Handy forms help value undivided interests in real estate

BVWireIssue #175-1
April 5, 2017

It is essential when valuing an undivided interest in real estate to do a partition analysis based on local law, advises Ted Israel (Israel Frey Group LLP), who conducted a recent BVR webinar. Whether the case is contested or uncontested, ignoring the possibility of a partition by sale as a path to liquidity is a serious gaffe, he warns. “You have to allow that the IRS will offer its own partition analysis, and it may be based on assumptions inconsistent with your own. Therefore, the analyst needs to prepare his or her own well-reasoned and supportable partition analysis.”

Two practice aids: Israel made available to webinar attendees an interview form designed to help gather information regarding the costs and duration of a partition action. Each state has its own laws governing partition, so you need to research the area where the property is located. You can use this form to guide your questions when you find an attorney with knowledge and experience with partition actions in the subject’s locality.

Israel also provided an information request form for collecting financial data on the property and to ask for a narrative of the property’s history. He has generously agreed to make these two documents available to BVWire readers as a complimentary download.

And there’s more: You’ll receive a slew of other reading material, including related court cases and articles, if you watch a replay of Israel’s webinar, Valuing Undivided Interests in Real Estate.

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