Also known as: market values · fair market value · FMV
Written by attorneys · grounded in primary & secondary sources — see below
The price that would result from negotiation and mutual agreement after ample time to find a purchaser between a vendor who is willing but not compelled to sell and a purchaser who is willing to buy but not compelled to take a particular piece of real estate.
Miles Montgomery held a lease on commercial space owned by Morgan Financial. After discovering a material breach by the landlord Miles exercised his right to terminate. The court calculated his damages to include the fair market value of the lease on the termination date.
After appointment as personal representative Michael Miller prepared the required inventory of the decedent's assets within three months. For each item he listed its fair market value as of the date of death along with any encumbrances.
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Ambler Realty owned land zoned for industrial use with a market value of ten thousand dollars per acre. After a new ordinance restricted the parcel to residential use the value dropped to twenty-five hundred dollars per acre prompting a constitutional challenge.
Zacchini performed a human cannonball act at a county fair. When a broadcaster televised the entire performance without consent the court recognized that the unauthorized use deprived him of the market value he normally charged for admission to see the act.
San Antonio school districts relied on local property taxes to supplement state funding. Differences in the market value of taxable property across districts produced wide variations in per-pupil revenue leading to an equal-protection challenge.
NCS Health Care entered a merger agreement with Genesis. A later competing cash offer from Omnicare exceeded twice the then-current market value of the shares to be received under the Genesis deal prompting the board to withdraw its recommendation.
A deficiency defendant may request a determination of fair market value as of the foreclosure sale date. If that value exceeds the sale price the defendant receives an offset against any deficiency equal to the difference after subtracting senior liens that survived foreclosure.
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No. Fair market value is defined without reference to the foreclosure process and may be established by comparable sales income capitalization or reproduction cost less depreciation. Courts use the higher of fair market value or sale price when calculating any deficiency.
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Within three months after appointment the representative must list each asset with reasonable detail and state its fair market value as of the date of death together with any encumbrance. The representative may hire a qualified appraiser when value is uncertain.
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…which it is especially adapted, being immediately in the path of progressive industrial development; that for such uses it has a market value of about $10,000 per acre, but if the use be limited to residential purposes the market value is not in excess of $2,500 per acre; that the first 200 feet of the parcel back from Euclid…