How can fairness be achieved in inheritance distribution when the estate includes real estate assets? In fact, real estate valuation is the first step in ensuring the rights of heirs and obtaining a fair and clear distribution, as it is not just a procedure within the inheritance division process, but rather a precise and impartial process that prevents disputes.

In this article, we will discuss the steps of real estate valuation for inheritance and its importance, along with the definition of real estate inheritance and its procedures. 

What is the importance of a real estate valuation for inheritance? 

Real estate valuation for inheritance purposes is one of the most important uses of real estate valuation in the Kingdom, as it is not possible to achieve fairness in the division of inheritance without knowing the true market value of the inherited real estate.

The valuation is not limited to being a technical procedure, but is also an organizational and legal process that ensures the preservation of rights and the accurate distribution of legal shares. Its importance is evident in the following points:

• Ensuring fairness: 

One of the most important procedures in the division of an estate is the valuation of the property, as it is through the estimation of the true market value of each real estate asset that the inheritance is distributed promptly and fairly among the heirs. 

• Compliance with legal regulations: 

One of the conditions for dividing the estate is to conduct a real estate valuation report, determine the true value of the property, and comply with other fees and laws, such as white land fees and others. 

• Determining the heirs’ shares: 

The real estate valuation report helps determine each heir’s share impartially, ensuring that the property is distributed in a fair and organized manner. 

• Supporting financial planning:

 By enabling heirs to make sound financial decisions about selling or investing after the division.

Therefore, cooperation with an accredited valuer or a reliable real estate valuation company approved by the Saudi Authority of Accredited Valuers is essential for any inheritance division process carried out in accordance with Saudi laws.

How are properties valued for inheritance purposes?

After discussing the importance of property valuation in the division of inheritance, we move on to how to value it, but first, we must define real estate inheritance, which includes all fixed assets owned by the deceased, such as land, buildings, apartments, and commercial stores.

The Saudi Personal Status Law has determined the legal heirs to real estate in accordance with the provisions of Articles 197 to 242. The division of real estate inheritance is carried out either by mutual agreement between the heirs or judicially through the Personal Status Court when no solution can be reached.

One of the most important documents is a real estate valuation report from a real estate valuer or a real estate valuation company approved by the Saudi Authority of Accredited valuers. The property is valued in person for a real estate valuation, according to the following steps: 

• Information gathering:

 This is one of the most crucial stages of real estate valuation, where the real estate valuer gathers all the essential information about the property, including title deeds, contracts, and legal data related to the property, while ensuring that it is free from disputes or financial obligations.

• Property inspection: 

An accredited valuer inspects the property and verifies its location, condition, construction, and finish quality, interior design, maintenance quality, any improvements made to it, and everything related to the property. 

• Selecting the appropriate valuation method: 

The real estate valuer selects the most appropriate method to determine the value of the property according to its nature. They may use the direct comparison method by comparing the property with similar properties in the same area, or the income method to value investment properties based on their financial return, or the cost method, which is based on the current construction cost minus depreciation. The goal is to arrive at a fair and accurate value that reflects the true market price.

• Preparation of the final valuation report: 

After determining the appropriate method, the accredited valuer prepares a final report detailing the property, the methodology used, and the final market value. The report is officially approved by the Saudi Authority of Accredited Valuers for use in inheritance division procedures to ensure fairness and transparency among the heirs.

Therefore, real estate valuation is a necessary step to ensure fair distribution of inheritance, as it accurately and transparently determines the true value of the property. Hiring a certified valuer or real estate valuation company helps preserve rights and avoid disputes among heirs.

In conclusion, there are many purposes for which real estate valuation is used, especially in the division of inheritance. It is not just a routine procedure but a necessity to know the true market value to ensure rights, whether in sale, purchase, investment, real estate financing, and others. To obtain an accredited real estate valuation report, you must cooperate with a licensed real estate valuation company and have a certified valuer. Contact Aain now for real estate valuation and get a professional valuation that guarantees accuracy and transparency at every step.