An arm's length transaction refers to a deal in which both parties act independently and in their own self-interest, ensuring that the transaction reflects true market value.
Condemnation refers to the process by which private property is taken for public use with compensation provided to the property owner. This is often done under the legal right known as eminent domain. Alternatively, it can also refer to the declaration of a structure as unfit for use.
Fair market value (FMV) is a critical concept in real estate, representing the estimated price at which a property would sell in the open market under normal circumstances. It is commonly used in property tax assessments, sales valuations, and condemnation proceedings.
Fair Market Value (FMV) is the price that a property would sell for on the open market. Calculating FMV helps in real estate transactions, taxation, litigation, and insurance claims.
Fair value is a measure used for the estimation of the market value of assets and liabilities based on orderly transactions between market participants. This valuation concept is essential in accounting to maintain proper financial statements and balance sheets according to standard principles.
Just Compensation refers to the amount of money paid to a property owner when their property is legally taken by the government under the power of eminent domain. The payment is intended to be equivalent to the Fair Market Value of the property taken.
A stepped-up basis is an adjustment to the tax basis of inherited property, increasing the basis to the property's fair market value at the time of the original owner's death, thus minimizing capital gains tax for the heirs.
A willing buyer is a person who expresses genuine interest in purchasing a property under common market conditions, without being under undue pressure or compulsion.
