Real Estate & Property Law

Lawyer recognizes serious problems regarding broker testimony of value in condemnation cases

By Alan Ackerman

David B. Snyder of Philadelphia's Fox Rothschild wrote a very short, concise and accurate synopsis on broker testimony for Lexology.  The issue is a serious one in many jurisdictions.  By example, some jurisdictions only allow licensed real estate appraisers to perform valuation analysis in eminent domain proceedings.  Michigan is one of the States that requires a licensed real estate appraiser as the only expert valuation witness other than the owner.  

The reason many States now require licenses prior to allowing the valuation testimony in an eminent domain proceeding is because most States have followed a USPAP program with multi-level certifications.  This arises out of the 1990 Savings and Loan fiasco.  Clearly, the appraisal licensing process is not perfect.  Wild market gyrations have now occurred over the last three years.  However, without the licensing programs, things would be much worse.

Lexology

This has been a contentious issue for some time. There are circumstances where real estate experts who are not appraisers can provide a valuation opinion. For example, Pennsylvania Courts have expressly ruled that real estate brokers can serve as valuation experts in eminent domain cases even if they do not have a real estate appraiser license.

Of course, any professional should consider the relevant law – statutory or case law – before he or she provides a valuation opinion.

 

Full post as published by National Eminent Domain Blog on June 14, 2010 (boomark / email).