The purpose of the property valuation
The purpose of the property valuation is mainly to provide grounds for the levying of public dues, as the property valuation is the basis for property charges and inheritance tax. Property charges are based on an assessment of price levels in February in the year before the dues are levied.
Property valuation has been used as reference for various other purposes. Stamp duty when registering a purchase agreement depends on the property valuation, for instance. Some credit institutions also base the degree of security of a property on a particular percentage of its property valuation.
It is important that owners make sure that information on their property is properly recorded. If information is incorrect, comments are to be submitted to the Building Authority in the relevant municipality. Apply for a revaluation F-501 (in Icelandic).