Because it is state property, the fee estate
owned by the University is not taxable.
declined to isolate airspace rights from the fee estate
for purposes of
They are also experienced in flat fee Estate
Planning (including wills, trusts and powers of attorney) in addition to flat fees for, Court Attorneys.
While FAQ 193 suggests that intangibles exist in the example provided, the conclusion does in fact resolve the issue; it states, "the subject of this appraisal is real property, not intangibles, specifically the leased fee estate
." This clarifies that in the example the assignment is to provide a value opinion of the property owner's leased fee interest, i.e., the value of the owner's interest in the physical real estate, whereby the rights of use and occupancy have been temporarily lent to a tenant in exchange for rent.
For example, in the instance of the case study property, a lease provision prohibits the lease payment to the ground lessor (leased fee estate
) from ever declining, and a second lease provision prohibits assignment of the leasehold interest to a lessee with a credit rating inferior to that of the original lessee.
Any time the full right of occupancy cannot be transferred with a property due to the presence of tenants, a leased fee estate
If the lease is to be included, then the property appraised would be the leased fee estate
As a result, answering such a question would result in an estimate of the value in use of the leased fee estate
: the right answer to the wrong question, which is the whole point of my article.
When a property is leased and it sells, what sells is the leased fee estate
. However, if the assignment is to estimate the market value of the fee simple interest, then the appraiser is going to estimate something that is unreal in terms of what would actually transfer.
On appeal, the Alliance argued, in part, that the trial court improperly awarded the owners the state bond commission grant funds asserting that the grant money was not part of the condemned fee estate
and was available only to governmental entities.
For the reason stated above, it is virtually impossible to independently value a leased fee estate
in the sales comparison and cost approaches.
Ownership interests (customarily valued) can be the fee simple estate, leased fee estate
, leasehold estate, or a fractional interest in real estate ownership.