About This Practice
This guidance covers Practice 9H, which includes two elements:
⬤ When buying land, conservation easements or other real property interests, obtain an independent appraisal by a qualified appraiser in advance of closing to support the purchase price
⬤ a. However, a letter of opinion from a qualified real estate professional may be obtained in the limited circumstances when:
⬤ i. A property has a very low economic value
⬤ ii. A full appraisal is not feasible before a public auction
⬤ iii. Or the amount paid is significantly below market value
⬤ In limited circumstances where acquiring land, conservation easements or other real property interests above the appraised value is warranted, contemporaneously document:
⬤ a. The justification for the purchase price
⬤ b. That there is no private inurement or impermissible private benefit
⬤ Accreditation indicator element | ■ Terrafirma enrollment prerequisite | ▲ Required for both
March 2023 update: Added accreditation requirement for addressing appraisal concerns under Practice Element 9H1.
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