Expert valuation report

An expert report (znalecký posudek) is a professional opinion by an expert, expert firm or expert institute registered in the list of experts kept by the Czech Ministry of Justice. An expert may only report in the field and branch they are authorised for - for property typically the field of economics, branch of real estate valuation, or the field of construction. Under Act No. 254/2019 Coll. the report must be complete, truthful and verifiable, and the expert works independently and impartially.

How to recognise one

The law prescribes a fixed structure: title page, assignment, list of documents used, findings, the opinion itself, reasoning, conclusion and any annexes. At the end comes the expert clause stating the register, field and branch and the entry number under which the report is recorded in the Ministry of Justice's register of reports.

• paper report: handwritten signature and the expert's seal
• electronic report: qualified electronic signature, a certificate marked “znalec” (expert) and a qualified time stamp
• the expert keeps the report for at least 10 years

What it is used for

When valuing a property, the expert usually determines the usual price under Act No. 151/1997 Coll. and, alongside it, the administrative price set by the valuation decree. A report is needed mainly where a court or authority requires one; parties may also commission it voluntarily, for example when settling a co-ownership share. Besides the price, a report can also describe the technical condition of a building.

Points to watch

For a mortgage, the bank has the collateral valued at usual price or market value. The Consumer Credit Act requires the valuer to be competent and independent, not registered as an expert, so a bank valuation need not be a formal expert report. The price in a report is not the price at which the property sells - that is agreed in the purchase contract and recorded in the land register as the recorded sale price.

Whether an expert is registered, and for which field, can be looked up in the Ministry of Justice's public list of experts. nmvt's location analysis and location check do not replace an expert report - they are indicative overviews of public data.