Legal Question in Real Estate Law in California

Re: Reappraisal of Land #2

Why does an appraisal have anything to do with it?

I suppose once in a great while, a buyer and a seller will agree that the price of a piece of land will be determined by appraisal. Usually, they just negotiate the price. And even if an appraisal were used to set the price, once the ink is dry on the deed, changes in value would have zero effect on the deal, which is then a "done deal."

You can't reset the price of property after escrow closes, unless the deal itself has some very unusual after-the-fact price adjustment terms written into it. As a usual matter, the price when you buy is the price, period, end of story.

Suppose for example you buy 100 shares of IBM stock from a broker on Friday at $50 a share. On Monday, the market "reappraises" IBM at $45 a share. You have lost $500 on paper. Will your broker adjust the price, ex post facto? No way! You paid $50 a share, and that's that.

This seems so obvious - am I missing an important fact here?

Re: Reappraisal of Land #2

I think the confusion here is caused by your vague phrase "case for reappraisal." It's not clear what you mean by this phrase.

You can hire an appraiser to come out and value the land at any time. No case is needed. Clearly, you must mean something more.

Now, if the appraisal comes in lower than the price you paid, against whom do you seek to recover? If you are hoping to sue the seller for some money back, the answer is, quite likely, 'no.' However, if you are hoping to lower your real property taxes, that is possible through a Prop 8 reduction, for which you can apply through your county assessors office.