Does your new valuation role in your home show a significant increase? Excessive error or increase? You can challenge your property valuation but before you begin, be knowledgeable.
As the owner of a residence, you receive a property valuation roll every three years. This role indicates the estimated value of your property at the time of the municipal valuation that is made one and a half years before it takes effect.
Because the appraiser can only visit each property every three years, it makes a mass valuation. It groups the residences of the same size located in the same neighborhood, and then determines their market value according to the real estate transactions concluded in this sector. It therefore does not take into account the particularities of each. Also, a poorly maintained house could be overvalued compared to the average value of its neighborhood, while a hyper-renovated home could be undervalued.
It is known that property valuation is the basis for determining the amount of school and municipal taxes. The higher the value of a property, the higher the tax payable. Hence the importance of ensuring that the valuation reflects the exact value of the house.
Obviously, there must be a serious reason for challenging the property valuation. To say that one finds one’s taxes account too high or that the valuation of one’s neighbor is less than ours are insufficient arguments. To succeed, it takes more than a mere disagreement with the decision of the assessor of the municipality. It is necessary to demonstrate, with proof, why the valuation of his residence does not reflect reality.
To help you, compare your property with properties similar to yours that were sold in your neighborhood during the evaluation period. Ask yourself if you could have sold your home at a comparable price. If the gap between your municipal valuation and the market value is significant, you certainly have a good argument to make a request to review the valuation.
But be careful: you must also take into account the characteristics of your residence to justify the request for reduction or increase in the property value. If it requires major repairs due to its condition (roof and windows in poor condition, major foundation cracks, heavy water infiltration, pyrite, etc.) or if it is backed by a noisy or polluting plant, Can rely on these peculiarities to show that it is worth less than similar houses. On the other hand, if you have carried out construction or major renovations, it will suffer a greater or lesser increase in value.
Clearly, determine the most and least of your property. Based on these facts, judge whether the value on the roll reflects the actual value of your home on the date of the valuation. To make it easier for you to do this, have a certified appraiser. For a certain fee, it will determine the fair value of your home. Its evaluation will be used to support your request for review. Have you accumulated enough evidence? So, do not hesitate to dispute an evaluation too high. If you succeed, the property value of your home will be reduced for three years and, in turn, your taxes also. On the contrary, the land value is too low? Also apply for a review if you intend to sell your property. Because valuation can have an impact on the sale of a property. If the valuation is significantly lower than the sale price, potential buyers will think that the amount requested is exaggerated, which could be detrimental to the transaction. The reverse is also true. If the tax bill is exaggerated, it will cause them to flee. It is therefore imperative to make sure that the property value of your residence is as accurate as possible.
Do you feel that your property has not been properly assessed? To challenge your new municipal valuation, you must complete a Municipality valuation Roll Review application form in which you will present the facts that you believe justify a change in the value of your home. You have until April 30 of the first year of application of the valuation roll to file your application in person or by registered mail. Note that you will have to pay an administrative fee. These vary depending on the value of the property.
The person responsible for the valuation must respond to your request in writing no later than September 1 of the same year. However, this period may be extended. If this person agrees, he will send you a proposed change. If you accept it, the role will be changed. If you refuse to change the role or if the amendment is not appropriate, you can appeal your case to the Tribunal administratif du Québec. You have 60 days from the date of dispatch of the evaluator’s response to file a written request with the Tribunal’s secretariat. However, new fees will be charged. After reviewing the arguments of the municipality and yours, the Tribunal will generally render its verdict within three months of the hearing.
Good to know: if during the three-year period foreseen for the application of the role an event justifying a change occurs (fire, significant physical deterioration of the property, etc.), the evaluator is required to modify the role Consequently. If you fail to do so, you may file an application for review no later than December 31 of the fiscal year following the event. On the other hand, if the municipal assessor changes the role during the three-year period – for example, because of a major renovation – you can also file a review application, this time within 60 Days after the notice of change is sent.