How is property valued in partition – real and market value

In both judicial and voluntary partition of property, one of the key questions is: “How much is the property worth?” The answer is not always simple, as there is a difference between the real value (material, physical worth) and the market value (the amount achievable in a sale).

Real value of the property
The “real value” often refers to the physical worth of the land or building, excluding current market conditions. It includes:

• construction cost (materials and labor),

• condition of the property (wear, repairs),

• usability.

Real value is mainly relevant for technical and accounting purposes but does not always reflect what a buyer would pay on the market.

Market value of the property
Market value is the price obtainable in a free transaction at a given time. It is determined by:

• prices of comparable properties in the area,

• location, infrastructure, transport,

• encumbrances (mortgages, rights of use),

• economic conditions and market demand.

Case law of the Supreme Court of Cassation (2015) emphasizes that in partition proceedings, the market value is decisive to ensure fairness between co-owners.

Role of experts
The court appoints a licensed property appraiser who prepares a valuation report. The report includes a detailed description of the property and the method used to calculate its value. Parties may also submit private valuations or request a new expert opinion if the first one is disputed.

How to challenge a valuation

• Contesting the expert report in court, explaining why the valuation is unrealistic.

• Requesting a second or triple expert appraisal.

• Providing comparable sales contracts as evidence.

Conclusion
In property partition, market value is the decisive criterion used by courts to ensure equality among co-owners. Real value has technical meaning, but the actual division is based on market price.