REPUBLIC OF LITHUANIA
LAW ON AMENDMENT
OF THE LAW ON BASES OF PROPERTY AND BUSINESS VALUATION
22 June 2011 No XI-1497
Vilnius
(Official Gazette Valstybės Žinios, 1999, No 52-1672; 2003, No 38-1673)
Article 1. The new wording of the Law on Bases of Property and Business Valuation of the Republic
of Lithuania
The Law on Bases of Property and Business Valuation shall be amended to read as follows:
“REPUBLIC OF LITHUANIA
LAW
ON BASES OF PROPERTY AND BUSINESS VALUATION
CHAPTER ONE
GENERAL TERMS AND CONDITIONS
Article 1. Purpose of the Law
This Law shall establish the principles for measuring the value of property or business, the bases for and cases of
measuring the value of property or business, the bases for and regulation of operation of property or business
appraisers and property or business valuation companies, the rights, duties, and responsibilities of property or
business appraisers and property and business valuation companies, and the requirements for property or
business appraisers and property or business valuation companies. Other laws of the Republic of Lithuania shall
apply to property or business appraisers and property or business valuation companies to the extent their
operations are not regulated by this Law.
Article 2. Key Terms and Definitions of the Law
1. Replacement value of property is the estimated amount of money required to re-create, reproduce or
reconstruct (outfit) subject property of the same physical and operational qualities.
2. Individual valuation of property or business means valuation of property or business, considering its individual
attributes on a certain day, following an appropriate property or business valuation approach in the manner
established in the Property and Business Valuation Methodology.
3. Movable property (movable item) means property (an item) that can be moved from one place to another
without modifying its function and significantly reducing its value, unless the law provides to the contrary.
4. Mass property valuation is simultaneous valuation of homogenous property (items defined by their specific
attributes), considering the condition of the property at a certain date, following an appropriate property or
business valuation approach in the manner established in the Property and Business Valuation Methodology, and
with reference to the legislation that regulates this type of 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 modifying their function and significantly reducing their value, as well as property
(movable items) that is recognised as immovable by the rule of law.
6. Non-compulsory property or business valuation means valuation of property or business done at the client’s
initiative, on the basis of an agreement between the client and a property or business valuation company or an
independent property or business appraiser.
7. Compulsory property or business valuation means valuation of property or business done in cases provided for
in the legislation of the Republic of Lithuania in order to secure a public interest.
8. Special-purpose property is property that serves a special function, is of limited demand and therefore sells
rarely, or is not marketable and therefore does not sell at all.
9. Property means tangible, intangible and financial assets that may be the subject of market transactions.
10. Market value of property or business is the estimated amount for which an asset should exchange on the
date of valuation between a willing buyer and a willing seller in an arm’s–length transaction after proper
marketing wherein the parties had each acted knowledgeably, prudently, and without compulsion.
11. Value of property or business (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, following the
procedure and in the manner identified in the Property and Business Valuation Methodology.
12. Property or business valuation means establishing the value of property and/or business using an appropriate
property or business valuation approach, following the procedure and in the manner identified 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 entity or any other organisation incorporated in the Republic of Lithuania or
another Member State, or any branches thereof, to safeguard performance of the direct functions of the legal
entity or any other organisation incorporated in the Republic of Lithuania or another Member State, or any
branches thereof, other than valuation of property or business under property or business valuation contracts
with clients.
14. Property or business valuation company means a legal entity or any other organisation incorporated in the
Republic of Lithuania or any other Member State, or any branches thereof, engaging in property or business
valuations in the manner prescribed by the laws of the Republic of Lithuania.
15. Property and business valuation methodology means legislation adopted by the government of the Republic
of Lithuania or any other institution authorised by it, which regulates the procedure and manner of application of
property and business valuation approaches embedded in the International Valuation Standards and the
European Valuation Standards in the Republic of Lithuania, in cases envisaged in said standards.
16. Client of the property or business valuation service (the client) means a private individual, a legal entity or
any other organisation or its branches that, pursuant to their regulations, are entitled to enter into contracts,
which have entered into a property or business valuation contract with a property or business valuation
company.
17. Property or business appraiser means a citizen of the Republic of Lithuania or any other Member State or any
other private individual, who exercises the rights of movement across the Member States vested to them by the
legislation of the Republic of Lithuania and engages in valuations of property or business.
18. Qualification certificate of the property or business appraiser is a document issued to a private individual by a
state regulator of property or business appraisers and property or business valuation companies commissioned
as such by the government of the Republic of Lithuania that certifies the qualifications of that person as an
appraiser of property or business specialising in a particular field.
19. Professional ethics code of property or business appraisers means legislation adopted by the government of
the Republic of Lithuania or any other institution authorised by it that establishes the standards of professional
conduct that apply to all property or business appraisers.
20. Price of property is the amount of money that has been asked, offered or paid for the property.
21. Property value in use is the estimated amount of money benefits that an asset generates for a specific
owner.
22. Member State is a member of the European Union, a state within the European Economic Area, or the Swiss
Confederation.
23. Business means activity of a private individual, legal entity or any other organisation or its branches, which is
aimed at earning income and profit through 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 entities or any other organisations incorporated in the Republic of Lithuania or another Member State, or
their branches performing property or business valuation for their internal purposes;
4) property or business appraisers.
Article 4. Cases of Property or Business Valuation
Property or business shall be valued:
1) in cases provided for in the laws and legislation (compulsory valuation of property or business);
2) for internal purposes;
3) in other cases as per client’s request.
Article 5. Principles of Calculating the Value of Property or Business
1. The value of property or business shall be determined as follows:
1) based on the logics and criteria of market economy, the results of market and economic condition research
and observation; the application of such results is covered in detail in 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, reasonable expectations and interests, prudence and caution, replacement of
property or business and alternative use of property or business, which are covered in detail in 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 operated sensibly.
3. The value of property or business may be determined on the basis of:
1) sales transactions;
2) the cost to create (re-create) property or business;
3) income that the property or business generates;
4) other bases of property or business valuation 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 established under the European
Valuation Standards and in cases identified therein.
2. The procedure of application 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
spelled out in the Property and Business Valuation Methodology.
CHAPTER TWO
PROPERTY OR BUSINESS APPRAISERS AND PROPERTY OR BUSINESS VALUATION COMPANIES
Article 7. Classification of Property or Business Appraisers
Property or business appraisers shall be classified as follows:
1) an independent property or business appraiser (an external property or business appraiser), an appraiser of
property or business, an employee of a property or business valuation company or the owner of a private
property or business valuation company or a real member of a property or business valuation partnership, who
appraises 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 is a holder of a private
practice certificateand appraises property or business on the basis of contracts with clients and in cases
envisaged in the legislation of the Republic of Lithuania;
2) an internal property or business appraiser, an appraiser of property or business, an employee of a legal entity
or any other organisation incorporated in the Republic of Lithuania or another Member State, or branches
thereof, or the owner of a private company or a real member of a partnership who appraises property or
business for the interior purposes of a legal entity or any other organisation incorporated in the Republic of
Lithuania or another Member State, or branches thereof.
Article 8. General Requirements for Property or Business Apparaisers
A property or business appraiser may be a private individual who:
1) is deemed to be of immaculate repute for the purposes of Article 9.13 hereof;
2) has a university degree in mathematics, statistics, or informatics in the field of physical sciences, general
engineering, civil engineering, manufacturing engineering, engineering and 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 real estate appraiser (lowest-level qualification), appraiser
(higher-level qualification), or expert appraiser (highest-level qualification); mathematics, statistics, and
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
qualifyas an assistant movable property appraiser (lowest-level qualification), appraiser (higher-level
qualification), or expert appraiser (highest-level qualification); and economics, business, management, or
business and management in the field of social sciences to qualify as an assistant business appraiser (lowestlevel qualification), appraiser (higher-level qualification), or expert appraiser (highest-level qualification);
3) has experience relating to property valuations to qualify as an assistant property appraiser (lowest-level
qualification), or experience relating to business valuations to qualify as an assistant business appraiser (lowestlevel qualification);
4) has been qualified, for three years or more, as an assistant real estate or movable property appraiser (lowestlevel qualification) to qualify as an appraiser of real estate or movable property, respectively, or a business
appraiser (higher-level qualification), or has been qualified, for seven years or more, as a real estate or movable
property or business appraiser (higher-level qualification) to qualify as an expert appraiser of real estate or
movable property, or an expert business appraiser (highest-level qualification), and has at least three years of
experience in conducting real estate or movable property or business valuations to qualify as an appraiser of real
estate of movable property, respectively, or a business appraiser (higher-level qualification), or at least seven
years of experience in conducting real estate or movable property or business valuations and has prepared at
least 50 property or business reports, respectively, to qualify as an expert appraiser of real estate or movable
property, or a business appraiser (highest-level qualification);
5) has passed the qualifying examination of property or business appraiser in the manner prescribed by the
Rules for Holding Property or Business Appraiser Qualifying Examinations as approved by the minister of finance.
Article 9. Qualification of Property or Business Appraisers
1. A private individual who has passed the qualifying examination of property or business appraiser shall be
awarded the qualification of assistant appraiser (lowest-level qualification), appraiser (higher-level qualification),
or expert appraiser (highest-level qualification) of real estate, movable property, or a business area (“property or
business appraiser’s qualification”) and shall have a qualifying certificate of a property or business appraiser
issued, with the exception of the case spelled out in Article 11 of this Law. The property or business appraiser’s
qualification shall be awarded and the qualifying certification of a property or business appraiser shall be issued
by a state regulator of property or business appraisers and property or business valuation companies
commissioned as such by the government of the Republic of Lithuania (“the Regulator”), following the procedure
prescribed in the Rules for the Issuing and Effect of the Qualifying Certificate of Property or Business Appraiser
as approved by the minister of finance. The list of property or business appraisers who have a valid qualifying
certificate of property or business appraiser shall be published by the Regulator on its website.
2. The qualifying certificate of property or business appraiser shall bear the following details:
1) the number of the qualifying certificate of property or business appraiser;
2) the full name of the property or business appraiser;
3) the area of real estate or movable property or business valuation;
4) the qualification of an assistant appraiser (lowest-level qualification) or an appraiser (higher-level qualification)
or an expert appraiser (highest-level qualification);
5) the date when property or business appraiser’s qualification was awarded;
6) the state regulator of the property or business appraiser and the issuing institutions.
3. The qualifying certificate of property or business appraiser shall be signed by the manager of the issuing
institution and shall be endorsed with the seal of the institution.
4. The qualifying certificate of property or business appraiser shall also bear an image of the property or
business appraiser’s face.
5. Property or business appraisers shall be examined by the qualifying examination panel for property or
business appraisers (“the examination panel”). The examination panel shall have 5 members, including its
chairperson (three members being proposed by the Regulator and one by the Ministry of Finance of the Republic
of Lithuania (“the Ministry of Finance) and higher schools of the Republic of Lithuania (“higher schools”) each).
6. To have one member of the examination panel appointed by the Ministry of Finance, the Regulator shall
approach the Ministry of Finance, which shall provide it with a list of three candidates – state officials – for the
examination panel.
7. To have one member of the examination panel appointed by higher schools, the Regulator shall approach
umbrella organisations of higher schools to provide a list of three candidates for the examination panel.
8. Representatives nominated by the Regulator may be members of an exclusive umbrella association of property
and/or business appraisers, and/or property or business appraisers employed with an exclusive umbrella
association of property or business valuation companies, or the owners of private companies – members of this
association, or real members or partnerships who have the property or business appraiser’s qualification.
Exclusive umbrella associations of property and/or business appraisers and/or property or business valuation
companies shall, by mutual consent, nominate three of their members who have the property or business
appraiser’s qualification in each area of property or business valuation as candidates to be nominated by the
Regulator, provided written consent from such members.
9. A separate examination panel shall be made up for the qualifying examination of each area of property or
business evaluation. The constitution of the examination panel shall be approved and its chairperson appointed
by the finance minister from among the individuals specified in the summary list of candidates for the
examination panel as provided by the Regulator, observing the proportions spelled out in paragraph 3 of this
Article. The same individual may be a member of the examination panel for the qualifying examinations of
property or business appraiser in several areas of property or business valuation. Upon resignation, removal or
revocation of a member of the examination panel, the Regulator shall update the summary list of candidates for
the examination panel in the manner laid down in paragraphs 6, 7 and 8 of this Article.
10. The term of office of a member of the examination panel shall be two years. The term of office of a member
of the examination panel shall commence on the effective date of the order regarding the approval of the panel
or the appointment of another member from the minister of finance. The same individual may only be appointed
member of the examination panel for two consecutive terms of office. A member of the examination panel 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 panel, prior to expiry of
their term of office. To fill the position of a member of the examination panel who has resigned, been removed
or recalled, the minister of finance shall appoint another member from the summary list of candidates for the
examination panel, observing the proportions specified in paragraph 5 of this Article.
11. 30 days to the end of the term of office of a member of the examination panel, new candidates to sit on the
examination panel for the next term of office shall be proposed in the manner stipulated in paragraphs 5, 6, 7
and 8 of this Article. For the purposes of nominating members of the examination panel for the next term of
office, unless the associations spelled out in paragraph 8 of this Article do not propose their candidates to serve
as members of the examination panel to the Regulator, shall be nominated by the Regulator from among the
members (property or business appraisers) of the most numerous exclusive umbrella associations of property or
business appraisers and/or property or business valuation companies, provided consent from such members.
12. A candidate for the examination panel shall:
1) have a university or an equivalent degree in any of the fields specified in the Rules for Holding Property or
Business Appraiser Qualifying Examinations;
2) know this Law, the International Valuation Standards, the European Valuation Standards, the Property and
Business Valuation Methodology and other legislation regulating valuations of property or business and the
activities of property or business appraisers and property or business valuation companies;
3) be of immaculate repute;
4) be qualified as an appraiser (higher-level qualification) or expert appraiser (highest-level qualification), when
that person is nominated by the Regulator;
5) have more than three years of experience of working as a public official, be engaged or involved in drafting
bills regulating property or business valuations, when that person is nominated by the Ministry of Finance;
6) have at least three years of experience of teaching in the fields specified in the Rules for Holding Property or
Business Appraiser Qualifying Examinations and be qualified at least as an appraiser (higher-level qualification),
when that person is nominated by higher school umbrella associations.
13. A person shall not be deemed to be of immaculate repute if they have been:
1) tried and convicted for a grievous or very grievous offence against property, ownership rights, ownership
interests, security of electronic data or information systems, economy, the order of business, the financial
system, public office or public interests, regardless of whether the conviction has disappeared, or has been lifted
or not, as well as tried and convicted for other offences when the conviction has not yet disappeared;
2) terminated on the grounds of any violation of working discipline or removed from a public office for servicerelated misdemeanour within the past three years.
14. The members of the examination panel shall follow the Working Regulations of the Examination Panel for the
Qualifying Examination of Property or Business Appraiser. The members of the examination panel shall adhere to
the integrity declaration in the form and content established in the Rules for Holding Property or Business
Appraiser Qualifying Examinations. If the integrity declaration presented by a member of the examination panel
is found to be misleading, that member shall be removed as a member of the examination panel in the manner
prescribed in the Working Regulations of the Examination Panel for the Qualifying Examination of Property or
Business Appraiser as approved by the minister of finance. The examination panel shall pass its decision on
whether the qualifying examination of property or business appraiser has been passed or not. An appeal against
the actions of the examination panel may be filed to the Regulator within five business days of the date of the
respective action. This deadline may be extended by decision of the Regulator if, in the Regulator’s reasonable
opinion, the deadline for making an appeal against a decision of the examination panel has been missed for
material reasons (such as breakdowns in communications due to an epidemic, enemy assault, excessive flooding
or any other calamity, an illness of the person appealing against the decision of the examination panel for the
qualifying examination of property or business appraiser as diagnosed by a healthcare establishment, the death
of their any of their family members or next-of-kin, or an abrupt condition that may threaten their lives). Appeals
against decisions of the examination panel shall be processed by the Regulator in the manner prescribed in the
Rules for Examining Appeals Against Decisions of the Examination Panel for Qualifying Examination of Property
or Business Appraiser.
15. The decision to award the qualification of an assistant appraiser (lowest-level qualification) or appraiser
(higher-level qualification) or expert appraiser (highest-level qualification) and to issue a property or business
appraiser’s qualifying certificate shall be made by the Regulator within 10 business days of the period of time
allowed for appeals against the examination panel’s decisions, and shall be published on the Regulator’s website.
Article 10. Validity of the Property or Business Appraiser’s Qualifying Certificate
1. The property or business appraiser’s qualifying certificate shall be issued for an unlimited duration.
2. The qualifications of a property or business appraiser shall be subjected to an audit when the Honorary Court
of Property or Business Appraisers imposes a disciplinary sanction as specified in Article 29.4.3 of this Law. The
qualifications audit shall involve the holding, in line with the Rules for Holding Property or Business Appraiser
Qualifying Examinations, of the examination at the highest level of qualification of property or business appraiser
that the property or business appraiser has.
3. The validity of a property or business appraiser’s qualifying certificate shall be suspended:
1) when the Honorary Court of Property or Business Appraisers passes a decision to impose a disciplinary
sanction as specified in Article 29.4.3 of this Law – upon the expiry of the period of time allowed for appeals
against such a decision, if no appeal was made against the decision of the Honorary Court of Property or
Business Appraisers, or after the court decision ruling towards the enforcement of the decision of Honorary Court
of Property or Business Appraisers to impose a disciplinary sanction as specified in Article 29.4.3 of this Law has
entered into effect;
2) if, upon receipt (by registered mail) of a written inquiry from the Regulator, the property or business appraiser
refuses or fails, within an established period of time and outside of the existence of any of the material reasons
spelled out in paragraph 14 of this Article 9, to issue an explanation regarding a property or business valuation
conducted by the property or business appraiser;
3) if, at the end of a calendar year, the property or business appraiser fails to provide the Regulator, within a
period of three months and in the manner prescribed in the Rules for the Issuing and Effect of the Qualifying
Certificate of Property or Business Appraiser, with a property and/or business valuation activity and qualifications
improvement report without there being any of the material reasons laid down in paragraph 14 of this Article 9;
4) if the property or business appraiser has, for the past three years and outside of the existence of any of the
material reasons spelled out in paragraph 14 of this Article 9, failed to improve their qualifications in the areas
indicated in the Description of Requirements for the Education, Professional Experience, and Qualification
Improvement of Property or Business Appraiser and, upon receipt (by registered mail) of a written inquiry from
the Regulator, has failed to produce documents to support the fact of qualification improvement;
5) when the property or business appraiser is found, by a valid court judgement, guilty of any of the offences
spelled out in Article 9.13.1 of this Law,. In any of these cases, the property or business appraiser’s qualifying
certificate shall be suspended until the conviction of the property or business appraiser regarding the offences
spelled out in Article 9.13.1 of this Law, with the exception of grievous or very grievous offences against
property, ownership rights, ownership interests, security of electronic data or information systems, economy, the
order of business, the financial system, public office, or public interests, disappears;
6) when the property or business appraiser files a request to suspend the validity of the qualifying certificate of
property or business appraiser.
4. Suspension of validity of the qualifying certificate of property or business appraiser shall render the property
or business appraiser’s right to carry out valuations of property or business void, yet the property or business
appraiser shall be bound by any and all duties and obligations of the property or business appraiser as specified
in Article 15 of this Law, other than the duties and obligations set forth in Article 15.1.3, Article 15.4.3, and
Article 15.4.4.
5. Suspension of validity of the qualifying certificate of property or business appraiser shall be reversed if the
reasons that caused the suspension of validity of the qualifying certificate of property or business appraiser are
removed within a period of six months, unless the validity of the qualifying certificate of property or business
appraiser was suspended for reasons set forth in paragraphs 3.1, 3.5, and 3.6 of this Article. For the purposes of
paragraphs 3.2, 3.3, and3.4 of this Article, if the validity of the qualifying certificate of property or business
appraiser is suspended, the reason that caused the suspension shall be deemed removed when the property or
business appraiser files with the Regulator a document supporting the removal of the cause for the suspension
or a copy thereof (accompanied by the original document for comparison purposes), unless this document is
issued by the Regulator, and a request to reverse the suspension of the validity of the qualifying certificate of
property or business appraiser. If the validity of the qualifying certificate of property or business appraiser was
suspended for the reason specified in paragraph 3.1 of this Article, the reason that caused the suspension shall
be deemed removed when the property or business appraiser passes the qualifying examination of property or
business appraiser in the manner stipulated in paragraph 2 of this Article and files a request to reverse the
suspension of his qualifying certificate of property or business appraiser. If the validity of the qualifying
certificate of property or business appraiser was suspended for the reason specified in paragraph 3.6 of this
Article, the suspension of the validity of the qualifying certificate of property or business appraiser shall be
reversed when the property or business appraiser files a request to reverse the suspension of his qualifying
certificate of property or business appraiser.
6. The qualifying certificate of property or business appraiser shall be revoked:
1) upon the death of the property or business appraiser;
2) when the property or business appraiser files a request to revoke his qualifying certificate of property or
business appraiser;
3) when the validity of the qualifying certificate of property or business appraiser is suspended for a second time
during a period of consecutive three years for reasons other than those spelled out in paragraph 3.6 of this
Article;
4) if the property or business appraiser who has had their qualifying certificate suspended fails, over a period
longer than six months, to remove the reasons that caused the suspension of the qualifying certificate of
property or business appraiser, unless the qualifying certificate of property or business appraiser was suspended
for reasons spelled out in paragraphs 3.1, 3.5, and 3.6 of this Article, or fails,over a period longer than 11
months, to pass the qualifying examination of property or business appraiser at the highest level of qualification
of property or business appraiser that the property or business appraiser has, according to the Rules for Holding
Property or Business Appraiser Qualifying Examinations;
5) when the Honorary Court of Property or Business Appraisers passes a decision to impose a disciplinary
sanction as specified in Article 29.4.4 of this Law – upon the expiry of the period of time allowed for appeals
against such a decision, if no appeal was made against the decision of the Honorary Court of Property or
Business Appraisers, or after the court decision ruling towards the enforcement of the decision of Honorary Court
of Property or Business Appraisers to impose a disciplinary sanction as specified in Article 29.4.4 of this Law has
entered into effect;
6) when the property or business appraiser is found, by a valid court judgement, guilty of any grievous or very
grievous offence against property, ownership rights, ownership interests, security of electronic data or
information systems, economy, the order of business, the financial system, public office, or public interests.
7. The decision to suspend the qualifying certificate of property or business appraiser for reasons other than
those specified in paragraphs 3.1 and 3.5 of this Article, to reverse the suspension thereof for reasons other than
those specified in paragraph 3.5 of this Article, or to revoke the qualifying certificate of property or business
appraiser for reasons other than those specified in paragraphs 6.5 and 6.6 of this Article shall be made by the
Regulator within three business days of the date when the bases spelled out in this Article become evident.
8. The decision to suspend the qualifying certificate of property or business appraiser for reasons specified in
paragraph 3.1 of this Article or to revoke the qualifying certificate of property or business appraiser for reasons
specified in paragraph 6.5 of this Article shall be made by the Honorary Court of Property or Business Appraisers.
9. The decision to suspend the qualifying certificate of property or business appraiser for reasons specified in
paragraph 3.5 of this Article or to revoke the qualifying certificate of property or business appraiser for reasons
specified in paragraph 6.6 of this Article shall be made by the court investigating the case.
10. The decisions spelled out in paragraphs 7, 8, and 9 of this Article shall be published by the Regulator on its
website within three business days of the date when the respective decision is made.
11. The qualifying certificate of property or business appraiser shall be deemed suspended, or its suspension
reversed, or the qualifying certificate of property or business appraiser revoked as of the moment of the
respective decision to suspend the qualifying certificate of property or business appraiser, reverse the
suspension, or revoke the qualifying certificate of property or business appraiser being published on the
Regulator’s website, or the decisions of the Honorary Court of Property or Business Appraisers to impose the
disciplinary sanctions specified in Articles 29.4.3 and 29.4.4 of this Law entering into effect, or, in the cases
specified in paragraph 3.5 or 6.6 of this Article, the respective court judgement entering into effect, or, in the
case of paragraph 3.5 of this Article, the conviction regarding the offences spelled out in paragraph 9.13.1 of this
Article, other than grievous or very grievous offence against property, ownership rights, ownership interests,
security of electronic data or information systems, economy, the order of business, the financial system, public
office, or public interests, disappearing. In the cases above listed, all of the qualifying certificates of property or
business appraiser held by the property or business appraiser in question shall be considered suspended or
revoked, or their suspension reversed.
Article 11. Recognition of Professional Qualifications of Property or Business Appraisers from other
Member States
1. The professional qualifications of property or business appraisers from other Member States who intend to
engage in valuations of property or business in the Republic of Lithuania on incorporated or temporary basis shall
be recognised in the manner prescribed by the government of the Republic of Lithuania (“the government”) or
any other institution authorised by it.
2. The Regulator shall refuse to recognise the qualifications of a property or business appraiser from another
Member State who intends to engage in valuations of property or business in the Republic of Lithuania on
temporary or one-time basis in the event the property or business appraiser in question has been subjected to
the disciplinary sanctions specified in Article 29.4.3 of this Law, until the property or business appraiser
undergoes an audit of qualifications and passes the qualifying examination of property or business appraiser at
the highest level of qualifications that the property or business appraiser had, following the Rules for Holding
Property or Business Appraiser Qualifying Examinations. If the property or business appraiser engaging in
valuations of property or business in the Republic of Lithuania on temporary or one-time basis who has been
subjected to the disciplinary sanctions specified in Article 29.4.3 of this Article fails to pass the qualifying
examination of property or business appraiser at the highest level of qualifications that the property or business
appraiser had, following the Rules for Holding Property or Business Appraiser Qualifying Examinations over a
period longer than 11 months, their right to engage in valuations of property or business in Lithuania shall be
revoked. The decision to revoke the right to engage in valuations of property or business shall be made by the
Regulator.
Article 12. Requirements for Persons Intending to Engage in Valuations of Property or Business
1. A legal entity or any other organisation incorporated in the Republic of Lithuania, or any branches thereof, or
an independent property or business appraiser shall be entitled to engage in valuations of property or business
provided they satisfy the following requirements:
1) at least one property or business appraiser who is qualified at least as an appraiser (higher-level qualification)
is employed, or the owner of a private company or a real member of a partnership is qualified at least as an
appraiser (higher-level qualification) for legal entities of other organisations incorporated in the Republic of
Lithuania or any other Member State, or any branches thereof intending to engage in valuations of property or
business, or qualified at least as an appraiser (higher-level qualification) for independent property or business
appraisers intending to engage in valuations of property or business;
2) compulsory third-party liability insurance is in place for legal entities or other organisations incorporated in the
Republic of Lithuania or any other Member State, or branches thereof, or independent property or business
appraisers intending to engage in valuations of property or business.
2. A legal entity incorporated in the Republic of Lithuania, or branches thereof, or an independent property or
business appraiser that satisfies the requirements laid down in paragraph 1 of this Article shall, in the manner
prescribed by the Rules for the Drawing, Handling, and Publication of the List of Persons and Entities Entitled to
Engage in External Valuations of Property or Business as approved by the minister of finance, be entered in the
List of Persons and Entities Entitled to Engage in External Valuations of Property or Business (“the List of External
Appraisers”) and shall be deemed to stand in conformity to the requirements laid down in paragraph 1 of this
Article on the next day after the date when their entry into the list is published on the Regulator’s website.
3. Legal entities incorporated in the Republic of Lithuania, or branches thereof, that engages in valuations of
property or business for internal purposes shall not be entered into the List of External Appraisers.
4. An independent property or business appraiser of another Member State shall be entitled to engage in
valuations of property or business if the Regulator recognises their professional qualification in line with the
procedure set by the government or another institution authorised by it, and if they have a compulsory thirdparty liability insurancecover in compliance to the requirements specified in Article 17.2 of this Law. A legal entity
or any other organisation incorporated in another Member State, or any branches thereof, shall be considered a
property or business valuation company and shall be entitled to engage in valuations of property or business if
the Regulator recognises the professional qualifications of the property or business appraiser employed by it in
line with the procedure set by the government or another institution authorised by it, and if it has a compulsory
third-party liability insurance cover in compliance to the requirements specified in Article 17.2 of this Law.
Article 13. The Drawing of the List of Persons and Entities Entitled to Engage in Valuations of
Property or Business
1. Before entering a legal entity incorporated in the Republic of Lithuania, or any branches thereof, or an
independent property or business appraiser in the List of External Appraisers, the Regulator shall have in its
possession:
1) anapplication, substantially in the form established in the Rules for the Drawing, Handling, and Publication of
the List of Persons and Entities Entitled to Engage in External Valuations of Property or Business, from the legal
entity incorporated in the Republic of Lithuania, or any branches thereof, or the independent property or
business appraiser for entry of the legal entity incorporated in the Republic of Lithuania, or any branches thereof,
or the independent property or business appraiser in the List of External Appraisers;
2) a copy of the compulsory third-party liability insurance policy of the legal entity incorporated in the Republic of
Lithuania, or any branches thereof, or the independent property or business appraiser presented to it by the
legal entity incorporated in the Republic of Lithuania, or any branches thereof, or the independent property or
business appraiser;
3) a copy of the incorporation certificate of the legal entity incorporated in the Republic of Lithuania, or any
branches thereof. The Regulator shall approach the Register of Legal Entities over the issue of a copy of this
certificate;
4) a written confirmation from the legal entity incorporated in the Republic of Lithuania, or any branches thereof,
regarding the property or business appraiser employed by the legal entity incorporated in the Republic of
Lithuania, or any branches thereof, or the owner of a private company who is a property or business appraiser,
or a real member of a partnership who is a property or business appraiser, who holds a valid qualifying certificate
of property or business appraiser, specifying the full name and the qualifying certificate number of the property
or business appraiser in question;
5) a copy of a private practice certificate. The Regulator shall approach the State Tax Inspectorate under the
Ministry of Finance of the Republic of Lithuania over the issue of a copy of this certificate.
2. The decision to enter a legal entity incorporated in the Republic of Lithuania, or any branches thereof, or an
independent property or business appraiser in the List of External Appraisers shall be made by the Regulator
within 10 business days of the date of receipt of the documents spelled out in paragraph 1 of this Article, and
shall be published on the Regulator’s website.
3. When a property or business appraiser valuation company or an independent property or business appraiser is
entered in the list of the List of External Appraisers, a notice to the effect shall be given on the website of the
Regulator, and an appropriate certificate shall be issued. The mandatory form of the certificate shall be approved
and the certificate issued by the Regulator.
4. The Regulator shall deny entry in the List of External Appraisers to a legal entity incorporated in the Republic
of Lithuania, or any branches thereof, or an independent property or business appraiser, and shall notify the
legal entity incorporated in the Republic of Lithuania, or any branches thereof, or the independent property or
business appraiser to the effect by registered mail within 10 business days of the date of receipt of documents of
copies thereof, if:
1) not all of the mandatory documents or copies thereof as specified in paragraph 1 of this Article have been
received;
2) the legal entity incorporated in the Republic of Lithuania, or any branches thereof, or the independent
property or business appraiser fails to conform to the requirements laid down in Article 12.1 and Article 17.2 of
this Law.
5. The Regulator shall strike a property or business valuation company or an independent property or business
appraiser from the List of External Appraisers if:
1) a property or business valuation company or an independent property or business appraiser files a request to
be struck out of the List of External Appraisers;
2) a legal entity incorporated in the Republic of Lithuania is wound up or its branch discontinues operation or the
Regulator adopts a decisions for reasons spelled out in Article 10.6.1 of this Law;
3) a property or business valuation company or an independent property or business appraiser fails to satisfy the
requirements specified in Article 12.1 of this Law;
4) a property or business valuation company or an independent property or business appraiser fails to satisfy the
requirements specified in Article 17.2 of this Law;
5) a property or business valuation company or an independent property or business appraiser fails to present
the Regulator with the report indicated in Article 15.2.1 and Article 15.4.5 of this Law when due, or the report
presented contains incomplete or misleading information specified in Article 15.2.1 and Article 15.4.5 of this Law,
and the Regulator has notified the property or business valuation company or the independent property or
business appraiser in writing (by registered mail) to the effect;
6) a property or business valuation company, standing in receipt (by registered mail) of a written inquiry form
the Regulator, refuses or, within the established period of time, fails to provide any explanation of documents
related to valuations of property or business that the property or business valuation company has conducted,
without there being any of the material reasons spelled out in Article 9.14 of this Law;
7) the qualifying certificate of property or business appraiser is suspended or revoked.
6. A property or business valuation company or an independent property or business appraiser shall be
considered struck out of the List of External Appraisers on the next day after the date of publication of the strikeout on the Regulator’s website.
7. A legal entity incorporated in the Republic of Lithuania, or any branches thereof, that has been struck out of
the List of External Appraisers may be re-entered in the list if the reasons for the strike-out have been
eliminated.
8. The decision to strike a property or business valuation company or an independent property or business
appraiser out of the List of External Appraisers shall be made by the Regulator in the manner prescribed by the
Rules for the for the Drawing, Handling, and Publication of the List of Persons and Entities Entitled to Engage in
External Valuations of Property or Business within 10 business days of the date when any of the circumstances
spelled out in paragraph 5 if this Article became evident, and shall be published on the Regulator’s website.
9. The List of External Appraisers shall be published on the Regulator’s website.
Article 14. Rights of Property or Business Valuation Companies and Property or Business Appraisers
1. A property or business valuation company or a property or business appraiser shall, for the purposes of
valuations of property or business, have the following rights to:
1) obtain from the client any information and data that may be required for the purposes of conducting a
valuation of property or business, and access governmental and corporate information as may be required for
the purposes of conducting a valuation of property or business;
2) 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
purposes of determining the value of the property or business;
3) hire necessary specialists and experts to carry out the valuation, subject to the client’s approval.
2. Based on the qualification level, a property or business appraiser shall have the following rights:
1) assistant appraiser – the right to conduct a valuation under the supervision of a property or business appraiser
who is qualified as an appraiser or an expert appraiser
2) appraiser – the right to appraise certain kinds of property or business independently;
3) expert appraiser – the right to appraise property of a certain field or business independentlywhen the client or
a property or business valuation company or other persons or entities are in dispute with regard to the
determination of the value of property or business and issue opinions on this matter or appraise certain types of
property or business independently.
3. The provisions of this Law shall apply to assistant property or business appraisers and expert property or
business appraisers to the extent they apply to property or business appraisers, unless it is otherwise provided
for on contradicts their rights laid down in paragraph 2 of this Article.
Article 15. Duties and Obligations of Property or Business Valuation Companies or Property or
Business Appraiser
1. A property or business valuation company or a property or business appraiser shall:
1) keep information obtained in the process of conducting a valuation of property or business, which, unless the
legislation regulating cases of property or business valuation provide otherwise, is related to the subject of the
property or business contract, the fulfilment of the contract and its outcomes confidential, and refrain from using
it for personal gain or that of other persons or entities;
2) disclose the information spelled out in paragraph 1.1 of this Article only in the cases provided for in the
legislation of the Republic of Lithuania and in the cases specified in paragraph 2.3 and paragraph 4.6 of this
Article;
3) when entering into property or business valuation contracts, on the client’s request, present the client with a
certificate of proof that the property or business valuation company or the independent property or business
appraiser has been entered in the List of External Appraisers; this stipulation shall not apply to independent
property or business appraisers or property or business valuation companies of other Member States that are
conducting valuations of property or business in the Republic of Lithuania on temporary or one-time basis.
2. A property or business valuation company shall:
1) within three months of the end of a calendar year, provide,in the manner prescribed by the Rules for the
Drawing, Handling, and Publication of the List of Persons and Entities Entitled to Engage in External Valuations of
Property or Business as approved by the minister of finance, the Regulator with a report on valuations of
property and/or business; this stipulation shall not apply to property or business valuation companies that are
conducting valuations of property or business in the Republic of Lithuania on temporary or one-time basis;
2) have a property or business appraiser who is qualified at least as an appraiser (higher-level qualification)
throughout the duration of the property or business valuation activities of the property or business valuation
company;
3) upon receipt (by registered mail) of an inquiry from the Regulator, provide it with explanations and documents
pertaining to the valuation of property or business (property or business valuation reports, and so on).
3. The report specified in paragraph 2.1 of this Article shall indicate the name, code number, domicile address,
legal status, legal form of the property or business valuation company, and contain details of its property and/or
business valuation activity over the reporting year, such as the number of property valuations by field and/or the
number of business valuations, income from valuations of property and/or business, a list of property or business
appraisers employed who have a qualifying certificate of property or business appraiser (stating their full names
and the numbers of their qualifying certificates), and a copy of the third-party liability insurance policy of the
property or business valuation company.
4. A property or business appraiser shall:
1) follow the Code of Professional Ethics of Property or Business Appraisers;
2) carry out their duties with honesty;
3) conduct valuations in a professional manner;
4) seek to improve their qualifications;
5) within three months of the end of a calendar year, provide, in the manner prescribed by the Rules for the
Issuing and Effect of the Qualifying Certificate of Property or Business Appraiser, the Regulator with a property
and/or business valuation activity and qualifications improvement report, stating the full name, contact details of
the property or business appraiser, the number of property valuations by field and/or the number of business
valuations (in the event the property or business appraiser conducted the property or business valuations on the
basis of being employed with a property or business company, or as the owner or real member of a property or
business company, the number of property or business valuations shall be given together with the name of the
property or business valuation company where such valuations were performed), as well as information about
the improvement of their qualifications; this stipulation shall not apply to independent property or business
appraisers of another Member State that are conducting valuations of property or business in the Republic of
Lithuania on temporary or one-time basis;
6) upon receipt (by registered mail) of an inquiry from the Regulator, provide it with explanations pertaining to
the valuations of property or business performed by the property or business appraiser, and documents
pertaining to the valuation of property or business (property or business valuation reports, and so on).
Article 16. Responsibility of Property or Business Valuation Companies or Independent Property or
Business Appraisers
1. The responsibility of a property or business valuation company or an independent property or business
appraiser in conducting valuations of property or business shall be regulated by this Law and other legislation as
well as property or business valuation contracts made between the client and the property or business valuation
company.
2. The responsibility of legal entities or other organisations incorporated in the Republic of Lithuania or another
Member State, or any branches thereof, in conducting property or business valuations for internal purposes only
shall be regulated by this Law and other legislation.
Article 17. Compulsory Third-party Liability Insurance of the Property or Business Valuation
Company or Independent Property or Business Appraiser
1. A property or business valuation company or an independent property or business appraiser shall maintain a
compulsory third-party liability cover throughout the period of engaging in valuations of property or business.
2. The annual threshold of third-party liability insurance shall be LTL 300,000.
3. The object of the compulsory third-party liability insurance shall be the third-party liability of the property or
business valuation company and/or independent property or business appraiser for damages done to the client
and/or third parties through neglect in performing obligations.
4. Third-party liability of the property or business valuation company and/or independent property or business
appraiser resulting from activity that is not related to valuations of property or business shall not be an object of
compulsory third-party liability insurance.
5. The terms and conditions of the compulsory third-party liability insurance contract of the property or business
valuation company and/or independent property or business appraiser, the pre-contractual and contractual rights
and obligations of the parties to the insurance contract shall be regulated by the Rules for Compulsory Thirdparty Liability Insurance of the Property or Business Valuation Company and Independent Property or Business
Appraiser 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 Conduct
Valuations of Property or Business
A property or business valuation company may not enter into any contracts over valuation of property or
business appraiser if:
1) the client is a member of the property or business valuation company, and/or a member of its managing or
supervisory bodies;
2) the property or business valuation company is a member of the client;
3) the spouse (live-in) of the client or of a member of the client’s managing body is a shareholder of a member
of the property or business valuation company, or a member of its managing or other bodies, or shareholders of
a member of the property or business valuation company, or members of 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 Appraisers to Conduct Valuations of
Property or Business
1. A property or business appraiser may not appraise property or business if:
1) the property or business appraiser is the owner (co-owner) of the subject property or business;
2) the property or business appraiser is the spouse (live-in) of the client or of a member of the client who has
1/10 votes or more at the meeting of the client’s members, or the spouse (live-in) of a member of the client’s
managing bodies, or is a close relative to the client or members of the client who have 1/10 votes or more at the
meeting of the client’s members, or to members of the client’s managing bodies, or is a member of the client or
a member of its managing bodies;
3) the qualifying certificate of the property or business appraiser has been suspended.
2. The property or business appraiser shall only appraise properties that they are entitled to appraise pursuant to
their qualification of property or business appraiser.
CHAPTER THREE
BASES OF PROPERTY OR BUSINESS VALUATION
Article 20. Bases for Conducting Property or Business Valuations
1. Valuations of property or business shall be conducted in the manner stipulated in Article 21 of this Law.
2. Non-compulsory valuations of property or business shall be conducted on the basis of property or business
valuation contracts as individual valuations of property or business.
3. Compulsory valuations of property or business shall be conducted in accordance with this Law and the
legislation regulating such valuations as mass valuations of property and/or individual valuations of property or
business.
Article 21. Performance of Property or Business Valuations
1. Valuation of property or business shall commence upon receipt of the client’s request to determine the value
of property or business and the property or business valuation company or an independent property or business
appraiser and the client entering into a written property or business valuation contract, unless it is otherwise
provided in the legislation regulating cases of compulsory property or business valuation. By agreement of the
parties, the contract may be accompanied by terms of reference.
2. The property or business valuation contract shall specify the following:
1) the details of the property or business valuation company or the independent property or business appraiser
(its name, legal form, domicile address, code number, registry that compiles and stores data of the company, or
the full name and contact details of the independent property or business appraiser);
2) the number of the certificate specified in Article 13.2 of this Law; this stipulation shall not apply to
independent property or business appraisers or property or business valuation companies of other Member
States that conduct valuations of property or business in the Republic of Lithuania on temporary or one-time
basis;
3) the client’s details (its name, legal form, domicile address, code number, registry that compiles and stores
data of the client, or the full name and contact details of a private individual);
4) the case and subject of property or business valuation, and location of the subject property or business;
5) the date of determination of the value of the property or business and the timeframe of conducting the
valuation of the property or business;
6) the amount of the compensation paid for the valuation of the property or business (the price of the service);
7) the rights, obligations, and responsibility of the property or business valuation company and/or property or
business appraiser and the client;
8) the date when the contract was made.
3. The contract for the property or business valuation service may contain other terms and conditions.
4. The property or business appraiser shall prepare a property or business valuation report specified in Article 22
of this Law.
5. No report specified in paragraph 1 of this Article shall be required for valuations of property or business
performed for internal purposes of a legal entity or another organisation incorporated in the Republic of
Lithuania, or any branches thereof. In that case, providing terms of reference shall be required. The
responsibility for drawing terms of reference shall lie with the person entitled to act on behalf of the legal entity
or another organisation incorporated in the Republic of Lithuania, or any branches thereof, or another person
authorised by them.
6. The terms of reference shall specify the following:
1) the title, date, and venue of the terms of reference;
2) the details of the legal entity or another organisation incorporated in the Republic of Lithuania or another
Member State, or any branches thereof, engaging in the valuation of property or business (such as its name,
legal form, domicile, code number, registry that compiles and stores data of the legal entity or another
organisation incorporated in the Republic of Lithuania, or any branches thereof);
3) the case, subject, and venue of valuation of property or business;
4) the individual characteristics of the subject property or business;
5) the date of establishing the value of the property or business and the timeframe of conducting the valuation
of the property or business;
6) the full name and signature of the person entitled to act on behalf of the legal entity or another organisation
incorporated 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 qualifying certificate of property or business
appraiser (for property or business appraisers that are not based in another Member State) and signature of the
property or business appraiser.
7. The terms of reference may specify other technical, design, or other details required for the purposes of
calculating the value of property or business.
8. The property or business appraiser shall, on the basis of the property or business valuation contract, unless
the legislation regulating cases of compulsory property or business valuation provides otherwise, or on the basis
of 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), adopt approaches (or combinations of approaches) of
valuation of property or business, and methods to apply such approaches.
9. The amount of compensation payable for valuation of property or business shall be fixed in the property or
business valuation contract. The contract shall clearly define all of the terms and conditions being established
therein.
Article 22. Property or Business Valuation Report
1. The property or business valuation report shall be concluded in writing.
2. For non-compulsory or compulsory valuations of property or business, the property or business valuation
report shall be signed by the independent property or business appraiser drafting it. When valuation of property
or business is conducted by an independent property or business appraiser employed with 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 them, or a person
commissioned tosign the property or business valuation report by the legislation. When the independent property
or business appraiser is also the owner of a private company, the property or business valuation report shall be
signed once. Property or business valuation reports drafted by a property or business valuation company shall
also bear the seal of the property or business valuation company, if the property or business valuation company
is required to have one.
3. For valuations of property or business for internal purposes of a legal entity or another organisation
incorporated in the Republic of Lithuania, or any branches thereof, the property or business valuation report shall
only be signed by the property or business appraiser drafting it.
4. The property or business valuation report shall 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, unless the valuation of property is being
conducted as mass valuation of property;
4) the case of valuation;
5) the client’s details (name, legal form, domicile address, code number, registry that compiles and stores data of
the client, or the full name and contact details of a private individual);
6) the tenure and owner of the subject property or business, unless the valuation of property is being conducted
as mass valuation of property;
7) the details of the property or business valuation company or independent property or business appraiser (the
name, legal form, domicile address, code number, register that compiles and stored data of the property or
business valuation company, or the full name, contact details of the independent property or business appraiser
and the number of the certificate of proof that the property or business valuation company or independent
property or business appraiser has been entered in the list of the List of External Appraisers, unless the
independent property or business appraiser and property or business valuation company is engaged in property
or business valuation in the Republic of Lithuania on 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 them, or the person commissioned to sign the property or business
valuation report by the legislation, and the property or business appraiser;
9) the dates of inspection of the property or business, unless the valuation of property is being conducted as
mass valuation of property, and the drafting of the report;
10) terms and conditions that might affect the value of the property or business that have not been considered,
providing the reasons for doing so;
11) approaches (or combinations of approaches) of valuation of property or business and methods of application
of such approaches;
12) a description of the subject property or business;
13) validation of the value of the property or business, complete with the calculations used in arriving at the
value of the property or business;
14) an opinion on the value of the property or business signed by the property or business appraiser drafting it
(bearing the property or business appraiser’s full name and signature), stating if the opinion was drawn as a
result of there being a dispute between the client and the property or business valuation company or other
persons or entitles regarding the determination of the value of the property or business, and the date of the
valuation of the property or business.
5. The contents of the property or business valuation report may be enhanced by agreement between the client
and the property or business valuation company or independent property or business appraiser, as well as in
cases envisaged in the legislation.
6. Property or business valuation reports shall be registered by the property or business valuation company, or
individually registered by the independent property or business appraiser.
7. Counterparts (copies) of property or business valuation reports shall be kept at property or business valuation
companies conducting valuations of property or business as prescribed by the law; furthermore, independent
property or business appraisers from the List of External Appraisers or independent property or business
appraisers of other Member States shall be required to keep counterparts (copies) of property or business
valuation reports for a minimum period of five years.
Article 23. Legal Status of the Property or Business Valuation Report and Disputes Concerning
Valuations of Property or Business
1. A property or business valuation report shall be deemed correct unless the Regulator has identified any
deviations 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 legislation otherwise provides.
Article 24. Publicity of the Property or Business Valuation Report and Details
1. The property or business valuation report is the property of the client and may be issued to third parties or
publicised at the client’s discretion, considering the valuation case addressed 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 made between the property or business valuation company or independent
property or business appraiser stipulate otherwise. The property or business valuation company or independent
property or business appraiser shall present a copy of the counterpart (copy) of the property or business
valuation report to the Regulator in the event specified in Article 15.2.3 or Article 15.4.6 of this Law.
2. For valuations of property or business for internal purposes of a legal entity or another organisation
incorporated in the Republic of Lithuania or another Member State, or any branches thereof, the property or
business valuation report shall be the property of the legal entity or another organisation incorporated in the
Republic of Lithuania or another Member State, or any branches thereof, and may be issued to third parties or
publicised at its owner’s discretion, unless the legislation of the Republic of Lithuania provides otherwise. Upon
receipt (by registered mail) of a written inquiry from the Regulator, the legal entity or another organisation
incorporated in the Republic of Lithuania or another Member State, or any branches thereof, shall issue the
property or business valuation report, accompanied by any explanations from the property or business appraiser
and documents pertaining to the valuation of the property or business.
3. When the valuation of property or business is carried out for the purposes of taxation, eminent domain, and in
other cases envisaged in the legislation of the Republic of Lithuania, which are considered to be in the interests
of the state and the public, the publicity of the property or business valuation report and its contents shall be
regulated by this Law and the legislation of the Republic of Lithuania governing valuations of property or
business for taxation, eminent domain purposes and in other cases as envisaged in the legislation of the Republic
of Lithuania, which are considered to be in the interests of the state and the public.
CHAPTER FOUR
REGULATION OF THE ACTIVITIES OF PROPERTY OR BUSINESS APPRAISERS AND PROPERTY OR
BUSINESS VALUATION COMPANIES
Article 25. Regulation of the Activities of Property or Business Appraisers and Property or Business
Valuation Companies
The regulation of the activities of property or business appraisers and property or business valuation companies
shall be done by the Regulator.
Article 26. Institution Commissioned by the Government of the Republic of Lithuania to Perform
State Regulation of Property or Business Appraisers and Property or Business Valuation Companies
1. The Regulator shall operate in line with the law regulating its legal form, unless this Law provides otherwise,
and its Statute.
2. In enforcing the provisions of this Law, the Regulator shall:
1) prepare and submit to the Ministry of Finance: draft Description of the Requirements for the Education,
Professional Experience and Improvement of Qualifications of Property or Business Appraiser, draft Description of
the Procedure for the Recognition of Professional Qualifications of Property or Business Appraisers from other
Member States Intending to Engage in Valuations of Property or Business in the Republic of Lithuania on
Incorporated, Temporary, or One-time Basis, draft Working Regulations of the Property or Business Appraiser
Qualifying Examination Panel, draft Code of Professional Ethics of Property or Business Appraisers, draft
Methodology of Property and Business Valuation, draft Rules for the Drawing, Handling, and Publication of the
List of Persons and Entities Entitled to Engage in External Valuations of Property or Business, draft Rules for the
Audit of Operations of Property or Business Appraisers and Property or Business Valuation Companies, draft
Rules for the Holding of Property or Business Appraiser Qualifying Examinations, draft Rules for the Handling of
Complaints Regarding the Decisions of the Property or Business Appraiser Qualifying Examination Panel, draft
Rules for the Issuing and Effect of the Qualifying Certificate of Property or Business Appraiser;
2) carry out audits of property or business operations of property or business appraisers and property or
business valuation companies in line with the Rules for the Audit of Operations of Property or Business
Appraisers and Property or Business Valuation Companies;
3) handle inquiries about the compliance of property or business valuation reports to the requirements laid down
in Article 22 of this Law;
4) handle applicants’ complaints regarding operations of property or business valuation companies and property
or business appraisers, observing the procedure and timeframe established in the Public Administration Law of
the Republic of Lithuania;
5) enforce decisions by the Honorary Court of Property or Business Appraisers upon expiry of the appeal period;
6) coordinate improvements of property or business appraisers’ qualifications;
7) handle the Computerised Property or Business Appraiser and Property or Business Valuation Company Data
Handling and Retrieval System in line with the Rules for Using the Computerised Property or Business Appraiser
and Property or Business Valuation Company Data Handling and Retrieval System as approved by the Ministry of
Finance and the Regulator;
8) be entitled to obtain from private individuals and legal entities (including property or business appraisers and
property or business valuation companies) information to be used for the purposes of regulating the operations
of property or business appraisers and property or business valuation companies or to be filed with the Honorary
Court of Property or Business Appraisers, and copies of documents pertaining to valuations of property or
business (such as property or business valuation reports, and so on), access information available in the
Computerised Property or Business Appraiser and Property or Business Valuation Company Data Handling and
Retrieval System and in registries and databases operated and handled by other legal entities;
9) publish a list of property or business appraisers who are holders of valid qualifying certificates of property or
business appraisers, and the List of External Appraisers;
10) exercise other rights and duties established in this Law and other legislation.
3. In performing audits of operations of property or business appraisers and property or business valuation
companies as stipulated in paragraph 2.2 of this Article, the Regulator shall:
1) analyse the conformity between the details laid down in reports on operations and improvements of
qualifications of property or business appraisers as envisaged in Article 15.4.5 of this Law and the details
provided in operating reports of property or business valuation companies as established in Article 15.2.1 of the
Law, and/or the accuracy of such details;
2) examines the conformity of property or business valuation reports for a period of three previous years or less
as may be drafted by and registered at property or business valuation companies or drafted by property or
business appraisers to the requirements laid down in Article 22 of this Law according to the activities plan
approved by the Regulator for that year.
4. In exercising its right stipulated in paragraph 2.8 of this Article, the Regulator shall provide reasonable
arguments to support its written inquiry demanding release of information and documents pertaining to
valuations of property or business (such as property or business valuation reports, and so on), notify (by
registered mail) the private individual or legal entity (including the property or business appraiser and property or
business valuation company) that is the subject of the information so demanded to the effect, and set a deadline
for the release of the documents and information.
5. The employees and former employees of the Regulator shall keep information they may obtain from private
individuals and legal entities (including property or business appraisers and property or business valuation
companies) confidential and shall refrain from using documents pertaining to valuations of property or business
(such as property or business valuation reports, and so on) they may obtain for their own gain or that of other
persons or entities. The employees and former employees of the Regulator shall be held liable for inappropriate
usage or illegal disclosure of such information in the manner prescribed by the legislation of the Republic of
Lithuania.
6. The Regulator shall, within four months of the end of a calendar year, present the Ministry of Finance with
reports on operations and regulation of property or business appraisers and property or business valuation
companies, the results of such regulation, and the status of property or business valuations in Lithuania.
Article 27. Presentation of Decisions by the State Regulator of Property or Business Appraisers and
Property or Business Valuation Companies Commissioned as such by the Government of the
Republic of Lithuania
Within three days of publication of decisions adopted in the cases spelled out in Article 9.15, Article 10.7, and
Article 13.2 and 13.8 (with the exception of the personal ID code number of the property or business appraiser)
on its website, the Regulator shall dispatch, by registered mail, endorsed copies of such decisions to property or
business appraisers that are the subject of such decisions, and legal entities or organisations, or any branches
thereof, or property or business valuation companies, which employ the property or business appraisers that are
the subject of such decisions.
Article 28. Honorary Court of Property or Business Appraisers
1. The Honorary Court of Property or Business Appraisers shall have five members:
1) three members qualified at least as appraisers (higher-level qualification) shall be appointed, given their
consent, by exclusive umbrella associations of property and/or business appraisers and/or property or business
valuation companies out of the members of such exclusive umbrella associations of property and/or business
appraisers and/or property or business valuation companies that are employed by members of the property or
business valuation company associations or are the owners of private companies or real members of
partnerships;
2) two members – public officials – who have at least three years of experience of holding a public office or
experience of drafting or participating in drafting legislation regulating property or business valuations shall be
appointed by the Ministry of Finance.
2. The personal makeup of the Honorary Court of Property or Business Appraisers shall be approved and its
chairperson and deputy chairperson appointed out of the members of the Honorary Court of Property or Business
Appraisers by the minister of finance.
3. The term of office of the members of the Honorary Court of Property or Business Appraisers shall be three
years from the appointment date. The same person may be appointed for a maximum of two consecutive terms
of office. A new member of the Honorary Court of Property or Business Appraisers shall be appointed within 30
days of the end of the term of office of a retiring court member. Upon the expiry of the term of office of a
member of the Honorary Court of Property or Business Appraisers, they 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 Honorary Court of Property or Business Appraisers, the appointing institution or organisation shall
appoint a new member of the court within 10 days. An institution appointing a member to the Honorary Court of
Property or Business Appraisers may recall the member prior to the expiry of the respective term of office. Upon
the recall of a member of the Honorary Court of Property or Business Appraisers, the appointing institution or
organisation shall appoint a new member of the court within 10 days. In the event the associations laid down in
paragraph 1.1 of this Article do not appoint their members to the Honorary Court of Property or Business
Appraisers in the cases specified in this paragraph, the Regulator shall appoint such members from among the
members (property or business appraisers) of the most numerous exclusive umbrella organisations of property or
business appraisers and/or property or business valuation companies, granted the consent of such members.
4. In its operations, the Honorary Court of Property or Business Appraisers shall abide by this Law and the
Regulations of the Honorary Court of Property or Business Appraisers as approved by the minister of finance that
stipulate the working principles, organisation of business, procedures of disciplinary hearings of property or
business appraisers, and procedures for passing decisions of the Honorary Court of Property or Business
Appraisers.
5. The Honorary Court of Property or Business Appraisers shall have the duty to:
1) investigate disciplinary cases of property or business appraisers;
2) call property or business appraisers to attend sittings of the Honorary Court of Property or Business Appraisers
for the purposes of disciplinary hearings;
3) pass decisions to impose disciplinary sanctions onto property or business appraisers or close disciplinary
hearings.
6. The Honorary Court of Property or Business Appraisers shall have the following rights:
1) the right to approach the Regulator over information (written explanations from property or business
appraisers; written explanations from property or business valuation companies and documents pertaining to
valuations of property or business; other information relating to a disciplinary hearing of a property or business
appraiser) that may be required for the purposes of initiating and/or conducting a disciplinary hearing of a
property or business appraiser;
2) other rights fixed in the Regulations of the Honorary Court of Property or Business Appraisers that are aligned
with this Law and other legislation.
7. The Honorary Court of Property or Business Appraisers may conduct a disciplinary hearing of a property or
business appraiser if the sitting is attended by more than one-half of the members of the Honorary Court of
Property or Business Appraisers. Decisions of the Honorary Court of Property or Business Appraisers shall be
adopted by a majority vote from all members of the Honorary Court of Property or Business Appraisers.
8. The members and former members of the Honorary Court of Property or Business Appraisers shall keep
information that they may obtain in the process of conducting disciplinary hearings of property or business
appraisers confidential and shall refrain from using it for their own personal gain or that of other persons or
entities. The members and former members of the Honorary Court of Property or Business Appraisers shall be
held liable for any violations of this provision in the manner prescribed by the legislation of the Republic of
Lithuania.
9. The Honorary Court of Property or Business Appraisers shall be represented at other institutions by the
chairperson and deputy chairperson of the Honorary Court of Property or Business Appraisers.
10. The Regulator shall be in charge of supplying the Honorary Court of Property or Business Appraisers with all
the hardware and materials necessary.
Article 29. Disciplinary Hearings of Property or Business Appraisers
1. The Honorary Court of Property or Business Appraisers shall subject property or business appraisers to one of
the disciplinary sanctions spelled out in paragraph 4 of this Article for failure to adhere to 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 Appraisers.
2. The Regulator shall draw and file a written motion to initiate a disciplinary hearing towards a property or
business appraiser based on the available information (i.e. information submitted by persons in writing or
information in possession of the Regulator) about the infringements laid down in paragraph 1 of this Article to
the Honorary Court of Property or Business Appraisers within 10 business days of the date when such
information was received or became evident. 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 Appraisersmade by property or business appraisers of other
Member States shall be forwarded to the competent body of the respective Member State by the Regulator by
registered mail.
3. The Honorary Court of Property or Business Appraisers shall pass a decision to initiate a disciplinary hearing
towards a property or business appraiser within 10 business days of the date of receipt of a written motion to
initiate a disciplinary hearing towards a property or business appraiser from the Regulator.
4. The following disciplinary sanctions shall apply to property or business appraisers for the infringements
specified in paragraph 1 of this Article:
1) a caution;
2) a reprimand;
3) suspension of the validity of the qualifying certificate of property or business appraiser or temporary
restriction of the right to engage in property or business valuations and a qualifications audit for a property or
business appraiser from another Member State who engages in property or business valuations on temporary or
one-time basis;
4) suspension of the qualifying certificate of property or business appraiser or revocation of the right to engage
in property or business valuations of a property or business appraiser from another Member State who engages
in property or business valuations on temporary or one-time basis.
5. One infringement shall only entail one disciplinary sanction. One year after the Honorary Court of Property or
Business Appraisers passes a decision to impose a disciplinary sanction, the property or business appraiser shall
be deemed to have never had any such sanction applied.
6. Unless any of the infringements laid down in paragraph 1 of this Article are found during a disciplinary hearing
of a property or business appraiser, the disciplinary hearing of the property or business appraiser shall be closed.
7. The Honorary Court of Property or Business Appraisers shall pass its decision within 60 days from the date
when the disciplinary hearing of a property or business appraiser was initiated. Unless the Honorary Court of
Property or Business Appraisers passes a decision within 60 days from the date when the disciplinary hearing of
a property or business appraiser was initiated, the disciplinary hearing of the property or business appraiser shall
be deemed closed. If the Regulator has adopted a decision to impose the sanctions stipulated in this Law on a
property or business appraiser for the infringements laid down in paragraph 1 of this Article, no disciplinary
sanction shall be applied to the property or business appraiser, or the disciplinary hearing of the property or
business appraiser shall be deemed closed.
8. Decisions of the Honorary Court of Property or Business Appraisers shall be binding on property or business
appraiser, property or business valuation companies, and the Regulator.
9. Having passed a decision to impose a disciplinary sanction, the Honorary Court of Property or Business
Appraisers shall, within 10 business days of the date of passing its decision, submit the decision to the Regulator,
which shall, within three business days of the date of submission of the decision to the Regulator, notify the
property or business appraiser of the decision passed in writing (by registered mail), enclosing a copy of the
decision by the Honorary Court of Property or Business Appraisers endorsed by the Regulator. An endorsed copy
of the decision by the Honorary Court of Property or Business Appraisers shall also be dispatched (by registered
mail) to the property or business valuation company or the legal entity incorporated in the Republic of Lithuania,
or any branches thereof, that employ the property or business appraiser who is the subject of the relevant
decision.
10. Extracts from decisions by the Honorary Court of Property or Business Appraisers shall, within three business
days of the date of receipt of the relevant decision by the Regulator, be published in the file of the property or
business appraiser who is the subject of the decision by the Honorary Court of Property or Business Appraisers,
which file is available in the Computerised Property or Business Appraiser and Property or Business Valuation
Company Data Handling and Retrieval System. After the decision by the Honorary Court of Property or Business
Appraisers enters into effect, its extract shall be published on the website of the Regulator. This publication shall
also include details as to the date of commencement of application of the disciplinary sanction to the property or
business appraiser.
11. The content of an extract of a decision by the Honorary Court of Property or Business Appraisers as
published on the Regulator’s website shall contain the following details:
1) the full name of the property or business appraiser;
2) the number (or numbers) of the qualifying certificate of property or business appraiser, unless the appraiser in
question is an independent property or business appraiser of another Member State engaging in valuations of
property or business in the Republic of Lithuania on temporary or one-time basis;
3) the date when the decision by the Honorary Court of Property or Business Appraisers was passed on the
disciplinary hearing of the property or business appraiser was closed;
4) the sanction imposed by the Honorary Court of Property or Business Appraisers as per stipulations of
paragraph 4 of this Article, or any of the circumstances spelled out in paragraph 6 and 7 of this Article.
12. Extracts from decisions by the Honorary Court of Property or Business Appraisers shall be published on the
Regulator’s website for the duration of the relevant disciplinary sanctions imposed on property or business
appraisers only.
13. Decisions by the Honorary Court of Property or Business Appraisers shall enter into effect upon the expiry of
the period of time allowed for appeal, if not such appeal was made. If a decision by the Honorary Court of
Property or Business Appraisers has been appealed against, the decision shall enter into effect once the court
judgement enforcing the decision by the Honorary Court of Property or Business Appraisers becomes effective.
Article 30. Procedure of Making Appeals against Decisions by the Honorary Court of Property or
Business Appraisers
1. Appeals against decisions by the Honorary Court of Property or Business Appraisers may be made to the
Administrative Court of District of Vilnius within 30 days of dispatch (by registered mail) of the relevant decision
to the property or business appraiser and the publication of an extract from the decision in the file of the
property or business appraiser who is the subject of the decision by the Honorary Court of Property or Business
Appraisers, which file is available in the Computerised Property or Business Appraiser and Property or Business
Valuation Company Data Handling and Retrieval System.
2. The Regulator’s decisions shall be appealed against to the Administrative Court of District of Vilnius within 30
days of their publication on the Regulator’s website.”
Article 2. Effective Date of the Law
With the exception of Article 4, this Law shall enter into effect on 1 May 2012.
Article 3. Enforcement of the Law
1. In line with the Rules for the Drawing, Handling, and Publication of the List of Persons and Entities Entitled to
Engage in External Valuations of Property or Business, the state regulator of property or business appraisers and
property or business valuation companies commissioned as such by the government of the Republic of Lithuania
shall, within three months of the effective date of this Law, enter property or business valuation companies that
hold valid qualifying certificates of corporate entities issued by the public company Institute for Audit,
Accounting, and Property Valuation of the Republic of Lithuania prior to the effective date of this Law, and
certificates specified in Article 13.3 of the Law on Bases of Property and Business Valuation of the Republic of
Lithuania, in the List of External Appraisers. Three months after the effective date of this Law, property or
business valuation companies that hold valid qualifying certificates of corporate entities issued by the public
company Institute for Audit, Accounting, and Property Valuation of the Republic of Lithuania prior to the effective
date of this Law shall be entitled to engage in valuations of property and/or business regardless of the provisions
of Article 12.2 of the Law on Bases of Property and Business Valuation of the Republic of Lithuaniaas laid down
in Article 1 of this Law, and in the case stipulated in Article 21.2.2 and Article 22.4.7 such companies shall state
the numbers of their valid qualifying certificates of corporate entities issued by the public company Institute for
Audit, Accounting, and Property Valuation of the Republic of Lithuania prior to the effective date of this Law.
2. Property or business appraisers that hold valid qualifying certificates of property or business appraiser issued
by the public company Institute for Audit, Accounting, and Property Valuation of the Republic of Lithuania prior
to the effective date of this Lawshall be entitled to engage in valuations of property or business until 1 January
2018 regardless of the provisions of Article 8.2 and Article 8.3 of the Law on Bases of Property and Business
Valuation of the Republic of Lithuaniaas laid down in Article 1 of this Law. Decisions regarding suspension,
suspension or reversal of suspension of valid qualifying certificates of property or business appraiser issued by
the public company Institute for Audit, Accounting, and Property Valuation of the Republic of Lithuania prior to
the effective date of this Lawshall be made by the state regulator of property or business appraisers and
property or business valuation companies commissioned as such by the government of the Republic of Lithuania
and the Honorary Court of Property or Business Appraisers in the cases spelled out in the Law on Bases of
Property and Business Valuation of the Republic of Lithuaniaas laid down in Article 1 of this Law.
3. Unless, within 30 business days of the effective date of this Law:
1) the associations specified in Article 9.8 of the Law on Bases of Property and Business Valuation of the Republic
of Lithuaniaas laid down in Article 1 of this Lawfile with the state regulator of property or business appraisers and
property or business valuation companies commissioned as such by the government of the Republic of Lithuania
a list of nominees for the property or business appraiser qualifying examination panel in the case indicated in the
paragraph above mentioned, the state regulator of property or business appraisers and property or business
valuation companies commissioned as such by the government of the Republic of Lithuania shall nominate such
candidates from among the members (property or business appraisers) of the most numerous exclusive umbrella
associations of property or business appraisers and/or property or business valuation companies, granted
consent from such members;
2) the associations specified in Article 28.1.1 of the Law on Bases of Property and Business Valuation of the
Republic of Lithuaniaas laid down in Article 1 of this Lawappoint members to the Honorary Court of Property or
Business Appraisers, they shall be appointed by the Ministry of Finance of the Republic of Lithuania. In the case
specified in this paragraph, members of the Honorary Court of Property or Business Appraisers shall be
appointed by the Ministry of Finance of the Republic of Lithuania from among the members (property or business
appraisers) of the most numerous exclusive umbrella associations of property or business appraisers and/or
property or business valuation companies, granted consent from such members.
Article 4. Proposal to the Government and other Bodies of the Republic of Lithuania
The government of the Republic of Lithuania, the Ministry of Finance of the Republic of Lithuania, and the
Insurance Supervisory Commission of the Republic of Lithuania shall, prior to this Law entering into effect and
within the limits of their individual competences, adopt legislation enforcing this Law, make the necessary
decisions, approve legislation assigned to them, and coordinate other items of legislation necessary for the
purposes of enforcing this Law and the Law on Bases of Property and Business Valuation of the Republic of
Lithuaniaas laid down in Article 1 of this Law.
I hereby pronounce this Law adopted by the parliament of the Republic of Lithuania.
DALIA GRYBAUSKAITĖ
PRESIDENT
REPUBLIC OF LITHUANIA