Definitions Flashcards
The Appraisal Standards Board may remove a definition from USPAP. What was the reason the ASB removed the term “misleading” from a prior edition of USPAP?
The USPAP definition was not significantly different than the definition found in traditional dictionaries.
Why does USPAP define only certain terms?
to address terms that differ in meaning from there common usage
An appraiser is performing a valuation assignment for a federal financial institution. What definition of “market value” should an appraiser use in this assignment?
the definition required by FIRREA
A property owner has asked an appraiser to work on a tax appeal assignment, but on the condition the tax value can be lowered. What must an appraiser condsider in this situation?
It apprears the client wants the appraiser to act as an advocate.
A preference that precludes an appraiser’s impartiality in an assignment is best defined as
bias.
The definition of advocacy is
not defined in the DEFINITIONS section of USPAP
An appraiser w/ a financial interest in a property must not appraise the property if possessing that interest compromises the appraiser’s
impartiality.
An assignment involves a proposed renovation. What term best applies to the assignment condition if the appraiser’s conclusion is based on a current value as if the renovation is already completed?
hypothetical condition
An appraisal is based on a “what if” scenario. What term does USPAP use to identify an assignment condition that is contrary to what exists?
hypothetical condition
Which term best applies to conditions that are generally supposed in most appraisal assignments, such as the subject property having a clear title?
assumption
An appraiser must br careful not to mislead when using what term alongside “price”?
Estimate
What USPAP term is identified as opinion and never as fact?
value
The monetary relationship between properties and those who buy, sell, or use those properties, best defines what term?
Value
When an appraiser develops the replacement construction cost of improvements for a property, what is the appraiser essentially providing?
an estimated dollar amount to replace the improvements
Confidential info applies to info
Classified as confidential by applicable law or regulation.
or identified by the client as confidential when providing it to an appraiser and that is not available from any other source
A valuation service that is provided by an appraiser as a consequence of an agreement w/ a client defines what USPAP term?
assignment
Module 3: Assignment-Related Definitions
What USPAP term best identifies an appraiser’s opinions or conclusions, not limited to value, that were developed while performing an appraisal assignment or appraisal review assignment?
assignment results
Physical characteristics are not assignment results.
Module 3: Assignment-Related Definitions
Who determines the intended use of an appraisal involving litigation of a federal highway easement?
the appraiser
Module 3: Intended Use and Intended User
Intended users in an Appraisal Report
must be identified by name or type.
Based on the USPAP definition of “client”, which of the following is true?
All of these answers are correct
* The client is the party who engages an appraiser in a specific assignment.
* The client may engage and comm w/ the appraiser directly or through an agent.
* The client may be an individual, group, or entity.
A property owner engages an appraiser to assist in establishing an asking price of his land. The property owner in this assignment
is the client and an intended user.
What type of personalized evidence indicates authentication of the work performed by an appraiser?
a signature
Module 3: Reports and Workfiles.
What type of valuation services requires a workfile under USPAP?
appraisal and appraisal review assignments
Module 3: Reports and Workfiles.
Why doesn’t the USPAP definition for “signature” identify the specifics of what kind of mark or image qualifies for appropriate use?
Because tech is constantly changing
In addition to a paper doc, a report’s written comm may include
All of these answers.
* faxes.
* e-mail messages.
* text messages.
What do accountants, real estate agents, and automobile salespersons have in common w/ real property appraisers?
All may provide valuation services.
The type and extent of research and analyses that an appraiser undertakes in an assignment is best identified as
scope of work.
A wide-ranging world of value-related services best describes
valuation service.
An accountant determines the book value on an asset; a broker establishes a listing price for a property; an appraiser provides an opinion of value. These are all examples of
Valuation service.
An appraisal review assignment
may be all or part of a report, workfile, or a combo of these.
the act or process of developing an opinion of value of or pertaining to appraising and related functions such as appraisal practice or appraisal services.
Appraisal
the act or process of developing an opinion about the quality of another appraiser’s work, that was performed as part of an appraisal or appraisal review assignment
appraisal review
Assumptions, extraordinary assumptions, hypothetical conditions, laws and regulations, jurisdictional exceptions, and other conditions that affect the scope of work.
Assignment conditions
an entity pursuing an economic activity.
Business enterprise
the interests, benefits, and rights inherent in the ownership of a business enterprise or a part thereof in any form.
(including, but not necessarily limited to, capital stock, partnership interests, cooperatives, sole proprietorships, options, and warrants)
Business equity
the actual or estimated amount required to create, reproduce, replace, or obtain a property.
Cost
Worthy of belief
Credible
Credible assignment results require support, by relevant evidence and logic, to the degree necessary for the intended use.
an opinion, based on supporting market data, of the length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal.
Exposure time
an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions.
Extraordinary assumption
nonphysical assets, including but not limited to franchises, trademarks, patents, copyrights, goodwill, equities, securities, and contracts as distinguished from physical assets such as facilities and equipment.
Intangible Property (Intangible Assets)
the use(s) of an appraiser’s reported appraisal or appraisal review assignment results, as 125 identified by the appraiser based on communication with the client at the time of the assignment.
Intended use
an assignment condition established by applicable law or regulation, which precludes an appraiser from complying with a part of USPAP.
Jurisdictional exception
a type of value, stated as an opinion, that presumes the transfer of a property (i.e., a right of ownership or a bundle of such rights), as of a certain date, under specific conditions set forth in the value definition that is identified by the appraiser as applicable in an appraisal.
Market value
the process of valuing a universe of properties as of a given date using standard methodology, employing common data, and allowing for statistical testing.
Mass appraisal
a mathematical expression of how supply and demand factors interact in a market.
Mass Appraisal Model
any tangible or intangible article that is subject to ownership and not classified as real property, including identifiable tangible objects that are considered by the general public as being “personal,” such as furnishings, artwork, antiques, gems and jewelry, collectibles, machinery and equipment; and intangible property that is created and stored electronically such as plans for installation art, choreography, emails, or designs for digital tokens.
Personal property
the amount asked, offered, or paid for a property.
Price
Once stated, price is a fact, whether it is publicly disclosed or retained in private. Because of the financial capabilities, motivations, or special interests of a given buyer or seller, the price paid for a property may or may not have any relation to the value that might be ascribed to that property by others.
any communication, written or oral, of an appraisal or appraisal review that is transmitted to the client or a party authorized by the client upon completion of an assignment.
Report
documentation necessary to support an appraiser’s analyses, opinions, and conclusions.
Workfile
