1. (a)

   1. (1) The market value of real property is determined by obtaining an estimate of current market value from a knowledgeable source.

   2. (2) Knowledgeable sources include:

      1. (A) Real estate brokers;
      2. (B) Local office of the United States Farm Service Agency (for rural land);
      3. (C) Banks, mortgage companies, and similar lending institutions;
      4. (D) County agricultural extension service (for rural land); and
      5. (E)

2. (i) Tax assessor of the county in which the property is located.

   1. (ii) If this source is used, then the assessed value must be multiplied by the county multiplier five (5) to arrive at the market value.

3. (b) The estimate should be written, signed and dated, and have enough information so the source can be identified.

   1. (c)
   2. (1) The client is primarily responsible for obtaining the estimate.

   3. (2) However, if requested, assistance to obtain a free estimate will be provided.

      1. (d)
   4. (1) Only the net equity in the property is considered.
   5. (2) Net equity is determined by subtracting the value of any liens, mortgages, or other encumbrances from the market value.
   6. (3) If the market value of the property exceeds the resource limit of three thousand dollars ($3,000), alone or with other countable resources, then the amount of any encumbrances will be verified.

Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules provided as follows: “07/01/97”