Also known as: fair market values · FMV · market value
Written by attorneys · grounded in primary & secondary sources — see below
The price that would be agreed upon between a willing buyer and a willing seller in an arm's-length transaction, with neither party under compulsion to buy or sell and both having reasonable knowledge of relevant facts.
Fatima Flores, a commercial tenant, validly terminates her lease after the landlord fails to make required repairs. She vacates the premises and seeks damages. The court measures her recovery in part by the fair market value of the lease on the termination date to determine the loss of her contractual interest.
After appointment as personal representative, Finn Fletcher must inventory the decedent's assets within three months. He lists each item with reasonable detail and assigns its fair market value as of the date of death, noting any encumbrances, before mailing copies to interested persons.
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Fiona Foster owns a historic terminal building subject to a city landmarks ordinance that restricts development of the air rights. When the city condemns a portion of the property, the court awards just compensation based on the fair market value of the taken interest at the time of the taking.
Floyd Franklin and other heirs hold undivided fractional interests in allotted Indian lands. A federal statute bars inheritance of those interests outside the tribe. The Court holds that the statute effects a taking and requires payment of fair market value for the extinguished rights.
Flora Ford's realty company owns land rezoned for residential use only. The company claims the restriction destroys commercial value. The Court upholds the zoning but confirms that any compensable taking would be measured by the fair market value of the property at the time of the alleged deprivation.
Flagship Logistics executives learn of a major mineral discovery that will affect share prices. Before public announcement, they trade on the information. Liability turns in part on whether the undisclosed fact would have altered the fair market value of the securities in the eyes of a reasonable investor.
Courts may use the income approach by capitalizing net earnings or the cost approach by calculating reproduction cost less depreciation. These methods substitute for direct market data when no recent arm's-length sales of similar property exist.
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No. Fair market value reflects the objective price between willing parties in an arm's-length transaction. Subjective or sentimental value above that price is not compensable under the standard definition.
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It is measured as of the date of the foreclosure sale. The mortgagor may request a determination, and any excess of fair market value over the sale price offsets the deficiency after deducting liens not extinguished by the sale.
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Gifted property is valued at its fair market value on the date of the gift. That value determines the donor's basis and any taxable gift amount after applying exclusions and credits.
…the city has “taken” their right to this superjacent airspace, thus entitling them to “just compensation” measured by the fair market value of these air rights. Apart from our own disagreement with appellants’ characterization of the effect of the New York City law, see infra , at 134-135, the submission that appellants may…