Administrative procedure as a catalyst for change in professional valuation activity in Ukraine

Abstract

The article analyzes the impact of the Law of Ukraine “On Administrative Procedure” (LAP) on the transformation of professional valuation activity in Ukraine. It is noted that the entry into force of the LAP in 2023 and its integration into the special legislation on property valuation in 2024 became a catalyst for unifying the procedures of interaction between the regulator (the State Property Fund of Ukraine) and the subjects of valuation activity, shifting the sphere from fragmented oversight to a system of public-law guarantees.

The key innovations of the LAP are examined, including the definition of an administrative act, the stages of administrative proceedings (initiation, preparation, consideration, adoption, and execution), as well as the principles of the rule of law, reasonableness, proportionality, and officiality. It is emphasized that these norms apply to the SPFU’s decisions regarding the issuance or revocation of certificates, qualification attestations, and the review of valuation reports, ensuring participants’ rights to access case materials, receive reasoned decisions, and appeal them. The role of the LAP as a subsidiary act harmonizing sectoral regulation, reducing corruption risks, and aligning Ukraine with European standards of good governance is highlighted.

It is determined that a significant aspect of reform is the implementation of a unified mechanism for administrative appeal (30-day time limit, reasoned decision), automation of proceedings and digitalization (electronic registers, automated valuation services), as well as the stimulation of the appraisers’ qualification reform through Draft Law No. 13435 on the transition to international standards. The article analyzes implementation challenges such as bureaucratization, reissuance of certificates in 2025, division of competencies with self-regulatory organizations, digitalization challenges, and the balance between freedom of contract and imperative regulation.

It is argued that the LAP fundamentally changes the paradigm of valuation activity, transforming it into a service-oriented model focused on transparency and rights protection, despite wartime and resource constraints. The article proposes solutions including the development of specialized methodologies, certification of algorithms, dialogue with the professional community, and updating of subordinate acts to ensure the effectiveness of the reform.