Legal Possibilites of Using AI in Real Estate Valuation – Polish Perspective

Dominik Wasiluk

ERES from European Real Estate Society (ERES)

Abstract: AI-based automated valuation models (AVMs) exhibit best among all types of AVMs and truly commercially-viable qualities. Therefore for many professionals the use of AI algorithms for property valuation seems to be a natural progress and a necessity in this field. However the application of AI to property valuation raises a number of questions of a legal nature. First and foremost, is the use of AVM by appraisers to perform valuation reports allowed under current legal regulations? In my paper, I will present an analysis of Polish legal provisions regarding real estate valuation and prove that, unlike in many other European countries, they have almost explicitly allowed the use of AVMs by appraisers, including those based on artificial intelligence, for many years. In the second part of the report, I will present my conclusions on the professional liability of an appraiser for possible AVM errors. In order to investigate both research problems, I use linguistic and hermeneutical analysis of law, which I supplement with sociological methods - in-depth interviews with Polish property appraisers. Finally, based on an extensive literature review and international industry standards, I will present a proposal on how an appraiser should assess the quality of an AI-based AVM, both before and during its use.

Keywords: Artificial Intelligence; Automated Valuation Models; Property Valuation; Real estate appraisers (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2024-01-01
New Economics Papers: this item is included in nep-eur and nep-inv
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