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        Terms 'land' 'land lot' have different interpretations. While the term land lot as a subject of the land relations is interpreted as a parcel of land with certain boundaries and location owned or meant to be owned by someone (page 79 of the Land Code of Ukraine), a boader meaning is implied by the term land.

        Today valuation is carried out based on License on Land Measuring and Valuation Works, series 777296, issued by the State Committee on the Land Resources of Ukraine on October 21, 2004 and based on the Guidelines on the Expert Monetary Appraisal of Land Lots # 1531, ratified by the Decree of the Cabinet of Ministers of Ukraine on October 10, 2002.

        The subjects of the monetary appraisal are land lots or their parts defined by a certain location and certain proprietary rights.

        
The principles of the land lots appraisal are as follows:

• Benefit principle. Market value is possessed by the land lots capable of satisfying their owners need within a certain period of time.
• Principle of surrogation. The market value cannot exceed the most feasible costs to be born for the purchase of the property with the same utility equivalent.
• Principle of demand and supply. Market value depends on the supply and demand ratio existing on the market and on the nature of competition among buyers and sellers.
• Principle of expectation. Market value depends on the expected value and terms of receiving the income from the land lot within a certain period of time provided its highest and best use, without taking into consideration other production factors involved in business activities carried out on the land lot.
• External influence principle. Market value depends on the land lot location and the impact of the external factors the land lot is exposed to.
• Principle of change. Market value changes over time and shall be determined as of a certain date.
• Highest and best use principle. Market value is determined based on the highest and best use of the land lot or on the most feasible use corresponding to the legislation and being physically possible, economically supported, financially feasible and resulting in the highest value of the land lot.


        There are different categories of the land lots for appaisal. They are as follows: land lots belonging to horticultural communities and cooperative societies, holiday villages, agricultural and urban lands.

        The market value of the land lot depends primarily on its location and the impact of the exterior factors, as well as on the demand and supply ration on the market and the nature of the competition among sellers and buyers. The market price cannot exceed the most feasible costs required for purchasing another land lot with the same utility. Besides, the market value depends on the expected amount, terms, and probability of obtaining the revenue from the land lot, provided its highest and best use.

        The market value of the land lot varies over time and the valuation is always performed as of the certain date.

        The land valuation is performed for the purpose of contribution to statutory capital of companies, for collateral purposes (mortgage), pricing at purchases and sales, as well as for other purposes in line with the current law.




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