Borealis Appraisals Ltd.
Litigation Appraisal
What is an appraisal for litigation purposes?
A residential appraisal for litigation purposes is an evaluation of a property’s value conducted in the context of a legal dispute. This type of appraisal is typically requested to provide an impartial and professional opinion of the property’s value, which can be used as evidence in court or settlement discussions. Legal representatives of the disputing parties typically arrange for the appraisal.
Such appraisals are commonly required for cases such as:
- Divorce proceedings: To determine the value of a shared property for Division of Assets.
- Property disputes: Involving disagreements over ownership, boundaries, or damages.
- Estate matters: To assess the value of a property for inheritance or estate tax purposes.
- Foreclosure cases: To establish the current market value of a property involved in foreclosure proceedings.
How is the appraisal completed?
The appraiser will conduct a thorough inspection of the property, review comparable sales, and consider factors relevant to the case to provide an accurate, unbiased estimate of the property’s value. This appraisal serves as a key piece of evidence to support or challenge claims related to the property’s value in legal proceedings.
If the parties have agreed to settle the dispute through mediation, one appraisal may be used to settle on a value acceptable to both parties. However, both parties of the legal dispute may provide and submit a professional appraisal report, in which case a common or median value is usually agreed upon by the disputing parties. Each appraiser may face cross examination by the opposing party and held to an extremely high standard in terms of their knowledge and expertise of the property in question. A litigation appraisal is much more complex than an appraisal for mortgage financing purposes and the fees reflect the larger scope of work. Additional fees may be required if the appraiser is required to attend court and/or provide expert testimony.