AI-assisted research summary: In partition actions involving heirs property, the court must determine fair market value, usually by ordering an appraisal, with notice and hearing steps that follow.
12-3405 - Determination of value 12-3405. Determination of value A. If the court determines that the property that is the subject of a partition action is heirs property, the court shall determine the fair market value of the heirs property by ordering an appraisal pursuant to subsection B of this section, unless one of the following applies: 1. If all cotenants have agreed to the value of the property or to another method of valuation, the court shall adopt that value or the value produced by the agreed method of valuation. 2. If the court determines that the evidentiary value of an appraisal is outweighed by the cost of the appraisal, the court, after an evidentiary hearing, shall determine the fair market value of the property and provide notice to the parties of the value. B. If the court orders an appraisal, the court shall appoint a disinterested real estate appraiser licensed in this state to determine the fair market value of the property assuming sole ownership of the fee simple estate. On completion of the appraisal, the appraiser shall file a sworn or verified appraisal with the court. If an appraisal is conducted pursuant to this subsection, the court shall provide notice of the appraisal to each party with a known address not later than ten days after the appraisal is filed. The notice shall include all of the following: 1. The appraised fair market value of the property. 2. That the appraisal is available at the court clerk's office. 3. That a party may file with the court an objection to the appraisal not later than thirty days after the notice is provided. The objection shall state the grounds for the objection. C. If an appraisal is filed with the court pursuant to subsection B of this section, the court shall conduct a hearing to determine the fair market value of the property not sooner than thirty days after a copy of the notice of the appraisal is provided to each party pursuant to subsection B of this section, whether or not an objection to the appraisal is filed pursuant to subsection B, paragraph 3 of this section. In addition to the court-ordered appraisal, the court may consider any other evidence of value offered by a party. After the hearing but before considering the merits of the partition action, the court shall determine the fair market value of the property and provide notice to the parties of the determination of value.