When a sale says it all…
“There can be no better evidence of current value of a property than actual evidence of what a willing buyer paid to a willing seller in an arm’s length transaction on or about January 1st, 2008”
The quotation above is drawn from a recent decision of the ARB ruling on an appeal of a multi-tenant strip centre located in Niagara Falls, Ontario.
At question was an assessment that was 19% greater than an arm’s length transaction that occurred seven months in advance of the January 1st, 2008 valuation date.
The Board ruled in favour of the taxpayer and adjusted the assessment to the sale price.
1. It was easy and represented the path of least resistance
2. Hanging their hat on the sale to justify the large adjustment was logical for the Board and
A comparison between fair market rents (represented as gross income) of the subject and comparable properties (and their assessments) supported the subject falling in a range of comparables values of $2,230,000 to $2,748,000 – the decision and sale price fell right in the middle of this range.
Dunn and Drummond Inc., v Municipal Property Assessment Corp. Region No 18