New trends in regulating valuation activities in the Republic of Moldova: their impact and consequences

Abstract

Real estate valuation is a new type of economic activities that has emerged in the Republic of Moldova relatively recently and thus needs to be fine-tuned and regulated. International practices know two types of regulating valuation activities: regulation by nongovernment organizations of valuers (self-regulation), and the type involving some extent of state regulation. The type of regulating valuation activities that is most common in emerging economies is state regulation jointly with NGOs of valuers. The extent of state regulation in the general system of organizing valuation activities is still the focus of attention for researchers and practitioners in the field of real estate valuation. The author examines diverse approaches to regulation of valuation activities and discusses their strengths and weaknesses for the purpose of analyzing the most recent amendments to Moldova’s Act on Valuation Activities and identifying possible impact and consequences of their practical application. The conclusion arrived at is that the ambiguous trends in the development of valuation activities increase the risk of state interference therein and violations of the fundamental real estate valuation principles, including the valuation confidentiality principle, which is generally contrary to the international mainstream development of valuation activities. The article also suggests certain measures for further development and improvement of the ways for organizing real estate valuations as an activity.