Which ownership type can complicate the appraisal value of a property due to shared interests?

In the context of property ownership, tenancy in common can complicate the appraisal value due to the presence of shared interests among multiple owners. In a tenancy in common arrangement, each owner holds an individual, undivided interest in the entire property. This means that each tenant has the right to occupy and use the whole property, but their interest can be sold or transferred independently of the other owners.

This arrangement can lead to complications in valuation because the percentage of ownership can vary significantly, creating challenges in determining how much each owner's share contributes to the overall market value of the property. Furthermore, the marketability of an individual share may be less attractive to potential buyers, impacting the selling price and, subsequently, the appraised value.

The other ownership types, such as joint tenancy, tenancy by the entirety, and lifetime interest, have their own unique characteristics but typically involve more straightforward valuations due to the nature of ownership. In joint tenancy, for example, all owners have equal shares, and upon the death of one owner, their interest automatically passes to the surviving owners, simplifying the appraisal process. Tenancy by the entirety is a type of joint ownership specifically for married couples, which also generally leads to fewer complications. A lifetime interest grants one party rights to use