Procedure for valuation of the mortgaged property
The procedure of valuation of the mortgage property begins when the borrower, the mortgagor and all the parties have received the letters “Θ” and “ I”.
The auction procedure provides that two valuators are needed, one on behalf of the mortgage creditor and one on behalf of the mortgagor. The valuations for the determination of the market value of the mortgaged property must be simultaneous and independent by the two valuators, according to the data and the information related to the mortgage property.
The mortgagor may, instead of appointing a valuator as stated above, request the value of the general valuation that is related to the mortgaged property, as at times defined in the Immovable Property Law, to be the estimated market value of the subject property.
In any case, the two valuators have to take into account the valuation of the relevant District Land Registry Office in carrying out their independent valuations.
When all the parties have received the Letters “Θ” and “ I”, the mortgage creditor serves a notice on the mortgagor in the form “Type IB”, which may be served either before, or after, or concurrently with the notice per Form “Type IA”, referring that within 10 days after the form “Type IB” is served to the mortgagor, the mortgagor should appoint a valuator. The mortgagor, after receiving the form “Type IB” must appoint a valuator and inform the mortgage creditor of the identity of the valuator appointed before the expiration of the ten day notice period.
After that the mortgage creditor can appoint his valuator and if the mortgagor fails to appoint a valuator within the time specified, the mortgage creditor shall proceed with the appointment of two valuators for the determination of the market value of the mortgaged property.
The valuators, shall have a duty to prepare their valuations independently and simultaneously, without consultation with one another, and without disclosing their estimates to one another or to third parties until the formal delivery of their valuations to the mortgage creditor and the mortgagor, at the place and time indicated in the notice specified, but in no event no later than thirty days after the selection of the valuator by the mortgage creditor. If the higher valuation, based on the valuation reports, is less than the lower valuation plus 25% of the lower valuation, then the market value will be the average between the two valuations and such determination shall be final.
If the higher valuation, based on the valuation reports, is equal or more than the lower valuation plus 25% of the lower valuation, the mortgage creditor shall within five (5) days from the delivery of the valuations, request the Cyprus Scientific and Technical Chamber to appoint an independent valuator within ten days, who shall, within not more than thirty days from his appointment, prepare an independent valuation of the mortgaged property, and furnish simultaneously a true copy thereof to the mortgage creditor, the mortgagor and any interested parties.
In case an independent third valuator is appointed, the market value of the mortgaged property shall be, taking into account the valuations received, the average of the two closest values, if the three valuations differ equally among them, then the market value of the mortgaged property shall be the average of the three valuations.
