Property Valuation
An appraiser in northeastern Pennsylvania computes a cost approach for an anthracite coal region property. The appraiser should note that coal deed severances may:
AIncrease the surface value since the coal value transfers to the surface
BReduce the surface estate value since the coal owner may have the right to mine and cause subsidence✓ Correct
CHave no effect on surface value
DOnly affect commercial properties over 10 acres
Explanation
When coal rights are severed in Pennsylvania, the surface estate may carry the burden of the coal owner's mining rights, including potential subsidence. The Kohler Act and related legislation addressed this, but buyers and appraisers should consider the impact of coal deed severances on surface value, particularly in Lackawanna, Luzerne, and Schuylkill counties.
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