The International Association of Assessing Officers Board of Directors on Friday, August 2, 2019, unanimously approved and released as the position of the Association the White Paper - “Setting the Record Straight on Fee Simple.”
Ongoing controversy regarding appraising the fee simple estate in real property has prompted the need for further discussion, and the paper, on this topic. Specific issues raised from the term fee simple absolute include whether a property should be valued as if vacant, whether the term assumes any encumbrances on the property, and whether fee simple implies market rent.
The paper states that “fee simple estate is the foundation of what assessors in many jurisdictions are asked to examine, and clarifying this concept will assist assessors, appraisers, the courts, and others in the appraisal community in maintaining consistency, credibility, and uniformity in assessment and appraisal practices.”
The paper is available for download at www.iaao.org/feesimple and on September 10th 2019, an educational session will be held on the paper at the 85th IAAO Annual Conference and Exposition in Niagara Falls, Ontario, Canada.
