EVIDENCE OF MARKET VALUE OF PROPERTY Flashcards
§ 810 - Application of Article
(a) Except otherwise provided by statute, this article provides special rules of evidence applicable to any action in which the value of property is to be ascertained.
(b) This article does not govern ad valorem property tax assessment or equalization proceedings.
§ 811 - Value of Property
As used in this article, “value of property” means market value of:
(a) Real property or any interest therein; and
(b) Tangible personal property valued as a unit.
§ 812 - Market Value: Interpretation of Meaning
This article is not intended to alter or change the existing substantive law, whether statutory or decisional, interpreting the meaning of “market value,” whether denominated “fair market value” or otherwise.
§ 813 - Value of Property: Authorized opinions: View of Property: Admissible Evidence
Only the following people may offer an opinion as to the value of property or a property interest:
(1) Witnesses qualified to express such opinions.
(2) The owner or the spouse of the owner of the property being valued.
(3) An agent of the entity that owns the property being valued, if the designee is knowledgeable as to the value of the property or property interest.
§ 814 - Matter Upon Which Opinion Must be Based
The opinion of a witness as to the value of property is limited to such an opinion as is based on matter perceived by or personally known to the witness or made known to the witness at or before the hearing, whether or not admissible, that is of a type that reasonably may be relied upon by an expert in forming an opinion as to the value of property, including but not limited to the matters listed in Sections 815 to 821, unless a witness is precluded by law from using such matter as a basis for an opinion.
§ 815 - Sales of Subject Property
When relevant to the determination of the value of property, a witness may take into account as a basis for an opinion the price and other terms and circumstances of any sale or contract to sell and purchase the property if the sale or contract was freely made in good faith within a reasonable time before or after the date of valuation.
§ 816 - Comparable Sales
When relevant to the determination of the value of property, a witness may take into account as a basis for his opinion the price and other terms and circumstances of any sale or contract to sell and purchase comparable property.
To be considered comparable:
The sale or contract must have been made sufficiently near in time to the date of valuation.
The property sold must be located sufficiently near the property being valued.
The property sold must be sufficiently alike in character, size, situation, usability, and improvements.
§ 817 - Leases of Subject Property
(a) Subject to subdivision (b), when relevant to the determination of the value of property, a witness may take into account as a basis for an opinion the rent reserved and other terms and circumstances of any lease which included the property being valued or any part thereof that was in effect within a reasonable time before or after the date of valuation. (i.e., property used as a residence?)
(b) A witness may take into account a lease providing for a rental fixed by a percentage or other measurable portion of gross sales or gross income from a business conducted on the leased property only for the purpose of arriving at an opinion as to the reasonable net rental value attributable to the property being valued as provided in Section 819 or determining the value of a leasehold interest. (i.e., property used for a business?)
§ 818 - Comparable Leases
For the purpose of determining the capitalized value of the reasonable net rental value attributable to the property being valued as provided in Section 819 or determining the value of a leasehold interest, a witness may take into account as a basis for his opinion the rent reserved and other terms and circumstances of any lease of comparable property if the lease was freely made in good faith within a reasonable time before or after the date of valuation.
§ 819 - Capitalization of Income
When relevant to the determination of the value of property, a witness may take into account as a basis for his opinion the capitalized value of the reasonable net rental value attributable to the land and existing improvements thereon (as distinguished from the capitalized value of the income or profits attributable to the business conducted thereon).
§ 820 - Reproduction Cost
When relevant to the determination of the value of property, a witness may take into account as a basis for his opinion the value of a property as indicated by the value of the land together with the cost of replacing or reproducing the existing improvements thereon, if the improvements enhance the value of the property for its highest and best use, less whatever depreciation or obsolescence the improvements have suffered.
§ 821 - Conditions in General Vicinity of Subject Property
When relevant to the determination of the value of property, a witness may take into account as a basis for his opinion the nature of the improvements on properties in the general vicinity of the property or property interest being valued and the character of the existing uses being made of such properties.
§ 823 - Property with NO Relevant Comparable Market
The value of property for which there is no relevant, comparable market may be determined by any method of valuation that is just and equitable.
§ 824 - Non-Profit Special Use Property
(a) A just and equitable method of determining the value of nonprofit, special use property (CCP § 1235.155) for which there is no relevant, comparable market, is the cost of purchasing land and the reasonable cost of making it suitable for the conduct of the same nonprofit, special use, together with the cost of constructing similar improvements.
The method for determining compensation for improvements shall be as set forth in subdivision (b).
(b) A witness providing opinion testimony on the value of nonprofit, special use property (CCP § 1235.155) for which there is no relevant, comparable market, shall base his or her opinion on the value of reproducing the improvements without taking into consideration any depreciation or obsolescence of the improvements.
