1. Multiple owners

7. Kinds of Property Real; land and whatever is built on it or attached to it Personal – Tangible ; livestock, machinery, … – Intangible; stocks, bonds, bank accounts, …

8. Elements of Ownership Degree of interest or control; bundle of rights fee simple, life estates, etc. Relationship of the owners – Tenancy in common; This is the least used possibly due to misunderstanding Undivided interest that you can pass on to your heirs Not necessary that each party own the same amount

9. Joint tenancy; – Undivided interest that passes back to the other owners upon death. It doesn’t matter what a will says, if the property is held joint tenants then the property still reverts to the other owner(s) Tenancy in common favored in the Iowa law, if a will doesn’t specify then it will revert to tenants in common.

10. Tenancy in entirety and community property used in other states Which is best depends on circumstances – Jt. Tenancy lets you keep the property in the immediate family; creates problems if the order of death isn’t the ‘natural’ expectation – Tenants in common lets you pass the property to your heirs

11. Remedies for co-tenant – Sell undivided interest – Voluntary partition – Court ordered partition Selling is difficult due to few buyers, limited financing availability, other owners, etc. If court can’t divide property equally it will sell it and divide the money

12. Valuing Undivided Interests Start like any other appraisal; define the problem, determine the objectives and determine the highest and best use. Value the property as if it was normal – Then value undivided interest Size, type of operation, other parties involved, what happens to HBU after partitioning, and so forth What is the appropriate discount rate

13. Valuing a Partition Dividing the property equally should be the focus of the appraisal; equal will not necessarily be in terms of acres but rather dollars Appraiser has to determine what is the best way to divide the property “Appraisers must have vision to consider the property before and after the division and make the most equitable division possible.”