The role of the CAREA expert in Malagasy real-estate transactions

The CAREA (Compagnie des Arbitres Rapporteurs et Experts Agréés près les Cours et Tribunaux de Madagascar) is the official professional body that brings together the experts accredited to the Courts and Tribunals of Madagascar. The expert on the CAREA list helps secure real-estate transactions in Madagascar through impartial, rigorous valuations carrying the evidential weight granted to that status under Malagasy law. Cabinet ExpertImmo | RABENIMANANA Normand, led by Mr RABENIMANANA Normand — on the CAREA list since 1990 — works in real-estate valuation across Madagascar.

What is the CAREA in Madagascar?

The CAREA is the Compagnie des Arbitres Rapporteurs et Experts Agréés près les Cours et Tribunaux de Madagascar. This professional body was created to structure and regulate the profession of judicial expert in Madagascar. Being on the CAREA list means that the expert has been recognised as competent, of integrity and qualified by the Malagasy judicial system to carry out appraisals with evidential weight in court.

Mr RABENIMANANA Normand has been on the CAREA list since 1990. He has practised real-estate valuation in Madagascar without interruption since 1990.

Why use a CAREA expert for a real-estate transaction?

In Madagascar, the property market is characterised by the absence of a centralised database of sale prices and by a significant diversity of land-tenure regimes (land title, land certificate, untitled private property). In this context, the expert registered with the CAREA brings essential value:

• Objectivity: the expert registered with the CAREA is bound by a strict code of ethics requiring independence, impartiality and probity. He has no interest in the transaction.
• Recognised competence: inclusion on the Compagnie’s list attests to technical competence recognised by the Malagasy judicial system.
• Legal value: the report of an expert registered with the CAREA carries the evidential weight granted to that status under Malagasy law and is, on that basis, admissible evidence before the country’s courts.
• Bank acceptance: Malagasy credit institutions require a valuation report drawn up by an expert registered with the CAREA for any mortgage guarantee file.

In what types of transactions does the CAREA expert act?

Sale and acquisition transactions

When buying or selling property in Madagascar, an open-market valuation by an expert on the CAREA list gives both buyer and seller an objective assessment of the property’s value. This valuation is particularly useful in areas where market data is scarce or unreliable.

Bank financing files

For a property-loan or mortgage-guarantee file, Malagasy credit institutions require an open-market valuation report issued by an expert on the CAREA list. The reports drawn up by Mr RABENIMANANA Normand meet the requirements usually set by credit committees under the applicable banking regulations.

Inheritances and partitions

For an inheritance or a family partition, a valuation by an expert on the CAREA list objectively determines the value of the real-estate assets to be divided. The report, carrying the evidential weight granted to that status, is usually produced before Malagasy notaries and courts. Legal questions relating to inheritance devolution fall within the remit of the notary or lawyer.

Expropriations and compensation

When the Malagasy State carries out an expropriation in the public interest, the expert registered with the CAREA may be called upon to value the property and inform the determination of the owner’s compensation. The expert report then serves as a basis for assessment within the applicable administrative or judicial procedure.

Real-estate disputes

In his capacity as a judicial expert on the CAREA list, the expert may be appointed by a court to inform the judge on real-estate valuation matters in a dispute between parties.

What are the ethical principles of the CAREA expert?

The expert on the CAREA list is subject to a strict code of ethics that guarantees the reliability of his appraisals. Mr RABENIMANANA Normand practises in scrupulous compliance with the following five fundamental principles:

1. Independence — the expert has no interest in the parties to the transaction. He receives no commission and his fees are never calculated as a percentage of the estimated value.
2. Impartiality — the expert gives his opinion with full objectivity, without favour or prejudice towards any party.
3. Probity — the expert practises with integrity and honesty, in compliance with Malagasy laws and regulations.
4. Competence — the expert maintains and develops his technical and legal knowledge through continuing professional development.
5. Confidentiality — all information gathered in the course of an assignment is covered by professional confidentiality.

What is the legal value of an appraisal report by an expert registered with the CAREA?

The appraisal report drawn up by an expert on the CAREA list carries the evidential weight granted to that status by the Malagasy judicial system. In practical terms, this means that:

• The report is admissible as evidence before the Courts of First Instance, the Courts of Appeal and the Supreme Court of Madagascar, which assess its scope at their sole discretion.
• The report may be relied upon in the legal relationships between the parties to the appraisal engagement; its effect with regard to third parties is assessed under the ordinary rules of law applicable to expert reports.
• The report is usually produced before the credit committees of Malagasy banking institutions in financing and mortgage-guarantee files.
• The report engages the professional liability of the signing expert.

Conclusion

The expert on the CAREA list is a key player in securing real-estate transactions in Madagascar. His listing by the courts, his strict code of ethics and the evidential weight of his reports make him a reliable reference for impartial valuations. Cabinet ExpertImmo | RABENIMANANA Normand, led by Mr RABENIMANANA Normand — on the CAREA list since 1990 — works in real-estate valuation in Madagascar at the request of institutional and private clients.