REPUBLIC OF LITHUANIA

LAW ON

THE BASES OF PROPERTY AND BUSINESS VALUATION

25 May 1999 No VIII-1202

(As last amended on 7 October 2014 No XII-1200)
Vilnius

CHAPTER ONE

General provisions

Article 1. Purpose of the Law

This Law shall lay down the principles of establishing the value of property or business, the bases for and cases of property or business valuation, the bases for and supervision of activities of property or business valuers and property or business valuation companies, the rights, duties and liability of property or business valuers and property or business valuation companies and requirements for property or business valuers and property or business valuation companies. Other laws of the Republic of Lithuania shall apply to property or business valuers and property or business valuation companies to the extent their activities are not regulated by this Law.

Article 2. Definitions

1. Replacement value of property means the estimated amount of money required to re-create, reproduce or reconstruct (equip) a subject property of the same physical and operational characteristics.

2. Individual valuation of property or business means valuation of property or business, considering its individual characteristics on a certain day, following an appropriate property or business valuation approach, the procedure for and manner of application whereof are established in the Property and Business Valuation Methodology.

3. Movable property/movable item means a property/item that can be moved from one place to another without changing its purpose and, in substance, reducing its value, unless laws stipulate otherwise.

4. Mass property valuation means simultaneous valuation of homogeneous property (items defined by their specific characteristics), considering the condition of the property on a certain day, following an appropriate property or business valuation approach, the procedure for and manner of application whereof are established in the Property and Business Valuation Methodology, and with reference to the legislation regulating such valuation.

5. Immovable property/immovable item means a land lot and items pertaining to it that cannot be moved from one place to another without changing their purpose and, in substance, reducing their value, as well as property/movable items recognised as immovable by laws.

6. Non-compulsory property or business valuation means valuation of property or business carried out at the client’s initiative, on the basis of a contract between the client and a property or business valuation company or an independent property or business valuer.

7. Compulsory property or business valuation means valuation of property or business carried out in cases provided for in the legislation of the Republic of Lithuania in order to secure public interest.

8. Special-purpose property means property intended for a special purpose, which is of limited demand and therefore is rarely sold, or is not marketable and therefore is not sold at all.

9. Property means tangible, intangible and financial assets that may be the object of market transactions.

10. Market value of property or business means the estimated amount of money for which the property or business could be transferred on the date of its valuation upon concluding an arm’s length transaction between a willing transferor and a willing acquirer after proper marketing of the property or business wherein the parties to the transaction each act knowledgeably, prudently and without compulsion.

11. Value of property or business (hereinafter: ‘the value’) means a unit of measure of usefulness of property or business at any given time, established on the basis of an appropriate property or business valuation approach, the procedure for and manner of application whereof are laid down in the Property and Business Valuation Methodology.

12. Valuation of property or business means establishing the value of property and/or business following an appropriate property or business valuation approach, the procedure for and manner of application whereof are established in the Property and Business Valuation Methodology.

13. Valuation of property or business for internal purposes means valuation of property or business carried out at the sole discretion of a legal person or any other organisation established in the Republic of Lithuania or another Member State, or any branches thereof, to safeguard the performance of direct functions of the legal person or any other organisation established in the Republic of Lithuania or another Member State, or any branches thereof, except for valuation of property or business under property or business valuation contracts with clients.

14. Property or business valuation company means a legal person established in the Republic of Lithuania or a legal person of another Member State, any other organisation or any branches thereof, engaging in property or business valuation activities in accordance with the procedure prescribed by the legal acts of the Republic of Lithuania.

15. Property and business valuation methodology means a legal act adopted by the Government of the Republic of Lithuania or any other institution authorised by it, which regulates the procedure for and manner of application of property and business valuation approaches established in the International Valuation Standards and the European Valuation Standards in the Republic of Lithuania, in cases envisaged in the said standards.

16. Client of the property or business valuation service (hereinafter: ‘the client’) means a natural or legal person or any other organisation, or any branches thereof, which, pursuant to their regulations, are entitled to enter into contracts, and which have entered into a property or business valuation contract with a property or business valuation company.

17. Property or business valuer means a citizen of the Republic of Lithuania or any other Member State or any other natural person, who exercises the rights of movement within the Member States granted to him by the EU legislation, and who engages in valuation of property or business.

18. Qualification certificate of a property or business valuer means a document issued to a natural person by an agency authorised by the Government of the Republic of Lithuania to perform state supervision of property or business valuers and property or business valuation companies that confirms the qualifications of that person as a valuer of property or business specialising in a particular field.

19. Code of professional ethics of property or business valuers means a legal act adopted by the Government of the Republic of Lithuania or any other institution authorised by it that establishes the standards of professional conduct mandatory for all property or business valuers.

20. Price of property means the amount of money that has been asked, offered or paid for the property.

21. Value in use of property means the estimated amount of money representing the property’s economic advantage generated for a specific user.

22. Member State means any state which is a member of the European Union, a state of the European Economic Area or the Swiss Confederation.

23. Business means any activity of a natural or legal person or any other organisation or branches thereof which is aimed at earning income and profit by using economic resources.

Article 3. Objects and subjects of property or business valuation

1. Objects of property or business valuation shall be property and business of any type.

2. Subjects of property or business valuation shall be:

1) clients;

2) property or business valuation companies;

3) legal persons or any other organisations established in the Republic of Lithuania or another Member State, or branches thereof, carrying out property or business valuation for internal purposes;

4) property or business valuers.

Article 4. Cases of property or business valuation

Property or business shall be valued:

1) in cases provided for by laws and other legal acts (compulsory valuation of property or business);

2) for internal purposes;

3) in other cases, as requested by the client.

Article 5. Principles of establishing the value of property or business

1. The value of property or business shall be established as follows:

1) based on the logics and criteria of market economy and the results of research and observation of market and economic conditions, the application whereof is covered in detail by the Property and Business Valuation Methodology;

2) adhering to the principles of equity, rationality, fairness, immunity of property, freedom of contract, impartiality and independence of valuation, legal explicitness and unacceptability of abuse of law;

3) using the criteria of legitimate and reasonable expectations and interests, prudence and caution, replacement of property or business and alternative use of property or business, which are covered in detail by the Property and Business Valuation Methodology.

2. The basis of property or business valuation shall be the benefit that can be obtained if the property or business is used, developed or disposed of rationally.

3. The value of property or business may be established on the basis of:

1) purchase and sales contracts;

2) the costs of creation/restoration of property;

3) income obtained from the use of property or business income;

4) other bases of valuation of property or business as established in the International Valuation Standards and the European Valuation Standards.

Article 6. Approaches to property or business valuation

1. Valuation of property or business shall be carried out using the approaches to property and business valuation as established in the International Valuation Standards and the European Valuation Standards and in cases identified therein.

2. The procedure for and manner of application in the Republic of Lithuania of approaches established under the International Valuation Standards and the European Valuation Standards in cases of property or business valuation as identified therein shall be thoroughly covered by the Property and Business Valuation Methodology.

CHAPTER TWO

PROPERTY OR BUSINESS VALUERS AND PROPERTY OR BUSINESS VALUATION COMPANIES

Article 7. Classification of property or business valuers

Property or business valuers shall be classified as follows:

1) an independent property or business valuer (an external property or business valuer) shall be a valuer of property or business working under an employment contract for a property or business valuation company or the owner of an individual enterprise being a property or business valuation company or a general member of a partnership being a property or business valuation company who carries out valuation of property or business on behalf of such company under contracts made between the company and its clients, or in cases envisaged in the legislation of the Republic of Lithuania, or who, operating under an individual activity certificate, carries out valuation of property or business under contracts with clients and in cases envisaged in the legislation of the Republic of Lithuania;

2) an internal property or business valuer shall be a valuer of property or business, working under an employment contract for a legal person or any other organisation established in the Republic of Lithuania or another Member State, or branches thereof, or the owner of an individual enterprise or a general member of a partnership who carries out property or business valuation for internal purposes of such legal person or any other organisation established in the Republic of Lithuania or another Member State, or branches thereof.

Article 8. General requirements for property or business valuers

A property or business valuer may be a natural person who:

1) is deemed to be of good repute taking into consideration the provisions of Article 9(13) of this Law;

2) has a university degree in mathematics, statistics or informatics in the field of physical sciences, general engineering, civil engineering, manufacturing engineering, engineering or building technology in the field of technological sciences, or economics, business, management or business and management in the field of social sciences, or spatial planning to qualify as an assistant immovable property valuer (lowest-level qualification, an immovable property valuer (higher-level qualification) or an expert immovable property valuer (highest-level qualification); mathematics, statistics or informatics in the field of physical sciences, general engineering, mechanical engineering, electronics and electric engineering, manufacturing engineering, land transport engineering or engineering in the field of technological sciences, or economics, business, management or business and management in the field of social sciences to qualify as an assistant movable property valuer (lowest-level qualification), a movable property valuer (higher-level qualification) or an expert movable property valuer (highest-level qualification); and economics, business, management or business and management in the field of social sciences to qualify as an assistant business valuer (lowest-level qualification), a business valuer (higher-level qualification) or an expert business valuer (highest-level qualification);

3) has work experience relating to property valuation to qualify as an assistant property valuer (lowest-level qualification), or work experience relating to business valuation to qualify as an assistant business valuer (lowest-level qualification);

4) has been qualified, for at least three years, as an assistant immovable or movable property valuer or an assistant business valuer (lowest-level qualification) to qualify respectively as an immovable or movable property valuer or a business valuer (higher-level qualification), or has been qualified, for at least seven years, as an immovable or movable property valuer or a business valuer (higher-level qualification) to qualify respectively as an expert immovable or movable property valuer or an expert business valuer (highest-level qualification); and has at least three years of work experience in carrying out immovable or movable property or business valuation to qualify respectively as an immovable or movable property valuer or a business valuer (higher-level qualification), or at least seven years of work experience in carrying out immovable or movable property or business valuation and has respectively prepared at least 50 property or business valuation reports to qualify as an expert immovable or movable property valuer or an expert business valuer (highest-level qualification);

5) has passed a qualification examination of a property or business valuer in accordance with the procedure prescribed by the Rules for Organising Qualification Examinations of Property or Business Valuers as approved by the Minister of Finance. The examination shall be held in writing.

Article 9. Qualification of property or business valuers

1. A natural person who has passed a qualification examination of a property or business valuer shall be awarded the qualification of an assistant valuer (lowest-level qualification), a valuer (higher-level qualification) or an expert valuer (highest-level qualification) of immovable or movable property or a business valuer (hereinafter: ‘property or business valuer’s qualification’) and shall be issued a qualification certificate of a property or business valuer, with the exception of the case specified in Article 11 of this Law. The property or business valuer’s qualification shall be awarded and the qualification certificate of a property or business valuer shall be issued by an agency authorised by the Government of the Republic of Lithuania to perform state supervision of property or business valuers and property or business valuation companies (hereinafter: ‘the Property Valuation Oversight Agency’) in accordance with the procedure prescribed in the Rules for the Issuance and Revocation of Qualification Certificates of Property or Business Valuers as approved by the Minister of Finance. The list of property or business valuers who hold a valid qualification certificate of a property or business valuer shall be published by the Property Valuation Oversight Agency on its website.

2. The qualification certificate of a property or business valuer shall specify the following:

1) the number of the qualification certificate of a property or business valuer;

2) the full name of the property or business valuer;

3) the field of immovable or movable property or business valuation;

4) the qualification of an assistant valuer (lowest-level qualification) or a valuer (higher-level qualification) or an expert valuer (highest-level qualification);

5) the date when the property or business valuer’s qualification was awarded;

6) the agency performing state supervision of property or business valuers and the agency which has issued the certificate.

3. The qualification certificate of a property or business valuer shall be signed by the head of the agency which has issued it and shall be endorsed with the agency’s seal.

4. The qualification certificate of a property or business valuer shall also contain an image of the property or business valuer’s face.

5. Property or business valuers shall be examined by a commission for a qualification examination of property or business valuers (hereinafter: ‘the examination commission’). The examination commission shall consist of five members, including its chairperson (three members being proposed by the Property Valuation Oversight Agency and one by the Ministry of Finance of the Republic of Lithuania (hereinafter: ‘the Ministry of Finance’) and higher education institutions of the Republic of Lithuania (hereinafter: ‘higher education institutions’) each).

6. The Property Valuation Oversight Agency shall apply to the Ministry of Finance regarding the Ministry’s representative in the examination commission, and the latter must provide a list of three candidates for the examination commission, who are civil servants.

7. The Property Valuation Oversight Agency shall apply to organisations uniting higher education institutions regarding the higher education institutions’ representatives in the examination commission, and request the latter to provide a list of three candidates for the examination commission.

8. Candidates nominated by the Property Valuation Oversight Agency must be members of an association uniting solely property and/or business valuers, and/or property or business valuers working under an employment contract for an association uniting solely property or business valuation companies, or the owners of individual enterprises or general members of a partnership, which are members of this association, who have the qualification of a property or business valuer. Associations uniting solely property and/or business valuers and/or property or business valuation companies shall, by mutual consent, nominate three of their members who have the qualification of a property or business valuer in a specific field of property or business valuation as candidates to be nominated by the Property Valuation Oversight Agency, subject to written consent of such members.

9. A separate examination commission shall be formed for a qualification examination of a property or business valuer of each field of property or business valuation. The composition of the examination commission shall be approved and its chairperson appointed by the Minister of Finance from among the individuals specified in the summary list of candidates for the examination commission provided by the Property Valuation Oversight Agency, observing the proportions specified in paragraph 3 of this Article. The same individual may be a member of the examination commission for qualification examinations of property or business valuers in several fields of property or business valuation. Upon resignation, removal or revocation of a member of the examination commission, the Property Valuation Oversight Agency shall update the summary list of candidates for the examination commission in accordance with the procedure laid down in paragraphs 6, 7 and 8 of this Article.

10. The term of office of a member of the examination commission shall be two years. The term of office of a member of the examination commission shall commence on the effective date of the order from the Minister of Finance regarding the approval of the commission or the appointment of another member. The same individual may only be appointed member of the examination commission for two consecutive terms of office. A member of the examination commission may resign or be removed for reasons specified in paragraph 14 of this Article, or revoked on the basis of a revocation appeal from the institution that nominated such member of the examination commission before the expiry of their term of office. To fill the position of a member of the examination commission who has resigned, been removed or revoked, the Minister of Finance shall appoint another member from the summary list of candidates for the examination commission, observing the proportions specified in paragraph 5 of this Article.

11. 30 days before the expiry of the term of office of a member of the examination commission, new candidates to sit on the examination commission for the next term of office shall be proposed in accordance with the procedure stipulated in paragraphs 5, 6, 7 and 8 of this Article. When appointing members of the examination commission for the next term of office, unless the associations specified in paragraph 8 of this Article propose their candidates to serve as members of the examination commission to the Property Valuation Oversight Agency, the Property Valuation Oversight Agency shall nominate them from among the members (property or business valuers) of the most numerous associations uniting solely property or business valuers and/or property or business valuation companies, upon the consent of such members.

12. A candidate for the examination commission must:

1) have a university or an equivalent degree in any of the fields specified in the Rules for Organising Qualification Examinations of Property or Business Valuers;

2) have knowledge of this Law, the International Valuation Standards, the European Valuation Standards, the Property and Business Valuation Methodology and other legal acts regulating property or business valuation and the activities of property or business valuers and property or business valuation companies;

3) be of good repute;

4) be qualified as a valuer (higher-level qualification) or an expert valuer (highest-level qualification), when the person is nominated by the Property Valuation Oversight Agency;

5) have more than three years of work experience in the civil service, draft or be involved in drafting legal acts regulating property or business valuation, when the person is nominated by the Ministry of Finance;

6) have at least three years of work experience of teaching in the fields specified in the Rules for Organising Qualification Examinations of Property or Business Valuers and be qualified at least as a valuer (higher-level qualification), when the person is nominated by organisations uniting higher education institutions.

13. A person shall not be considered of good repute if he:

1) has been convicted of a serious or grave crime against property, property rights, property interests, security of electronic data or information systems, the economy, the order of business, the financial system, civil service or public interests, regardless of whether the conviction has expired, or has been expunged or not, as well as convicted for other crimes, when the conviction has not yet expired;

2) dismissed from work for breach of labour discipline or dismissed from the office of a civil servant for misconduct in office within the past three years.

14. The members of the examination commission shall be guided by the Rules of Procedure of the Examination Commission for Qualification Examinations of Property or Business Valuers. The members of the examination commission shall adhere to the integrity declaration in the form and of the content established in the Rules for Organising Qualification Examinations of Property or Business Valuers. If the integrity declaration presented by a member of the examination commission is found to be misleading, that member shall be removed from the examination commission in accordance with the procedure prescribed in the Rules of Procedure of the Examination Commission for Qualification Examinations of Property or Business Valuers as approved by the Minister of Finance. The examination commission shall adopt a decision on whether the qualification examination of a property or business valuer has been passed or not. An appeal against the actions of the examination commission shall be filed with the Property Valuation Oversight Agency within five working days of the date of adoption thereof. This time limit may be extended by decision of the Property Valuation Oversight Agency if the reasons for missing the time limit for making an appeal against a decision of the examination commission have been recognised by the Property Valuation Oversight Agency as serious (transport and communications disruptions due to an epidemic, enemy assault, excessive flooding or any other natural disaster, an illness of the person appealing against the decision of the examination commission for the qualification examination of a property or business valuer as diagnosed by a healthcare establishment, the death of his family members or next-of-kin or a sudden condition that may threaten their lives). Appeals against decisions of the examination commission shall be examined by the Property Valuation Oversight Agency in accordance with the procedure prescribed in the Rules for Examining Appeals against Decisions of the Examination Commission for Qualification Examinations of Property or Business Valuers.

15. The decision to award the qualification of an assistant valuer (lowest-level qualification) or a valuer (higher-level qualification) or an expert valuer (highest-level qualification) and to issue a qualification certificate of a property or business valuer shall be made by the Property Valuation Oversight Agency not longer than within ten working days from the expiry of the time limit for appealing against decisions of the examination commission and shall be published on the Property Valuation Oversight Agency’s website.

Article 10. Validity of a qualification certificate of a property or business valuer

1. A qualification certificate of a property or business valuer shall be issued for an unlimited duration.

2. The property or business valuer’s qualification shall be verified when the Court of Honour of Property or Business Valuers imposes a disciplinary penalty specified in Article 29(4)(3) of this Law. Verification of qualification shall involve the holding, in accordance with the Rules for Organising Qualification Examinations of Property or Business Valuers, of a qualification examination of a property or business valuer at the highest level of qualification held by the property or business valuer.

3. A qualification certificate of a property or business valuer shall be suspended:

1) when the Court of Honour of Property or Business Valuers adopts a decision to impose a disciplinary penalty specified in Article 29(4)(3) of this Law – upon the expiry of a time limit for appealing against such a decision, if no appeal has been made against the decision of the Court of Honour of Property or Business Valuers, or upon the coming into effect of a court decision to uphold the decision of the Court of Honour of Property or Business Valuers specified in Article 29(4)(3) of this Law;

2) if, upon receipt (by registered mail) of a written enquiry from the Property Valuation Oversight Agency, the property or business valuer refuses or fails, within an established time limit and in the absence of important reasons specified in Article 9(14) of this Law, to issue an explanation regarding the valuations of property or business carried out by the property or business valuer;

3) if, at the end of a calendar year, the property or business valuer fails, in accordance with the procedure prescribed in the Rules for the Issuance and Revocation of Qualification Certificates of Property or Business Valuers, within a period of three months and in the absence of important reasons specified in Article 9(14) of this Law, to provide the Property Valuation Oversight Agency with a property and/or business valuation activity and in-service training report for the past calendar year;

4) if the property or business valuer has, for the past three years and in the absence of important reasons specified in Article 9(14) of this Law, failed to attend in-service training in the fields indicated in the Description of Requirements for the Education, Professional Experience and In-service Training of Property or Business Valuer and, upon receipt (by registered mail) of a written enquiry from the Property Valuation Oversight Agency, fails to produce documents supporting the fact of in-service training;

5) when the property or business valuer is found, by an effective court judgment, guilty of any of the crimes specified in Article 9(13)(1) of this Law, except for a serious or grave crime against property, property rights, property interests, security of electronic data or information systems, the economy, the order of business, the financial system, civil service or public interests. In these cases, the qualification certificate of the property or business valuer shall be suspended until the property or business valuer’s conviction for the crimes specified in Article 9(13)(1) of this Law expires, except for a serious or grave crime against property, property rights, property interests, security of electronic data or information systems, the economy, the order of business, the financial system, civil service or public interests;

6) when the property or business valuer files an application to suspend the qualification certificate of a property or business valuer.

4. Suspension of validity of a qualification certificate of a property or business valuer shall render the property or business valuer’s right to carry out property or business valuation void, however, the property or business valuer shall be bound by all the duties of the property or business valuer specified in Article 15 of this Law, except for the duties set forth in Article 15(1)(3), Article 15(4)(3) and Article 15(4)(4) of this Law.

5. Suspension of validity of a qualification certificate of a property or business valuer shall be lifted if the reasons that caused the suspension of validity of the qualification certificate of a property or business valuer are removed not longer than within six months, except for the lifting of suspension of validity of the qualification certificate of a property or business valuer due to the reasons specified in points 1, 5 and 6 of paragraph 3 of this Article. For the reasons referred to in points 2, 3 and 4 of paragraph 3 of this Article, if the qualification certificate of a property or business valuer is suspended, the reason that caused the suspension shall be deemed removed when the property or business valuer files with the Property Valuation Oversight Agency a document proving the removal of the cause of the suspension or a copy thereof (where a copy is filed, it shall be accompanied by the original document for comparison purposes), unless this document has been issued by the Property Valuation Oversight Agency itself, and an application to lift the suspension of validity of the qualification certificate of a property or business valuer. If the qualification certificate of a property or business valuer is suspended for the reason specified in point 1 of paragraph 3 of this Article, the reason that caused the suspension shall be deemed removed when the property or business valuer passes the qualification examination of a property or business valuer specified in paragraph 2 of this Article and files an application to lift the suspension of his qualification certificate of a property or business valuer. If the qualification certificate of a property or business valuer is suspended for the reason specified in point 6 of paragraph 3 of this Article, the suspension of the validity of the qualification certificate of a property or business valuer shall be lifted when the property or business valuer files an application to lift the suspension of his qualification certificate of a property or business valuer.

6. A qualification certificate of a property or business valuer shall be revoked:

1) upon the death of the property or business valuer;

2) when the property or business valuer files an application to revoke his qualification certificate of a property or business valuer;

3) when the qualification certificate of a property or business valuer is suspended for a second time during the past three years, except for the reasons specified in point 6 of paragraph 3 of this Article;

4) if the property or business valuer whose qualification certificate has been suspended fails, over a period longer than six months, to remove the reasons that caused the suspension of the qualification certificate of a property or business valuer, except for the cases where the qualification certificate of a property or business valuer was suspended due to the reasons specified in points 1, 5, 6 of paragraph 3 of this Article, or fails, over a period longer than 11 months, to pass the qualification examination of a property or business valuer at the highest level of qualification of a property or business valuer held by the property or business valuer, according to the Rules for Organising Qualification Examinations of Property or Business Valuers;

5) when the Court of Honour of Property or Business Valuers adopts a decision to impose a disciplinary penalty specified in Article 29(4)(4) of this Law – upon the expiry of a time limit for appealing against such a decision, if no appeal has been made against the decision of the Court of Honour of Property or Business Valuers, or upon the coming into effect of a court decision to uphold the decision of the Court of Honour of Property or Business Valuers to impose a disciplinary penalty specified in Article 29(4)(4) of this Law;

6) when the property or business valuer is found, by an effective court judgment, guilty of a serious or grave crime against property, property rights, property interests, security of electronic data or information systems, the economy, the order of business, the financial system, civil service or public interests.

7. The decision to suspend a qualification certificate of a property or business valuer, except for the grounds specified in points 1 and 5 of paragraph 3 of this Article, to lift the suspension thereof, except for the ground specified in point 5 of paragraph 3 of this Article, or to revoke the qualification certificate of a property or business valuer, except for the grounds specified in points 5 and 6 of paragraph 6 of this Article, shall be made by the Property Valuation Oversight Agency within three working days of the date when the grounds specified in this Article transpired.

8. The decision to suspend a qualification certificate of a property or business valuer based on the grounds specified in point 1 of paragraph 3 of this Article and to revoke the qualification certificate of a property or business valuer based on the grounds specified in point 5 of paragraph 6 of this Article shall be adopted by the Court of Honour of Property or Business Valuers.

9. The decision to suspend a qualification certificate of a property or business valuer based on the grounds specified in point 5 of paragraph 3 of this Article or to revoke the qualification certificate of a property or business valuer based on the grounds specified in point 6 of paragraph 6 of this Article shall be adopted by the court hearing the case.

10. The decisions referred to in paragraphs 7, 8, and 9 of this Article shall be published by the Property Valuation Oversight Agency on its website not longer than within three working days from the date of adoption thereof.

11. A qualification certificate of a property or business valuer shall be deemed suspended, or its suspension lifted, or the qualification certificate of a property or business valuer revoked as of the moment of publication of the respective decision to suspend the qualification certificate of a property or business valuer, lift the suspension, or revoke the qualification certificate of a property or business valuer on the Property Valuation Oversight Agency’s website, or upon the coming into effect of decisions of the Court of Honour of Property or Business Valuers to impose disciplinary penalties specified in Articles 29(4)(3) and 29(4)(4) of this Law, or, in the cases specified in point 5 of paragraph 3 and point 6 of paragraph 6 of this Article, upon the coming into effect of the court judgment, or, in the case referred to in point 5 of paragraph 3 of this Article, upon the expiry of conviction for the crimes specified in Article 9(13)(1) of this Law, except for a serious or grave crime against property, property rights, property interests, security of electronic data or information systems, the economy, the order of business, the financial system, civil service or public interests. In the cases listed above, all of the qualification certificates of a property or business valuer held by the property or business valuer in question shall be considered suspended or revoked, or their suspension lifted.

Article 11. Recognition of professional qualifications of property or business valuers from other Member States

1. The professional qualifications of property or business valuers from other Member States who intend to engage in valuation of property or business in the Republic of Lithuania upon establishment or on a temporary or one-time basis shall be recognised in accordance with the procedure prescribed by the Government of the Republic of Lithuania (hereinafter: ‘the Government’) or any other institution authorised by it.

2. The Property Valuation Oversight Agency shall refuse to recognise the qualifications of a property or business valuer from another Member State who intends to engage in valuation of property or business in the Republic of Lithuania on a temporary or one-time basis if the property or business valuer in question has been imposed the disciplinary penalty specified in Article 29(4)(3) of this Law until, during the verification of qualifications, the property or business valuer passes the qualification examination of a property or business valuer at the highest level of qualifications held by him, in accordance with the procedure established in the Rules for Organising Qualification Examinations of Property or Business Valuers. If, for longer than 11 months, the property or business valuer from another Member State engaged in valuation of property or business in the Republic of Lithuania on a temporary or one-time basis who has been imposed the disciplinary penalty specified in Article 29(4)(3) of this Article has, during the verification of qualifications, failed to pass the qualification examination of a property or business valuer at the highest level of qualifications held, in accordance with the Rules for Organising Qualification Examinations of Property or Business Valuers, their right to engage in valuation of property or business in Lithuania shall be revoked. The decision to revoke the right to engage in valuation of property or business shall be made by the Property Valuation Oversight Agency.

Article 12. Requirements for persons intending to engage in valuation of property or business

1. A legal person or any other organisation established in the Republic of Lithuania or another Member State, or any branches thereof, or an independent property or business valuer shall be entitled to engage in valuation of property or business provided they comply with the following requirements:

1) at least one property or business valuer who is qualified at least as a valuer (higher-level qualification) works under an employment contract, or the owner of an individual enterprise or a general member of a partnership is qualified at least as a valuer (higher-level qualification) for legal persons or other organisations established in the Republic of Lithuania or another Member State, or any branches thereof, intending to engage in valuation of property or business, or qualified at least as a valuer (higher-level qualification) for independent property or business valuers intending to engage in valuation of property or business;

2) compulsory third-party liability insurance is in place for legal persons or other organisations established in the Republic of Lithuania or any other Member State, or branches thereof, or independent property or business valuers intending to engage in valuation of property or business.

2. A legal person established in the Republic of Lithuania, or branches thereof, or an independent property or business valuer that satisfies the requirements laid down in paragraph 1 of this Article shall be entered on the List of Persons Entitled to Engage in External Valuation of Property or Business (hereinafter: ‘the List of External Valuers’) in accordance with the procedure prescribed by the Rules for the Drawing Up, Handling and Publication of the List of Persons Entitled to Engage in External Valuation of Property or Business as approved by the Minister of Finance and shall be deemed to comply with the requirements laid down in paragraph 1 of this Article on the next day after the date when their entry on the list is published on the Property Valuation Oversight Agency’s website.

3. Legal persons established in the Republic of Lithuania, or branches thereof, that carry out valuation of property or business for internal purposes only shall not be entered on the List of External Valuers.

4. An independent property or business valuer of another Member State shall be entitled to engage in valuation of property or business if the Property Valuation Oversight Agency recognises his professional qualification in accordance with the procedure set by the Government or another institution authorised by it, and if he has compulsory third-party liability insurance in compliance with the requirements specified in Article 17(2) of this Law. A legal person or any other organisation established in another Member State, or any branches thereof, shall be considered a property or business valuation company and shall be entitled to engage in valuation of property or business if the Property Valuation Oversight Agency recognises the professional qualifications of the property or business valuer employed by it in accordance with the procedure set by the Government or another institution authorised by it, and if they have compulsory third-party liability insurance in compliance with the requirements specified in Article 17(2) of this Law.

Article 13. Drawing up of the list of persons entitled to engage in valuation of property or business

1. Before entering a legal person established in the Republic of Lithuania, or any branches thereof, or an independent property or business valuer on the List of External Valuers, the Property Valuation Oversight Agency must have:

1) an application, in the form established in the Rules for the Drawing Up, Handling and Publication of the List of Persons Entitled to Engage in External Valuation of Property or Business, from the legal person established in the Republic of Lithuania, or any branches thereof, or the independent property or business valuer for the entry of the legal person established in the Republic of Lithuania, or any branches thereof, or the independent property or business valuer on the List of External Valuers;

2) a copy of the compulsory third-party liability insurance policy of the legal person established in the Republic of Lithuania, or any branches thereof, or the independent property or business valuer presented by the legal person established in the Republic of Lithuania, or any branches thereof, or the independent property or business valuer;

3) a copy of the registration certificate of the legal person established in the Republic of Lithuania, or any branches thereof. To obtain a copy of this certificate, the Property Valuation Oversight Agency shall refer to the manager of the Register of Legal Entities;

4) a written confirmation from the legal person established in the Republic of Lithuania, or any branches thereof, regarding the property or business valuer working under an employment contract for the legal person established in the Republic of Lithuania, or any branches thereof, or the owner of an individual enterprise who is a property or business valuer, or a general member of a partnership who is a property or business valuer, holding a valid qualification certificate of a property or business valuer, which must specify the full name and the qualification certificate number of the property or business valuer in question;

5) a copy of an individual activity certificate. To obtain a copy of this certificate, the Property Valuation Oversight Agency shall refer to the State Tax Inspectorate under the Ministry of Finance of the Republic of Lithuania.

2. The decision to enter a legal person established in the Republic of Lithuania, or any branches thereof, or an independent property or business valuer on the List of External Valuers shall be made by the Property Valuation Oversight Agency not longer than within ten working days of the date of receipt of the documents referred to in paragraph 1 of this Article and shall be published on the Property Valuation Oversight Agency’s website.

3. A certificate shall be issued when a property or business valuation company or an independent property or business valuer are entered on the List of External Valuers and a notice hereof is published on the Property Valuation Oversight Agency's website. The compulsory form of the certificate shall be approved and the certificate issued by the Property Valuation Oversight Agency.

4. The Property Valuation Oversight Agency must refuse entry on the List of External Valuers to a legal person established in the Republic of Lithuania, or any branches thereof, or an independent property or business valuer and issue a reasoned notice hereof to the legal person established in the Republic of Lithuania, or any branches thereof, or the independent property or business valuer by registered mail not longer than within ten working days of the date of receipt of documents of copies thereof if:

1) not all the necessary documents or copies thereof specified in paragraph 1 of this Article have been received;

2) the legal person established in the Republic of Lithuania, or any branches thereof, or the independent property or business valuer fails to comply with the requirements laid down in Article 12(1) and Article 17(2) of this Law.

5. The Property Valuation Oversight Agency shall strike a property or business valuation company or an independent property or business valuer off the List of External Valuers if:

1) the property or business valuation company or the independent property or business valuer files an application to be struck off the List of External Valuers;

2) a legal person established in the Republic of Lithuania ceases to exist or activities of its branch are terminated or the Property Valuation Oversight Agency adopts a decision due to the reasons specified in Article 10(6)(1) of this Law;

3) the property or business valuation company or the independent property or business valuer fails to satisfy the requirements specified in Article 12(1) of this Law;

4) the property or business valuation company or the independent property or business valuer fails to satisfy the requirements specified in Article 17(2) of this Law;

5) the property or business valuation company or the independent property or business valuer fails, when due, to present the Property Valuation Oversight Agency with the report indicated in Article 15(2)(1) and Article 15(4)(5) of this Law respectively, or the report presented contains incomplete or misleading information specified in Article 15(3) and Article 15(4)(5) of this Law, and the Property Valuation Oversight Agency has notified hereof the property or business valuation company or the independent property or business valuer in writing (by registered mail);

6) the property or business valuation company, having received (by registered mail) a written enquiry from the Property Valuation Oversight Agency, refuses or, within the established period of time, fails to provide explanations or documents related to valuations of property or business that the property or business valuation company has carried out, without important reasons referred to in Article 9(14) of this Law;

7) the qualification certificate of a property or business valuer is suspended or revoked.

6. A property or business valuation company or an independent property or business valuer shall be considered struck off the List of External Valuers on the next day after the date of publication of their striking off on the Property Valuation Oversight Agency’s website.

7. A legal person established in the Republic of Lithuania, or any branches thereof, or an independent property or business valuer that have been struck off the List of External Valuers may be re-entered on the list if the reasons for the striking off have been eliminated.

8. The decision to strike a property or business valuation company or an independent property or business valuer off the List of External Valuers shall be adopted by the Property Valuation Oversight Agency in accordance with the procedure prescribed by the Rules for the Drawing Up, Handling and Publication of the List of Persons Entitled to Engage in External Valuation of Property or Business not longer than within ten working days of the date when the circumstances referred to in paragraph 5 of this Article transpired and shall be published on the Property Valuation Oversight Agency’s website.

9. The List of External Valuers shall be published on the Property Valuation Oversight Agency’s website.

Article 14. Rights of property or business valuation companies and property or business valuers

1. A property or business valuation company and a property or business valuer shall have the following rights during valuation of property or business:

1) to obtain from the client any information and data required for the purpose of carrying out valuation of property or business and make use of information from state institutions and undertakings required for the purpose of carrying out valuation of property or business;

2) to inspect the subject property or business, its physical condition, rights to the subject property or business, restrictions of ownership rights and other characteristics of the property or business that are relevant for the purpose of establishing the value of the property or business;

3) to engage the necessary professionals and experts to carry out the valuation upon coordination with the client.

2. Based on the qualification level, a property or business valuer shall have the following rights:

1) an assistant valuer – to carry out valuation under the supervision of a property or business valuer who is qualified as a valuer or an expert valuer;

2) a valuer – to independently carry out valuation of property of a certain field or business;

3) an expert valuer – to independently carry out valuation of property of a certain field or business only when the client and a property or business valuation company or other persons are in dispute with regard to establishment of the value of the property or business and to issue conclusions on this matter or to independently carry out valuation of property of a certain field or business.

3. The provisions of this Law shall apply to assistant property or business valuers and expert property or business valuers to the extent they apply to property or business valuers, unless it is otherwise provided for or contradicts their rights laid down in paragraph 2 of this Article.

Article 15. Duties of property or business valuation companies and property or business valuers

1. Property or business valuation companies and property or business valuers must:

1) keep confidential information obtained while carrying out valuation of property or business, which, unless the legislation regulating cases of compulsory property or business valuation provides otherwise, is related to the subject of the property or business contract, the execution of the contract and its outcomes, and refrain from using it for personal gain or that of other persons;

2) disclose the information referred to in point 1 of this paragraph only in the cases and in accordance with the procedure provided for in the legislation of the Republic of Lithuania and in the cases specified in point 3 of paragraph 2 and point 6 of paragraph 4 of this Article;

3) provide the client, when entering into property or business valuation contracts and at the client’s request, with a certificate of proof that the property or business valuation company or the independent property or business valuer has been entered on the List of External Valuers; this provision shall not apply to independent property or business valuers and property or business valuation companies of other Member States that carry out valuation of property or business in the Republic of Lithuania on a temporary or one-time basis.

2. A property or business valuation company must:

1) provide the Property Valuation Oversight Agency, within three months of the end of a calendar year and in accordance with the procedure prescribed by the Rules for the Drawing Up, Handling and Publication of the List of Persons Entitled to Engage in External Valuation of Property or Business as approved by the Minister of Finance, with a report on valuation of property and/or business; this provision shall not apply to property or business valuation companies that carry out valuation of property or business in the Republic of Lithuania on a temporary or one-time basis;

2) have a property or business valuer who is qualified at least as a valuer (higher-level qualification) throughout the duration of the property or business valuation activities of the property or business valuation company;

3) provide the Property Valuation Oversight Agency, upon receipt (by registered mail) of its written enquiry, with explanations and documents pertaining to the valuation of property or business (property or business valuation reports, etc.).

3. The report referred to in point 1 of paragraph 2 of this Article must specify the name, code, registered office, legal status and legal form of the property or business valuation company and contain details of property and/or business valuation activity over the reporting financial year, such as the number of property valuations by field and/or the number of business valuations, income from valuation of property and/or business, a list of property or business valuers employed who hold a valid qualification certificate of a property or business valuer (stating their full names and the numbers of qualification certificates) and a copy of the third-party liability insurance policy of the property or business valuation company.

4. A property or business valuer must:

1) act in compliance with the Code of Professional Ethics of Property or Business Valuers;

2) fairly discharge his duties;

3) carry out valuation in a professional manner;

4) participate in in-service training;

5) provide the Property Valuation Oversight Agency, within three months of the end of a calendar year and in accordance with the procedure prescribed by the Rules for the Issuance and Revocation of Qualification Certificates of Property or Business Valuers, with a property and/or business valuation activity and in-service training report, stating the full name, contact details of the property or business valuer, the number of property valuations by field and/or the number of business valuations (in the event that the property or business valuer carried out the property or business valuations under an employment contract with a property or business valuation company, or as the owner or general member of a property or business valuation company, the number of property or business valuations shall be indicated together with the name of the property or business valuation company where such valuations were performed), as well as information about their in-service training; this provision shall not apply to independent property or business valuers of another Member State who carry out valuation of property or business in the Republic of Lithuania on a temporary or one-time basis;

6) provide the Property Valuation Oversight Agency, upon receipt (by registered mail) of its written enquiry, with explanations relating to property or business valuations carried out by the property or business valuer and documents pertaining to the valuation of property or business (property or business valuation reports, etc.).

Article 16. Liability of property or business valuation companies and independent property or business valuers

1. The liability of a property or business valuation company or an independent property or business valuer while carrying out valuation of property or business shall be established by this Law and other laws as well as property or business valuation contracts concluded between the client and the property or business valuation company.

2. The liability of legal persons or other organisations established in the Republic of Lithuania or another Member State, or any branches thereof, while carrying out property or business valuation for internal purposes only shall be set forth by this Law and other laws.

Article 17. Compulsory third-party liability insurance of property or business valuation companies and independent property or business valuers

1. A property or business valuation company and an independent property or business valuer must be covered by compulsory third-party liability insurance for the whole period of engaging in valuation of property or business.

2. The annual minimum amount of compulsory third-party liability insurance shall be not less than EUR 87,000.

3. The object of compulsory third-party liability insurance shall be the civil liability of a property or business valuation company and/or an independent property or business valuer for the damage done to the client and/or third parties due to inappropriately discharged obligations.

4. Civil liability of a property or business valuation company and/or an independent property or business valuer resulting from activity that is not related to valuation of property or business shall not be the object of compulsory third-party liability insurance.

5. The terms and conditions of a compulsory third-party liability insurance contract of a property or business valuation company and/or an independent property or business valuer, the pre-contractual and contractual rights and duties of the parties to the insurance contract shall be regulated by the Rules for Compulsory Third-party Liability Insurance of Property or Business Valuation Companies and Independent Property or Business Valuers as approved by the Insurance Supervisory Commission of the Republic of Lithuania.

Article 18. Restrictions of the rights of property or business valuation companies to carry out valuation of property or business

A property or business valuation company may not enter into any property or business valuation contracts if:

1) the client is a participant of the property or business valuation company and/or a member of its managing and supervisory bodies;

2) the property or business valuation company is a participant of the client;

3) a member of the participant of the property or business valuation company or its managing or other bodies is the spouse/cohabitee of the client or of the member of the client's managing bodies, or members of the participant of the property or business valuation company or its managing or other bodies are close relatives or in-laws to the client or to members of the client’s managing bodies;

4) the property or business valuation company is the owner/co-owner of the subject property or business.

Article 19. Restrictions of the rights of property or business valuers to carry out valuation of property or business

1. A property or business valuer shall be prohibited from carrying out property or business valuation if:

1) the property or business valuer is the owner/co-owner of the property or business;

2) the property or business valuer is the spouse/cohabitee of the client or of the client's participant holding at least 1/10 of votes at the meeting of the participants of the client, or the spouse/cohabitee of a member of the client’s managing bodies, or is a close relative/ in-law to the client or the client’s participants holding at least 1/10 of votes at the meeting of the participants of the client, or to members of the client’s managing bodies, or is a participant of the client or a member of its managing bodies;

3) the qualification certificate of the property or business valuer has been suspended.

2. A property or business valuer may only carry out valuation of property that he is entitled to valuate pursuant to the qualification of a property or business valuer held.

CHAPTER THREE

BASES OF PROPERTY OR BUSINESS VALUATION

Article 20. Bases for carrying out property or business valuation

1. Valuation of property or business shall be carried out in accordance with the procedure stipulated in Article 21 of this Law.

2. Non-compulsory valuation of property or business shall be carried out on the basis of property or business valuation contracts applying individual valuation of property or business.

3. Compulsory valuation of property or business shall be carried out in accordance with this Law and legal acts regulating such valuation applying mass valuation of property and/or individual valuation of property or business.

Article 21. Carrying out of property or business valuation

1. Valuation of property or business shall commence upon receipt of the client’s request to establish the value of property or business and a property or business valuation company or an independent property or business valuer and the client entering into a written property or business valuation contract, unless it is otherwise provided by the legal acts regulating cases of compulsory property or business valuation. By agreement of the parties, the contract may be accompanied by terms of reference.

2. A property or business valuation contract must specify the following:

1) the details of the property or business valuation company or the independent property or business valuer (its name, legal form, registered office, code, registry in which data about the company are accumulated and stored, or the full name and contact details of the independent property or business valuer);

2) the number of the certificate specified in Article 13(3) of this Law; this provision shall not apply to independent property or business valuers and property or business valuation companies of other Member States that carry out valuation of property or business in the Republic of Lithuania on a temporary or one-time basis;

3) the client’s details (its name, legal form, registered office, code, registry in which data about the client are accumulated and stored, or the full name and contact details of a natural person);

4) the case and object of property or business valuation and location of the object;

5) the date of establishment of the value of the property or business and the time limits for carrying out valuation of the property or business;

6) the amount of remuneration for the valuation of the property or business (the price of the service);

7) the rights, duties and liability of the property or business valuation company and/or the property or business valuer and the client;

8) the date of conclusion of the contract.

3. A property or business valuation contract may contain other terms and conditions.

4. A property or business valuer shall prepare a property or business valuation report specified in Article 22 of this Law.

5. No contract specified in paragraph 1 of this Article shall be concluded when carrying out valuation of property or business for internal purposes of a legal person or another organisation established in the Republic of Lithuania or another Member State, or any branches thereof. In that case, terms of reference shall be compulsory. The responsibility for drawing up terms of reference shall lie with the person entitled to act on behalf of the legal person or another organisation established in the Republic of Lithuania, or any branches thereof, or another person authorised by them.

6. The terms of reference must specify the following:

1) the title of the terms of reference, the date and venue of conclusion thereof;

2) the details of the legal person or another organisation engaging in the valuation of property or business established in the Republic of Lithuania or another Member State, or any branches thereof (such as its name, legal form, registered office, code, registry in which data about the legal person or another organisation established in the Republic of Lithuania, or any branches thereof, are accumulated and stored);

3) the case and object of property or business valuation and location of the object;

4) the individual characteristics of the subject property or business;

5) the date of establishment of the value of the property or business and the time limits for carrying out valuation of the property or business;

6) the full name and signature of the person entitled to act on behalf of the legal person or another organisation established in the Republic of Lithuania or another Member State, or any branches thereof, or that of the person authorised by them, and the full name and number of the qualification certificate of a property or business valuer, except for property or business valuers of another Member State, and the signature of the property or business valuer.

7. The terms of reference may specify other technical, design, or other details required for the purpose of calculating the value of property or business.

8. The property or business valuer shall, in compliance with the property or business valuation contract, unless the legal acts regulating cases of compulsory property or business valuation provide otherwise, or in compliance with the terms of reference and the International Valuation Standards, the European Valuation Standards, the Property and Business Valuation Methodology, and in consideration of the case of valuation (the specifics and intended use of the subject property or business), select approaches (or combinations of approaches) to valuation of property or business, and ways to apply such approaches.

9. The amount of remuneration for valuation of property or business must be fixed in the property or business valuation contract. The contract must clearly define all of the terms and conditions established therein.

Article 22. Property or business valuation report

1. A property or business valuation report shall be drawn up in writing.

2. For non-compulsory or compulsory valuation of property or business, a property or business valuation report shall be signed by an independent property or business valuer who has drawn it up. When valuation of property or business is carried out by an independent property or business valuer working under an employment contract for a property or business valuation company, the property or business valuation report shall also be signed by a person entitled to act on behalf of the property or business valuation company, or a person authorised by him, or a person commissioned to sign the property or business valuation report by legal acts. When the independent property or business valuer is also the owner of an individual enterprise, the property or business valuation report shall be signed once. Property or business valuation reports drawn up by a property or business valuation company shall also be attested by the seal of the property or business valuation company, where the property or business valuation company is obliged to have a seal under its founding documents or laws.

3. For valuation of property or business for internal purposes of a legal person or another organisation established in the Republic of Lithuania, or any branches thereof, a property or business valuation report shall only be signed by the property or business valuer who has drawn it up.

4. A property or business valuation report must specify the following:

1) the title of the report;

2) the name and location of the subject property or business;

3) individual characteristics of the subject property or business, except for the cases when valuation of property is carried out applying mass valuation of property;

4) the case of valuation;

5) the client’s details (its name, legal form, registered office, code, registry in which data about the client are accumulated and stored, or the full name and contact details of a natural person);

6) the tenure and owner of the subject property or business, except for the cases when valuation of property is carried out applying mass valuation of property;

7) the details of a property or business valuation company or an independent property or business valuer (the name, legal form, registered office, code, registry in which data about the property or business valuation company are accumulated and stored, or the full name, contact details of the independent property or business valuer and the number of the certificate of proof that the property or business valuation company or the independent property or business valuer have been entered on the List of External Valuers, except for independent property or business valuers and property or business valuation companies of another Member State engaged in property or business valuation in the Republic of Lithuania on a temporary or one-time basis);

8) the full names and signatures of the person entitled to act on behalf of the property or business valuation company, or the person authorised by him, or the person commissioned to sign the property or business valuation report by the legal acts and the property or business valuer;

9) the dates of inspection of the property or business, except for the cases where the valuation of property is carried out applying mass valuation of property and the dates of the drawing up of the report;

10) terms and conditions that might affect the valuation of the property or business and that have not been considered, providing the reasons for doing so;

11) approaches (or combinations of approaches) to valuation of property or business and ways to apply such approaches;

12) a description of the subject property or business;

13) substantiation of establishment of the value of the property or business, complete with the calculations of the value of the property or business;

14) an opinion on the value of the property or business signed by the property or business valuer who has drawn it up (bearing the full name and signature of the property or business valuer), stating if the opinion was drawn up as a result of a dispute between the client and the property or business valuation company or other persons regarding the establishment of the value of the property or business, and the date of the establishment of the value of the property or business.

5. The contents of the property or business valuation report may be extended by agreement between the client and the property or business valuation company or the independent property or business valuer, as well as in the cases and in accordance with the procedure provided for by other legal acts.

6. Property or business valuation reports must be registered by the property or business valuation company, or individually registered by the independent property or business valuer.

7. Counterparts/copies of property or business valuation reports shall be kept at property or business valuation companies that have carried out valuation of property or business as prescribed by the legal acts; furthermore, counterparts/copies of property or business valuation reports must, for at least five years, be kept by independent property or business valuers entered on the List of External Valuers or independent property or business valuers from other Member States.

Article 23. Legal status of a property or business valuation report and disputes concerning valuations of property or business

1. A property or business valuation report shall be considered correct unless the Property Valuation Oversight Agency has identified any derogations from the requirements laid down in Article 22 of this Law and/or unless it is contested in court.

2. Any disputes regarding the value of property or business shall be settled by mutual agreement of the parties or in court, unless other laws provide otherwise.

Article 24. Public access to property or business valuation reports and data

1. A property or business valuation report shall be the property of the client and may be issued to third parties or made public at the client’s discretion, considering the valuation case referred to in the report, with the exception of the case specified in Article 23(1) of this Law, when the compliance of the property or business valuation report to the requirements laid down in Article 22 of this Law needs to be established, unless the legislation of the Republic of Lithuania or the contracts concluded between a property or business valuation company or an independent property or business valuer and the client stipulate otherwise. The property or business valuation company or the independent property or business valuer must present a copy of the counterpart/copy of the property or business valuation report to the Property Valuation Oversight Agency in the cases specified in Article 15(2)(3) or Article 15(4)(6) of this Law.

2. For valuation of property or business for internal purposes of a legal person or another organisation established in the Republic of Lithuania or another Member State, or any branches thereof, a property or business valuation report shall be the property of the legal person or another organisation established in the Republic of Lithuania or another Member State, or any branches thereof, and may be issued to third parties or made public at its owner’s discretion, unless the legislation of the Republic of Lithuania provides otherwise. Upon receipt (by registered mail) of a written enquiry from the Property Valuation Oversight Agency, the legal person or another organisation established in the Republic of Lithuania or another Member State, or any branches thereof, must present the property or business valuation report, as well as any explanations from a property or business valuer and documents pertaining to the valuation of the property or business carried out.

3. When the valuation of property or business is carried out for the purpose of taxation, eminent domain and in other cases envisaged in the legislation of the Republic of Lithuania, when actions are taken in the interests of the State and the public, the public access to the property or business valuation report and its contents shall be established by this Law and the legal acts of the Republic of Lithuania regulating valuation of property or business for the purpose of taxation, eminent domain and in other cases envisaged in the legislation of the Republic of Lithuania, when actions are taken in the interests of the State and the public.

CHAPTER FOUR

SUPERVISION OF ACTIVITIES OF PROPERTY OR BUSINESS VALUERS AND PROPERTY OR BUSINESS VALUATION COMPANIES

Article 25. Supervision of activities of property or business valuers and property or business valuation companies

Supervision of activities of property or business valuers and property or business valuation companies shall be performed by the Property Valuation Oversight Agency.

Article 26. Institution authorised by the Government of the Republic of Lithuania to perform state supervision of property or business valuers and property or business valuation companies

1. The Property Valuation Oversight Agency shall operate in accordance with the law regulating its legal form, unless this Law provides otherwise, and its regulations.

2. When implementing the provisions of this Law, the Property Valuation Oversight Agency shall:

1) prepare and submit to the Ministry of Finance: a draft Description of the Requirements for the Education, Professional Experience and In-service Training of Property or Business Valuers, a draft Description of the Procedure for the Recognition of Professional Qualifications of Property or Business Valuers from Other Member States Intending to Engage in Valuation of Property or Business in the Republic of Lithuania upon Establishment, or on a Temporary or One-time Basis, draft Rules of Procedure of the Examination Commission for Qualification Examinations of Property or Business Valuers, a draft Code of Professional Ethics of Property or Business Valuers, a draft Property and Business Valuation Methodology, draft Rules for the Drawing Up, Handling and Publication of the List of Persons Entitled to Engage in External Valuation of Property or Business, draft Rules for the Review of Activities of Property or Business Valuers and Property or Business Valuation Companies, draft Rules for Organising Qualification Examinations of Property or Business Valuers, draft Rules for the Handling of Complaints Regarding the Decisions of the Examination Commission for Property or Business Valuer Qualification Examinations, draft Rules for the Issuance and Revocation of Qualification Certificates of Property or Business Valuers;

2) carry out reviews of property or business valuation activities of property or business valuers and property or business valuation companies in line with the Rules for the Review of Activities of Property or Business Valuers and Property or Business Valuation Companies;

3) investigate enquiries regarding the compliance of property or business valuation reports with the requirements laid down in Article 22 of this Law;

4) investigate applicants’ complaints regarding the activities of property or business valuation companies and property or business valuers in accordance with the procedure and within the time limits established in the Law of the Republic of Lithuania on Public Administration;

5) implement the decisions by the Court of Honour of Property or Business Valuers upon the expiry of the time limit for appealing against them;

6) coordinate the in-service training of property or business valuers;

7) manage the Computerised Data Processing and Searching System of Property or Business Valuers and Property or Business Valuation Companies in accordance with the Rules for the Use of the Computerised Data Processing and Searching System of Property or Business Valuers and Property or Business Valuation Companies coordinated with the Ministry of Finance and approved by the Property Valuation Oversight Agency;

8) be entitled to obtain from natural and legal persons (including property or business valuers and property or business valuation companies) information required for the purpose of carrying out supervision of activities of property or business valuers and property or business valuation companies or submitting to the Court of Honour of Property or Business Valuers, and copies of documents pertaining to valuations of property or business (such as property or business valuation reports, etc.), to make use of information available in the Computerised Data Processing and Searching System of Property or Business Valuers and Property or Business Valuation Companies administered by the Property Valuation Oversight Agency and in registries and databases administered and managed by other legal persons;

9) publish the list of property or business valuers holding a valid qualification certificate of a property or business valuer, and the List of External Valuers on its website;

10) have other rights and duties established in this Law and other legal acts.

3. In carrying out reviews of property or business valuation activities of property or business valuers and property or business valuation companies as stipulated in point 2 of paragraph 2 of this Article, the Property Valuation Oversight Agency shall:

1) analyse the compliance of the details provided in reports on activities and in-service training of property or business valuers as envisaged in Article 15(4)(5) of this Law with the details provided in activity reports of property or business valuation companies as established in Article 15(2)(1) of this Law, and/or the accuracy of such details;

2) examine the compliance of property or business valuation reports for a maximum period of three previous years drawn up by and registered at property or business valuation companies or drawn up by independent property or business valuers with the requirements laid down in Article 22 of this Law according to the activity plan approved by the Property Valuation Oversight Agency for that year.

4. In exercising the right stipulated in point 8 of paragraph 2 of this Article, the Property Valuation Oversight Agency must provide reasonable arguments to support its written enquiry requesting the provision of information and documents pertaining to valuations of property or business (property or business valuation reports, etc.), notify thereof (by registered mail) the natural or legal person (including a property or business valuer or a property or business valuation company) about whom the information is requested, and set a time limit for the provision of the documents and information.

5. The employees and former employees of the Property Valuation Oversight Agency must keep confidential the information they have obtained from natural and legal persons (including property or business valuers and property or business valuation companies) as well as the obtained documents relating to property or business valuation (property or business valuation report, etc.) and must refrain from using such information for their personal gain or that of other persons. The employees and former employees of the Property Valuation Oversight Agency shall be held liable for the misuse or unlawful disclosure of such information in accordance with the procedure prescribed by the legislation of the Republic of Lithuania.

6. The Property Valuation Oversight Agency shall, within four months of the end of a calendar year, submit to the Ministry of Finance reports on the activities and supervision of property or business valuers and property or business valuation companies, the results of such supervision and the status of property or business valuation in Lithuania.

Article 27. Presentation of decisions of the agency authorised by the Government of the Republic of Lithuania to perform state supervision of property or business valuers and property or business valuation companies

The Property Valuation Oversight Agency shall, not longer than within three working days of the publication on its website of decisions adopted in the cases specified in Article 9(15), Article 10(7) and Article 13(2) and 13(8), with the exception of the personal number of the property or business valuer, dispatch, by registered mail, endorsed copies of such decisions to property or business valuers and property and business valuation companies that are the subject of such decisions, and legal persons or organisations, or any branches thereof, or property or business valuation companies, which employ the property or business valuers that are the subject of such decisions.

Article 28. Court of Honour of Property or Business Valuers

1. The Court of Honour of Property or Business Valuers shall consist of five members:

1) three members qualified at least as valuers (higher-level qualification) shall be appointed, upon their consent, by associations uniting solely property and/or business valuers and/or property or business valuation companies from the members of the association uniting solely property and/or business valuers and/or property or business valuers working under an employment contract for the members of the associations uniting property or business valuation companies or who are the owners of individual enterprises or general members of partnerships;

2) two members who are civil servants and who have at least three years of experience in the civil service and experience in drafting or participation in drafting legal acts regulating property or business valuation shall be appointed, upon their consent, by the Ministry of Finance.

2. The composition of the Court of Honour of Property or Business Valuers shall be approved and its chairperson and deputy chairperson appointed from among the members of the Court of Honour of Property or Business Valuers by the Minister of Finance.

3. The term of office of the members of the Court of Honour of Property or Business Valuers shall be three years from the appointment date. The same person may be appointed member of the Court of Honour of Property or Business Valuers for not more than two consecutive terms of office. A member of the Court of Honour of Property or Business Valuers shall be appointed for another term of office within 30 days of the expiry of the term of office of the outgoing court member. Upon the expiry of the term of office of a member of the Court of Honour of Property or Business Valuers, he shall continue to serve as a member of the court until a new court member is appointed for the subsequent term of office. Upon resignation of a member of the Court of Honour of Property or Business Valuers, the appointing institution/organisation shall appoint a new member of the court not longer than within ten days. An institution appointing a member to the Court of Honour of Property or Business Valuers may recall the member prior to the expiry of his term of office. Upon recalling the member of the Court of Honour of Property or Business Valuers, the appointing institution/organisation shall appoint a new member of the court not longer than within ten days. In the event that the associations specified in point 1 of paragraph 1 of this Article do not appoint their members to the Court of Honour of Property or Business Valuers in the cases referred to in this paragraph, the Property Valuation Oversight Agency shall appoint such members, upon their consent, from among the property or business valuers of the members of the most numerous organisations uniting solely property or business valuers and/or property or business valuation companies.

4. In its activities, the Court of Honour of Property or Business Valuers shall abide by this Law and the Regulations of the Court of Honour of Property or Business Valuers, as approved by the Minister of Finance, that stipulate the principles of activities and organisation of work of the Court of Honour of Property or Business Valuers, its procedures for hearing disciplinary actions against property or business valuers and passing decisions.

5. The Court of Honour of Property or Business Valuers shall have the following duties:

1) to hear disciplinary actions against property or business valuers;

2) to invite property or business valuers to attend sittings of the Court of Honour of Property or Business Valuers when hearing disciplinary actions against them;

3) to pass decisions to impose disciplinary sanctions on property or business valuers or to close disciplinary proceedings.

6. The Court of Honour of Property or Business Valuers shall have the following rights:

1) to apply to the Property Valuation Oversight Agency regarding information (written explanations from property or business valuers; written explanations from property or business valuation companies and documents pertaining to valuations of property or business; other information relating to a disciplinary action against a property or business valuer) that may be required for the purpose of bringing and/or hearing a disciplinary action against a property or business valuer;

2) other rights stipulated in the Regulations of the Court of Honour of Property or Business Valuers that do not contradict this Law and other legal acts.

7. The Court of Honour of Property or Business Valuers may hear disciplinary actions against property or business valuers if a sitting is attended by more than half of the members of the Court of Honour of Property or Business Valuers. Decisions of the Court of Honour of Property or Business Valuers shall be adopted by a majority vote of all the members of the Court of Honour of Property or Business Valuers.

8. The members and former members of the Court of Honour of Property or Business Valuers must keep confidential information that they have obtained in the process of hearing disciplinary actions against property or business valuers and refrain from using it for their personal gain or that of other persons. The members and former members of the Court of Honour of Property or Business Valuers shall be held liable for any violations of these provisions in accordance with the procedure prescribed by laws of the Republic of Lithuania.

9. The Court of Honour of Property or Business Valuers shall be represented at other institutions by the chairperson and deputy chairperson of the Court of Honour of Property or Business Valuers.

10. The Property Valuation Oversight Agency shall ensure the provision of technical and material supplies for the Court of Honour of Property or Business Valuers.

Article 29. Disciplinary action against a property or business valuer

1. The Court of Honour of Property or Business Valuers shall impose on property or business valuers one of the disciplinary sanctions specified in paragraph 4 of this Article for infringements of the provisions of this Law, the International Valuation Standards, the European Valuation Standards, the Property and Business Valuation Methodology, the Code of Professional Ethics of Property or Business Valuers.

2. A written motion to the Court of Honour of Property or Business Valuers to initiate a disciplinary action against a property or business valuer based on the available information (submitted by persons in writing or held by the Property Valuation Oversight Agency) about the infringements specified in paragraph 1 of this Article shall be drawn up and filed by the Property Valuation Oversight Agency not longer than within ten working days of the date when such information was received/transpired. Information about infringements of this Law, the International Valuation Standards, the European Valuation Standards, the Property and Business Valuation Methodology, the Code of Professional Ethics of Property or Business Valuers made by property or business valuers of other Member States shall be forwarded (by registered mail) to the competent body of the respective Member State by the Property Valuation Oversight Agency.

3. The Court of Honour of Property or Business Valuers shall pass a decision to initiate a disciplinary action against a property or business valuer not longer than within ten working days of the date of receipt of a written motion to initiate a disciplinary action against the property or business valuer from the Property Valuation Oversight Agency.

4. The following disciplinary sanctions may apply to property or business valuers for the infringements specified in paragraph 1 of this Article:

1) a warning;

2) a reprimand;

3) suspension of the validity of the qualification certificate of a property or business valuer or temporary restriction of the right to engage in property or business valuation and verification of the qualification of a property or business valuer from another Member State who engages in property or business valuation in the Republic of Lithuania on a temporary or one-time basis;

4) revocation of the qualification certificate of a property or business valuer or revocation of the right to engage in property or business valuation of the property or business valuer from another Member State who engages in property or business valuation in the Republic of Lithuania on a temporary or one-time basis.

5. One infringement shall only entail one disciplinary sanction. After one year from the entry into force of the decision of the Court of Honour of Property or Business Valuers to impose a disciplinary sanction, the property or business valuer shall be considered to have not been imposed any such sanction.

6. Unless any of the infringements laid down in paragraph 1 of this Article are established during the hearing of a disciplinary action against a property or business valuer, the disciplinary proceedings against the property or business valuer shall be closed.

7. The Court of Honour of Property or Business Valuers must pass its decision not longer than within 60 days from the initiation of a disciplinary action against a property or business valuer. Unless the Court of Honour of Property or Business Valuers passes a decision not longer than within 60 days from the initiation of the disciplinary action against the property or business valuer, the disciplinary proceedings against the property or business valuer shall be deemed closed. If the Property Valuation Oversight Agency has adopted a decision to impose the sanctions stipulated in this Law on the property or business valuer for the infringements laid down in paragraph 1 of this Article, no disciplinary sanction shall be applied in respect of the property or business valuer, and the disciplinary proceedings against the property or business valuer shall be deemed closed.

8. Decisions of the Court of Honour of Property or Business Valuers shall be binding on property or business valuers, property or business valuation companies and the Property Valuation Oversight Agency.

9. Having adopted a decision to impose a disciplinary sanction, the Court of Honour of Property or Business Valuers must, not longer than within ten working days of the date of adoption thereof, submit the decision to the Property Valuation Oversight Agency, which shall, not longer than within three working days of the date of submission of the decision to the Property Valuation Oversight Agency, notify the property or business valuer of the adopted decision in writing (by registered mail), enclosing a copy of the decision by the Court of Honour of Property or Business Valuers endorsed by the Property Valuation Oversight Agency. An endorsed copy of the decision by the Court of Honour of Property or Business Valuers shall also be dispatched (by registered mail) to a property or business valuation company or a legal person established in the Republic of Lithuania, or any branches thereof, that employ the property or business valuer who is the subject of the relevant decision.

10. Extracts from decisions by the Court of Honour of Property or Business Valuers shall, not longer than within three working days of the date of receipt of the relevant decision by the Property Valuation Oversight Agency, be published in the file of a property or business valuer who is the subject of the decision by the Court of Honour of Property or Business Valuers, which is available in the Computerised Data Processing and Searching System of Property or Business Valuers and Property or Business Valuation Companies. After the entry into force of the decision by the Court of Honour of Property or Business Valuers, its extract shall be published on the website of the Property Valuation Oversight Agency. It shall be accompanied by the note regarding the date as of which the property or business valuer shall be considered to not have been imposed a disciplinary sanction.

11. The contents of an extract of a decision by the Court of Honour of Property or Business Valuers published on the Property Valuation Oversight Agency’s website shall contain the following details:

1) the full name of a property or business valuer;

2) the number/numbers of the qualification certificate of a property or business valuer, except for independent property or business valuers from another Member State engaging in valuation of property or business in the Republic of Lithuania on a temporary or one-time basis;

3) the date of adoption of the decision by the Court of Honour of Property or Business Valuers or the date of closing of the disciplinary proceedings against the property or business valuer;

4) the sanction imposed by the Court of Honour of Property or Business Valuers specified in paragraph 4 of this Article, or any of the circumstances referred to in paragraph 6 and 7 of this Article.

12. Extracts from decisions by the Court of Honour of Property or Business Valuers shall be published on the Property Valuation Oversight Agency’s website only during the period of validity of the disciplinary sanctions imposed on property or business valuers.

13. Decisions by the Court of Honour of Property or Business Valuers shall enter into force upon the expiry of the time limit for appealing against them, unless they have been appealed against. In the event of appealing against a decision by the Court of Honour of Property or Business Valuers, the decision shall come into effect upon the entry into force of the court decision where such decision upholds the decision of the Court of Honour of Property or Business Valuers.

Article 30. Procedure for appealing against decisions by the Court of Honour of Property or Business Valuers and the Property Valuation Oversight Agency

1. Appeals against decisions by the Court of Honour of Property or Business Valuers may be made to Vilnius Regional Administrative Court within 30 days of the dispatch (by registered mail) of the decision to a property or business valuer and the publication of an extract from the decision in the file of the property or business valuer who is the subject of the decision by the Court of Honour of Property or Business Valuers, which is available in the Computerised Data Processing and Searching System of Property or Business Valuers and Property or Business Valuation Companies.

2. The Property Valuation Oversight Agency’s decisions shall be appealed against to Vilnius Regional Administrative Court within 30 days of their publication on the Property Valuation Oversight Agency’s website.

I promulgate this Law passed by the Seimas of the Republic of Lithuania.

PRESIDENT OF THE REPUBLIC DALIA GRYBAUSKAITĖ