Does the value of a jointly owned property have to be discounted because the wife’s sister has a joint interest in the property?

Counsel for the wife contends that the value of the land should be further discounted because the wife’s sister has a joint interest in it. In support of her argument, she cites Agioritis v. Agioritis (1981), 1981 CanLII 4153 (SK UFC), 25 R.F.L.(2d) 256. In that case, the court discounted the appraised value of shares of capital stock in a corporation because the minority shareholder was vulnerable to the interests and demands of other shareholders. Counsel argues that the same consideration should apply to jointly owned land. Because the wife cannot alone dispose of it, counsel argues that her interest should be valued at something less than 50% of its fair market value. Furthermore, she argues, death could wipe out one of the owner’s interest in the land, which suggests the question: what price would a reasonable purchaser pay to acquire joint interest in property? Counsel contends that it is impossible to tell. It is likely that no market exists for such a sale for no rational purchaser would take such a gamble.