Insolvency proceedings place particular demands on real estate appraisal reports: time pressure is often high, property documentation is frequently incomplete, and the appraisal report must serve as a robust basis for decision-making for the insolvency court as well as for potential bidders and creditors.
For years, we have worked regularly for insolvency administrators, estate administrators and guardianship authorities. We are familiar with the particularities of insolvency properties — limited cooperation from the debtor, missing documentation, short-term realisation deadlines — and align our working approach accordingly.
The basis for realisation is regularly a market value report.
For courts, notaries and public authorities there is a dedicated section on appraisals for courts and public authorities.
Determination of market value in auction proceedings
In compulsory auction proceedings the enforcement court determines the market value under section 74a(5) ZVG. The basis is regularly an expert report; the parties are heard beforehand. This determination is no formality but the reference figure for everything that follows — the value thresholds at which an award of the bid can fail depend on it.
Why the determined value threshold decides the realisation
If the highest bid at the first hearing remains below half of the determined market value, the award of the bid must be refused of the court's own motion under section 85a(1) ZVG. Below seven tenths, an unsatisfied party entitled may apply for refusal (section 74a(1) ZVG). At the second hearing these thresholds no longer apply.
For the realisation this means: a market value set too low gives away estate assets, one set too high leads to fruitless hearings and lost time. How the thresholds operate in detail is set out in the article market value and compulsory auction.
Working with the court
Where the expert is appointed by the court, the instruction follows the order for the taking of evidence. This includes the site inspection — even where the debtor cooperates only to a limited extent —, the written submission of the report and, on request, oral explanation at the hearing. Supplementary questions from the parties are answered in writing.
Where an existing valuation report is called into question on technical grounds, the options are set out under Review, arbitral and court appraisals.
Fees: JVEG or fixed price
For experts appointed by a court or public authority, the Judicial Remuneration and Compensation Act (JVEG) applies. Where instructed directly by insolvency administrators, solicitors or notaries, a freely agreed fixed price applies instead, based on the fee schedule for the market value report.
Please state at first contact whether the mandate is a judicial or a private one — the basis of billing depends on it.
