In the preceding situation, what does the $30,000 beyond the value of the part taken represent?
Correct Answer
B) Severance damage to the remaining land
Why this is correct: Severance damage is the loss in value to the remaining property caused by the taking, due to factors like impaired access, awkward configuration, or loss of amenities. It is compensable in addition to the value of the land physically taken. Why the other choices are wrong: 'An error in the appraiser's arithmetic' is incorrect; the $30,000 is a legitimate component of damages. 'The cost to cure the physical damage' might address the damage but is not its definition; severance damage is a loss in value. 'A premium paid for the early possession' is unrelated to severance damage. Exam tip: Severance damage is the loss in value to the *remainder* caused by the taking, not the cost to repair anything.
Why This Is the Correct Answer
Why this is correct: Severance damage is the loss in value to the remaining property caused by the taking, due to factors like impaired access, awkward configuration, or loss of amenities. It is compensable in addition to the value of the land physically taken. Why the other choices are wrong: 'An error in the appraiser's arithmetic' is incorrect; the $30,000 is a legitimate component of damages. 'The cost to cure the physical damage' might address the damage but is not its definition; severance damage is a loss in value. 'A premium paid for the early possession' is unrelated to severance damage. Exam tip: Severance damage is the loss in value to the *remainder* caused by the taking, not the cost to repair anything.
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Previous Question
A proposed subdivision site has frontage on two non-parallel streets, resulting in irregular lot shapes and varying depths. When estimating lot values for the land residual calculation, the appraiser adjusts comparable lot sales using depth tables. Which principle most directly supports the use of such adjustments?
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