One might have thought that, in ‘market value’ jurisdictions in Canada, such questions as posed in the Discussion Paper are largely settled. real property assessment and taxation and.The authors provide three examples where understanding the valuation requirements for the fee simple interest is critical:
For example, what does the notion of ‘unencumbered’ mean in the context of valuing the fee simple interest? An example of the questions posed in the Discussion Paper is the following:ĭoes fee simple mean vacant and available for lease or occupancy? If so, should deductions be taken for lease-up and cost? Does fee simple imply a ‘go dark’ scenario?
The impetus for the Discussion Paper is the perception that the requirements for valuing the fee simple interest have become muddled. On December 21, 2017, a document entitled Property Rights Symposium Discussion Paper ( Discussion Paper) was prepared to report on the symposium discussions, to identify questions to be addressed and to solicit comment from interested parties. In September 2017, the Appraisal Institute (US) held a Property Rights Symposium to consider issues relating to the valuation of fee simple estates.
