Which term describes the method of distributing appraisal costs among several parties?

The method of distributing appraisal costs among several parties is referred to as cost allocation. This process involves the systematic approach of identifying, assigning, and distributing costs across different entities or projects based on specific criteria.

In real estate and appraisal contexts, cost allocation is crucial as it helps ensure fairness and transparency in how costs are handled, particularly when multiple stakeholders are involved. It can be necessary in situations where assets or properties are co-owned or when appraisal costs need to be shared due to shared benefits derived from a property assessment.

On the other hand, shared equity pertains to an arrangement where multiple parties invest in a property and share its value or financial benefits but does not specifically address how appraisal costs are divided. Common area maintenance usually refers to costs associated with shared spaces in multi-tenant properties and does not focus on the methodology for appraising costs. A joint venture is a business arrangement where two or more parties come together for a specific project, which may involve pooling resources, but it does not specifically address the distribution of appraisal costs either. Thus, the most accurate term for the distribution of appraisal costs is indeed cost allocation.