Specialized Asset Types

Litigation Appraisal – Divorce Appraisal

Overview

Divorce Appraisal – Usually when there is a divorce the property that is jointly held needs to be divided. In the case of Latin America, there are often second homes, single family residential property, condos and other assets that would need to be divided as part of a divorce property settlement. This type of appraisal is referred to as a divorce appraisal. LOGAN has done divorce appraisals in Mexico, Colombia, and Costa Rica.

Litigation appraisals are also undertaken by LOGAN when there is need. This type of report is needed when there is a lawsuit in real estate and assets need to be valued. The typical case is during a foreclosure, or a dispute during a joint-venture. LOGAN has worked in litigation appraisals in Colombia and in Mexico. Often these types of appraisals include expert witness testimony as well an appraisal. This is when an appraiser testifies before a judge or jury in order to explain and defend his appraisal or opinion.

LOGAN has provided expert witness testimony in Colombia and in Mexico.

Types

  • Divorce appraisal
  • Bankruptcy appraisal
  • Joint-venture litigation appraisal
  • Foreclosure appraisal

Approaches, Relevance

Cost – this is a typical approach used in many appraisals

Sales comp or market approach – comp approach may be utilized

Income capitalization – depending on the type of property this approach may be used

DCF – the discounted cash flow method is used with commercial property


Value Impacting Factors

In a divorce settlement, the location of the assets is fundamental. Often second homes in resort destinations are held by Americans and Europeans. These resort destinations often have single family homes and condos that are beachfront and are generally have high values. These resort markets include Cabo San Lucas, San Jose del Cabo, Puerto Vallarta, Cancun, Tulum, Tamarindo, and Papagayo.

Litigation – factors in litigation can vary significantly depending on the asset in question. Litigation often implies that high valued property is involved, however the value impacting factors can be diverse.


Important Inputs

  • Location of asset
  • Type of asset
  • Size and construction quality

Recent Trends

  • Tendency of more US and Europeans buying property in Mexico, Costa Rica.
  • Number of divorces are increasing in the US and Europe.
  • Litigation in real estate is increasing – especially during tough financial times.

Deliverable

Narrative Appraisal Report

A. Value considerations – summary.
B. Scope, purpose, limitations.
C. Description of site.
D. Improvement description.
E. Scope of work.
F. HBU.
G. Approaches to value.
H. Reconciliation.
I. Statement of Certification

Notable Markets

 

Colombia Mexico Peru CR-CA
1 Cartagena Cancun Lima, Miraflores Papagayo
2 Baru Puerto Vallarta Lima, San Isidro Tamarindo
3 Medellin Tulum Lima, Santa Cruz Samara

Leadership Team

Leadership Across Latin America's
Principal Markets.

Other case studies

Latam Logistic Properties – Industrial Market Study Colombia, Peru

Project Leaders: Diego Rodríguez Rueda MRICS, Paola Raba Need The client needed to understand and keep track of the dynamics of the logistics.

CCLA – Multifamily Market Study Colombia

Project Leaders: Diego Rodriguez Rueda, MRICS; Paola Raba. Market analysis for the first institutional Multifamily project in Colombia, Nomad 77 (127 Units).

Local teams. Regional standards.
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