When Determining Value, Equity Value is CMV Minus mortgages and Liens. Petition created a revocable living trust in 2006. In July 2006, her granddaughter charged in excess of $30,000 on Petitioner’s credit cards before the granddaughter was hospitalized.  Thereafter, Petitioner fell behind on the mortgage and her home was in danger of foreclosure. Petitioner and her son listed the home for sale at $100,0000. Due to market conditions and the need for repairs, Petitioner was initially unable to sell the home. Eventually it sold for $80,000 with Petitioner receiving $4,473.33 after payment of debts. DFCS assessed a transfer penalty because the home was assessed at $143,000. The presumptive FMV is the assessed value; however, fair market value denotes the amount a knowledgeable buyer would pay for the property and a willing selling would accept for the property at an arm’s length bona fide sale O.C.G.A. 48-5-2 (defining fair market value). “In this case Petitioner has rebutted Respondent’s presumption that the fair market value of the real property was $143,000 with credible evidence that it was worth only $80,000 and that Petitioner received only $4,473.33 at closing.” Imposition of a transfer penalty based on the assessed value was reversed. Petitioner was directed to provide closing documents within 15 days to show why Petitioner only received $4,473.33.

OSAH-Unknown-Teate-12-2008.pdf (December 17, 2008).