Realizable value/Liquidation value

The realizable or liquidation value is different than the market value, in that it does not fall under normal market conditions.

In this context, the seller - often a mortgagee - must sell a property that’s generally in poor condition or that’s been neglected, within a short period of time and without legal warranty. These special conditions can also be applied to the settlement of an estate or in case of incapacity.

In the case of a curatorship or executor of estate, the chartered appraiser can help market the property at the fair price in order to achieve the liquidation value and realizable value within the deadlines.

The Ordre des Évaluateurs Agréés du Québec defines the liquidation value as the most probable selling price of the property or an interest in a property that meets the following conditions:

  • l’acheteur est prudent et agit en pleine connaissance de cause, alors que le vendeur est contraint de vendre;
  • la vente doit se produire dans un court laps de temps spécifié par le vendeur;
  • les efforts de mise en marché sont limités;
  • le paiement est exprimé en argent comptant (dollars canadiens) ou équivalent à de l’argent comptant;
  • le prix de vente doit faire abstraction de toute considération étrangère à l’immeuble lui-même et doit représenter la vraie considération épurée de l’impact des mesures incitatives, de conditions et de financement avantageux.

Gauthier Roy Huot Évaluateurs Agréés is often called upon by a variety of clients to determine the value of the mortgage lien in the realization of a security. The expertise of the chartered appraiser is therefore essential in the sale process under control of justice, since the court will partially rely on our information to fix the price of a building.


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