Types Of Cases

Environmental contamination can involve multiple exposure pathways, including air, water and/or soil. The impact on real property can vary depending on the type and level of the contaminant, regulatory oversight, and the relationship of the contamination to the subject property. The acronym SNAP is sometimes used to describe this relationship – S is a source property from which contamination is released, N is a non-source property with contamination originating from another (source) property, A is an adjacent property that is not contaminated but shares a boundary with a contaminated property, and P is a proximate property that is neither contaminated nor adjacent to a contaminated property.

These conditions can occur naturally from ancient landslides, slope movement, erosion, subsidence or expansive soils; or they might be man-made problems resulting from improper compaction, water leakage, drainage problems, inadequate construction or fracking. Because these involve subsurface issues, assessment and repair costs can be significant, requiring consideration of functional impact and the economic feasibility of making repairs.

Construction is a complex process, typically involving multiple natural or manufactured products, a labor-intensive endeavor involving multiple trades and coordination. Changes in acceptable materials, construction practices and building codes sometimes render older structures obsolete, even if they were state-of-the-art in their day. Construction defects are often alleged when a structure does not perform as expected, construction was not performed in accordance with plans/specifications or applicable codes, not completed in a workmanlike manner, and suffers resultant physical damage.

Water intrusion into the building envelope is part of part of many construction claims, but can happen in a variety of circumstances, including broken pipes, roof/window leaks or faulty irrigation systems. Allegations of mold were common for many years in water intrusion cases, but have become less common over the years. Sewer backups are another potential source of water intrusion, often with associated bacterial contamination, sometimes referred to as a "black water" event (also used to describe an excess of organic material in waterways that deplete oxygen levels).

A desirable vista from a property can include water, city lights, natural settings, golf courses and other amenities; these views are normally considered an enhancement to value. On the other hand, undesirable views might include incompatible land uses, dilapidated buildings or junk vehicles, which may be detrimental to value. Privacy, while valued in the marketplace, particularly for residential property, is often relative – privacy expectations for a large estate property will be quite different from those of an urban apartment building. Closely related to privacy is the concept of visibility, which is generally a desirable feature for many commercial properties that benefit from exposure to the general public.

An easement is a property right granted for a specific purpose, sometimes applicable for a specific time period. Easements can benefit another specific property (appurtenant easement) and typically become part of the chain of title, or they can benefit an individual or company rather than a specific property (easement in gross) without becoming part of the title. Easements can be created by express grant or reservation, recorded covenant or dedication; easements can also be created by implied grant or reservation, necessity or prescription. An encroachment occurs when there is an interference or intrusion onto someone else's property. Cases involving encroachments often give rise to competing claims for an easement of necessity or prescription; the claimed easement effectively benefits the encroaching property, while the encroachment negatively affects the other property. Title defects can involve recorded easements that are not included as exceptions from coverage in a policy of title insurance, but can also involve other types of encumbrances or incorrect legal descriptions.

Transactional conditions relate to a specific transaction rather than to the property itself. These conditions can result in actual prices that are above or below the market; examples include assemblage and distress conditions. Market conditions relate to price trends, reflecting increasing, decreasing or stable markets. Market conditions are important to consider, as alleged value diminution might reflect nothing more than changes in market pricing over time.

Eminent domain (condemnation) refers to the power of government to take private property for public use, requiring payment of "just compensation." The controversial Kelo v. New London case in 2005 effectively expanded the definition of public use to include economic benefits, prompting many states to respond with eminent domain reforms to strengthen property rights. Besides governmental entities, others can also be authorized by statute to exercise the power of condemnation, including public utilities and certain quasi-public agencies. Takings in eminent domain can involve an entire property (full take) or a portion of a property (partial take). While eminent domain actions are normally filed by a condemning agency, inverse condemnation actions are brought by a property owner alleging damage caused by a public use.

Estate and casualty loss appraisals both fall under the auspices of the Internal Revenue Service (Department of the Treasury). Estate appraisals are typically required when someone dies, with the effective date normally corresponding to the date of death. Casualty losses are associated with damage, destruction or loss of property due to sudden, unexpected or unusual events.

External conditions are those outside the boundary of the subject property. Airport noise is one of the most common, and has probably generated the largest number of studies and journal articles over the years, although there are many sources of noise nuisance than can be objectionable in the marketplace – traffic, events and parties, loud music, barking dogs and construction, to name a few. Visual nuisance conditions can include transmission lines, cellular towers, wind turbines, electronic billboards or dilapidated buildings. Olfactory nuisances might include industrial operations, animal husbandry and associated processing facilities, landfills or sewage treatment plants. Other undesirable conditions might involve vibration, dust and particulate matter, pests, etc. Proximity studies are frequently used to analyze the impact of such conditions, often employing statistical models.

These can involve flooding, wildfires, drought, hurricanes, tornadoes, earthquakes and volcanic activity. The human and economic toll from natural disasters is enormous; unfortunately, climate change is exacerbating conditions that result in natural disasters.

Property taxes are a consequence of owning real property, and are assessed differently in different states. California's system is based on Proposition 13, enacted in 1978, limiting property tax to 1% of assessed value plus bonded indebtedness (ad valorem taxes), and restricting annual increases to 2% unless a property is sold, at which time the property is reassessed (usually at the sales price), generating a new "base year." Appeals can involve either annual assessments or base year assessments, where the property owner believes that the assessed value is significantly higher than it should be.

California has statutory disclosure requirements for the sale of residential property affecting both the parties and their agents, including a duty "to disclose any fact materially affecting the value and desirability of the property," including three important disclosure forms – the Seller Property Questionnaire (SPQ which is required under the standard contract but not by law), Transfer Disclosure Statement (TDS) and Agent Visual Inspection Disclosure (AVID). While commercial properties also have disclosure requirements, they are less rigorous than for residential properties (1-4 units). A Subdivision Final Public Report ("white report") is also required in connection with marketing most new residential subdivisions. Lawsuits often result when a buyer believes that disclosures were not adequate or sufficient.

While diminution in value is often alleged in cases involving real estate damages, loss of use is another category of damages, reflecting loss of use of all or a portion of a property because of damage, or loss of use during proposed repairs. Rental value is the metric used to measure the value of use and occupancy.

Real estate is often part of a marital estate, and requires valuation in connection with dissolution proceedings. It is common for the parties to each retain their own appraiser, but sometimes there is an agreement to jointly retain a single appraiser.

Appraisal review entails developing an opinion about the quality of another appraiser's work. This critique can be the appraisal assignment, or it can be part of an assignment that also involves affirmative valuation opinions by the reviewer. It is also permissible for the appraisal reviewer to develop his/her own opinion of value within the context of an appraisal review. Sometimes an opposing valuation expert is not an appraiser, often a real estate broker/agent. A critique of opinions developed by a non-appraiser is not an appraisal review; while the Uniform Standards of Professional Practice are not applicable in such assignments, real estate agents and brokers are members of the National Association of Realtors (NAR), and are subject to the Code of Ethics and Standards of Practice of that organization.