Can Encumbrances Affect a Property’s Assessed Value?
Yes, sometimes they can. A property may be subject to so many restrictions as to have no real value. Common area in a residential or commercial development is a potential example. The argument would be that any value associated with the common area should be included in the value of individual lots or condominium units. See, e.g., Waterville Estates Association v. Town of Campton 122 N.H. 506 (1982), in which the New Hampshire Supreme Court ruled that condominium common a