Partitions: Determination of Value
Determining how much the property is worth is an important, but potentially contentious, part of the partition process. How do you determine the worth? What if you don’t agree with the valuation? The UPHPA provides some guidance:
First, the court must determine the fair market value of the property. This can be accomplished by appraisal or evidentiary hearing.
If the appraisal method is chosen, the appraisal will be conducted by an impartial real estate agent, licensed to determine fair market value.
Once the appraisal is made, you can object within 30 days.
Ultimately, no matter which method, the court will conduct a hearing to determine fair market value, and the court will consider the appraisal and other evidence.
Alternatively, if all cotenants agree to a value or to a method of valuation, then the court will use the agreed value or agreed method.
Through these steps, it’s clear how the UPHPA removes the potential contention in value determination. If all parties agree, then there’s no issue. If there’s some dispute, then a neutral professional appraises the property. And even then, there are other checks and balances like objections, the court as the final decision maker, and the introduction of other evidence.
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