Legal entities that have concluded employment contracts with appraisers must take into account the requirements of the Law of the Republic of Kazakhstan “On Appraisal Activities in the Republic of Kazakhstan” in their work to avoid conflicts of interest and other consequences leading to a loss of trust in appraisal activities.

Conflict of interest – a situation in which the interest of an appraiser, a legal entity with whom the appraiser concluded an employment contract, or an expert may affect the reliability of the evaluation report or expert opinion.

Affiliated persons – individuals and (or) legal entities capable of influencing the activities of the appraiser, having the ability to directly and (or) indirectly make decisions on determining the possible market or other value of the appraisal object and (or) influence the decisions made by each other (one of the persons), including by virtue of the transaction.

No intervention of the customer or other interested persons in the appraiser’s activity shall be allowed, if this may adversely affect the accuracy of the evaluation result, including limiting the range of issues to be clarified during the evaluation.

Legal entities with whom the appraisers have concluded an employment contract shall have the right to:

– demand from the customer during the evaluation providing access to the appraisal object as well as to the documentation in full, necessary for carrying out the evaluation;

– receive explanations of the customer, as well as additional information necessary for carrying out the evaluation;

– involve as necessary on a contractual basis to participate in the evaluation of a specialist (specialists);

– refuse to carry out the evaluation in cases, if the customer has violated the terms of the contract for evaluation and did not provide the necessary information about the appraisal object;

– request in writing or orally from third parties the information necessary for the evaluation, except for information constituting state secrets, commercial and other secrets protected by the law.

Legal entities with whom the appraisers have concluded an employment contract shall be obliged to:

– comply with the requirements of this Law, other regulatory legal acts of the Republic of Kazakhstan and standards of valuation activities in the implementation of valuation activities;

– prevent the preparation of an inaccurate evaluation report;

– inform the customer or a legal entity with whom the appraiser has concluded an employment contract about the impossibility of his (her) participation in the evaluation in the event of circumstances that prevent conducting an objective evaluation;

– ensure the safety and confidentiality of documents, information received from the customer and third parties during the evaluation;

– provide information on membership in the chamber of appraisers upon request of the customer;

– keep the compiled evaluation reports for five years;

– provide on a quarterly basis in the manner prescribed by the chamber of appraisers, information about signed in the specified period evaluation reports with indication the date of this report and its sequence number, the appraisal object, type of a determined value;

– submit monthly, no later than the 5th day of the month following the reporting period, to the chamber of appraisers, of which he is a member, copies of reports on valuation of the property that is collateral in concluding a mortgage agreement, and also when selling mortgaged property;

– in cases stipulated by the legislation of the Republic of Kazakhstan, provide copies of the stored evaluation reports or information to state bodies, other organizations, officials, the chamber of appraisers, of which he is a member, upon their request;

– familiarize the customer with the register of unscrupulous appraisers.

The Legal entities with whom the appraisers have concluded an employment contract may not conduct an evaluation if:

1) in respect to the appraisal object, the appraiser has or acquires real or obligatory rights outside the contract;

2) the appraiser has a property interest in the appraisal object;

3) the appraiser is an affiliate of the customer;

4) the legal entity- customer is a creditor or insurer of the appraiser;

5) the appraiser is a shareholder, founder, employee, owner, participant, creditor, debtor, sponsor of the legal entity-customer or the appraiser is a close relative or relative-in –law of the customer – an individual;

6) the appraiser is an employee of a legal entity in which the head or the person authorized by him (her) is in close kindred or –in-law relations with the customer – an individual and (or) the head or an authorized person of the legal entity;

7) this entails the occurrence of a conflict of interests or creates the threat of such a conflict, except for obligations arising from concluded public contracts.

Disputes arising between the chamber of appraisers, the appraiser, a legal entity with whom the appraiser has concluded an employment contract, the customer or the third parties in the implementation of evaluation, including those not resolved through the examination of the evaluation report, shall be resolved in the court.