Ailing Seller Not Considered Arms’ Length Sale Participant for Comparable Sales Analysis
The Appellate Division of the New Jersey Superior Court recently affirmed the decision of a Tax Court judge which held that a subject sale was not an arms’ length sale because the seller was ill and accepted the first offer made by the buyer. Following a trial on the issue of valuation, the Tax Court issued a written opinion which found the seller was not a willing seller, and was compelled to sell the property as quickly as possible. Relying on the Tax Court’s factual findings, the Appellate Division found the house had been sitting vacant and the MLS listing noted that the house needed fixing up. The seller, in a nursing home and selling the house through his daughter by power-of-attorney, accepted the buyer’s offer without negotiation. Thus, the buyer failed to prove by a fair preponderance of the evidence that the property’s assessment was incorrect.
A copy of the Tax Court’s unpublished opinion in Gibbons v. City of East Orange, Docket No. 019151-2010 (Tax Ct. January 17, 2012) can be found here.
A copy of the Appellate Division’s unpublished opinion in Gibbons v. City of East Orange, A-3180-11T2 (App Div. June 18, 2013) can be found here.
For more discussion on New Jersey property tax appeal procedure, please see the following blog posts:
Tax Court to Municipality: Enough is Enough!
