The Curious Case of Brazilian Valuation Engineers

Abstract

In Brazil the valuation of real property is regarded as belonging to the field of engineering. According to ABNT NBR 14653-1 the engenheiro de avaliações is defined as a professionally trained university graduate who is registered with CREA, and CONFEA Resolution 345/1990 assigns to engineering professionals the tasks of inspection, carrying out expert examinations, carrying out valuations and deciding contested technical questions (arbitramento). The corretor de imóveis, which was established separately by law Lei 6.530/1978, possesses a technical qualification, and the broker's statutory competence is intermediation and opinions on commercialization; whether that extends to valuation was litigated between the two councils. This article examines the distinction between these two roles, the regulatory measures that establish it, and the consequent responsibility involved. It looks at the CNAI broker-appraiser register and the disagreements between the two professional councils. The article concludes that Brazil has regulated the estimation process without, however, setting up a durable foundation for value, and it compares this method with the two-value system in Germany. An appendix gives the division of responsibilities in the form of a Prolog knowledge base, each proposition referring to its main source.