Mckissock basic appraisal principles latest update graded A

Mckissock basic appraisal principles latest update graded A grant deed deed containing, or having implied by law, some but not all of the usual covenants of title Appraiser One who is expected to perform valuation services competently and in a manner that is independent, impartial, and objective. report 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. narrative report A written communication of the results of a valuation or review assignment presented to the client in narrative style rather than on a form or orally. The AQB charged with establishing the qualifications that all the states must meet in licensing, certification and re-certification of appraisers. january 8th, 2008 Major changes to the Criteria went into effect May 1, 2018 Additional revisions were made effective four components of the Real Property Appraiser Qualification Criteria qualifying ed, education, examinations, continuing ed The Appraisal Foundation not-for-profit organization, established exclusively for educational and scientific purposes. After The Appraisal Foundation was formed, the Uniform Standards of Professional Appraisal Practice was formally adopted by the Appraisal Standards Board (ASB) in January 1989. The Appraisal Foundation has three principal boards: Board of Trustees (BOT) Appraisal Standards Board (ASB) Appraiser Qualifications Board (AQB) The BOT acts as an executive board for the Foundation. The ASB responsible for creating standards for ethics and performance of appraisers. Uniform Standards of Professional Appraisal Practice (USPAP) was developed by the Ad Hoc Committee in 1986 and 1987 and was copyrighted in 1987 by The Appraisal Foundation. At its first meeting in 1989, the Appraisal Standards Board (ASB) adopted USPAP as the governing document. USPAP may be amended, interpreted, supplemented, or retired only by the ASB. Congress recognized USPAP as the generally recognized standards of practice in the appraisal profession in Title XI of the Financial Institutions Reform the Appraisal Subcommittee (ASC) is a federal entity with oversight authority over the state licensing and certification agencies AMCs appraisal management companies The Board of Trustees omposed of 21 individuals responsible for funding The Appraisal Foundation and appointing the members to The Appraisal Foundation's other boards - the Appraisal Standards Board and the Appraiser Qualifications Board. TAFAC Appraisal Foundation Advisory Council iac Industry Advisory Council Appraisal Standards Board exercises all authority and power over the subject, style, content, and substance of USPAP Appraisal Practices Board (APB) its purpose was to create guidance to assist appraisers in issues relating to recognized valuation methods and techniques. Even though the APB no longer exists The Appraisal Foundation plans to continue to issue these Valuation Advisories as it deems necessary. Appraisal Subcommittee was created under Section 1103 of Title XI of FIRREA HUD Department of Housing and Urban Development, only act on complaint with fair lending The Savings and Loan Crisis happened in the early 60's the appraisal foundation was established in 1987 The _________ monitors and reviews the practices, procedures, activities and organizational structure of The Appraisal Foundation. ASC the professional society that specializes in appraising personal property American Society of appraisers ECOA applies to all the following types of loans except Vacant land The ________ maintains a national registry of licensed and certified appraisors ASC ethics relating to what is good or bad: having to do with moral duty and obligation moral relating to the principle of right and wrong bias A particular preference or point of view that is personal, rather than scientific. Appraisal An estimate of the current value of the property. assignment valuation service that is provided by an appraiser as a consequence of an agreement with a client real estate indentified parcel or tract of land, including improvements land solid surface on earth as distinguished from water, one of four agents of production in economic theory Transferable Development Rights dev. right that cannot be used by landowner, or that landowner chooses not to use but can be conveyed to landowners in another location or leased then back to the landowner fixture An article that was once personal property but has since been installed or attached to the land or building in a rather permanent manner so that it is regarded in law as part of the real estate." personal property All property not classified as real property trade fixtures Personal property used in a business and can be removed by the lessee when the lease terminates. real propert interest in real estate (what we appraise) public restrictions taxation,eminent domain,police power,escheat eminent domain Power of a government to take private property for public use. police power protect public interest (zoning, building codes, subdivision regs., electrical,plumbing,energy codes) escheat the right of government that gives the state titular ownership of a property when its owner dies without a will or any ascertainable heirs private restrictions mortgages,mechanics liens,deedrestrictions,conditions covenants and restrictions mortgage A pledge of a described property interest as collateral or security for the repayment of a loan under certain terms and conditions." mortgage note A document or a clause in a document in which the borrower accepts responsibility for the repayment of a debt." mechanics lien A legal claim placed on real estate by someone who is owed money for labor, services or supplies contributed to the property for the purpose of improving it Deed Restrictions Clauses in a deed limiting the future uses of the property. conditions, covenants and restrictions (CC&Rs) The standards that define how a property may be used and the protections the developer makes for the benefit of all owners in a subdivision. legal description description of land that identifies the real estate according to a system established or approved by law lot and block system A system for the legal description of land that refers to parcels' lot and block numbers, which appear on recorded maps and plats of subdivided land; may also be used for assessment maps. metes and bounds a system for the legal description of land that refers to the parcels which are formed by the point of beginning and allintermediate point (bounds) and courses or angular direction of each point(metes) 1 full circle- 1 degree- 1 foot- 1 degree- 360 degrees 60 minutes 60 seconds 3600 seconds 1 mile 8 furlongs 1 furlong 660 Feet, or 10 Chains 1 chain 66 feet or 4 rods 1 rod 16.5 feet or 25 links 1 link 7.92 inches or .67 feet 1 acre 43,560 rectangular survey system divides land into townships and ranges approximately six miles square, each normally containing 36 one-square-mile sections of 640 acres, except when adjusted for the curvature of the earth." 1 township 36 square miles 1 section 1 square mile 1 square mile 640 acres 1/4 section 160 acres quarter-quarter section 40 acres estate right or interest in property fee simple estate (inheritable, transferable, perpetual) Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat. partial interests divided or undivided rights in real estate that represents less than a whole life interests Rights of use, occupancy, and control, limited to the lifetime of a designated party, sometimes referred to as the life tenant." leased fee interests The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversionary right when the lease expires. leasehold interests The right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease. easement the right to use land for a specific and limited purpose Easement in Gross An easement that benefits a legal person or entity easement appurtenant An easement that is attached to, benefits, and passes with the transfer of the dominant estate; affirmative easement the right to do something on servient land negative easement an easement preventing a PROPERTY OWNER FROM CERTAIN OTHERWISE PEMITTED USE OF HIS OR HER LAND conservation easement A negative easement that limits potential development or other property uses in order to preserve open space, natural resources, wildlife, and similar land uses. drainage easement The right to drain surface water from one owner's land over the land of one or more adjacent owners." historic preservation easement - Includes various kinds of controls on historically designated properties; which are imposed by cities, towns or villages facade easement Traditionally considered a type of preservation easement that protected only the facade of a building, not the entire structure. license for real property a personal unassignable and typically revocable priviledge encroachment trespassing on the domain of another tenancy in serveralty estate in propert held by one owner tenancy the holding of propert by any form of title concurrent ownership tenancy in common, joint tenancy, tenancy by the entirety Tenancy in common An estate held by two or more persons, each of whom has an undivided interest." joint tenancy joint ownership by two or more persons with the right of survivorship tenancy by the entirety estate held by husband and wife in which neither has a disposable interest in the property during the lifetime of the other except through joint action land trusts egal vehicle for partial ownership interests in real estate in which independently owned properties are conveyed to a trustee partnership A business in which two or more persons combine their assets and skills general partnership partnership in which partners share equally in both responsibility and liability limited partnership partnership in which only one partner is required to be a general partner corporation an organization that acts as a single legal entity in performing certain activities, usually business for profit syndication privateor public partnership that pools funds for the acquisition and development of real estate projects or other business ventures real estate investment trust A corporation or trust that combines the capital of many investors to acquire or provide financing for all forms of real property condominium An individually owned housing unit in a building with several such units condo ownership a form of fee ownership of separate units or portions of multi-unit buildings that provides for formal filing and recording of a divided interest in real property. cooperative ownership form of property ownership in which each unit owner holds stock in a cooperative apartment building or housing corporation. planned unit development A type of building development designed as a grouping of complementary land uses timesharing Limited ownership interests in, or the rights of use and occupancy of, residential apartments or hotel rooms. deed written legal instrument that conveys an estate or interest in real estate property when it is executed and delivered quitclaim deed any interest the grantor possesses in the property described in the deed is conveyed to the grantee without warranty of title bargain and sale deed A deed that conveys real estate from a seller to a buyer but does not guarantee clear title tax deed conveys title to property purchased at a tax sale warranty deed A deed that conveys to the grantee title to the property free and clear of all encumbrances, except those specifically set forth in the document deed of trust A legal instrument similar to a mortgage document, except that three parties are involved in securing the debt: the borrower, a lender, and a trustee reconveyance passing of the real property back to the original owner promise firm agreement to perform an act refrain from acting or make a payment or delivery competent having the ability to do what is needed consideration something of value exchanged for something else of value release give up a right as releasing one assignment act of transferring an interest in property or some right novation agreement of parties to a contract to substitute a new contract for the old one standards rule 1-5(a) of USPAP analyze all current agreements of sale, options, or listings of the subject property market a set of arrangements in which buyers and sellers are brought together through the price mechanism market gathering of people for the buying and selling of things real property market buyers and sellers of particular real property and the transactions that occur among them active market characterized by numerous transactions buyers market buyers have the advanatage; prices low due to oversupply sellers market few properties available driving prices up for numerous buyers depressed market drop in demand is accompanied by a relative oversupply and decline in prices `imperfect market market in which product differentiation exists, there is a lack of important product or market information market neighborhood group of complementary land uses, congrugous grouping of inhabitants district neighborhood characterized by homo land use market area geographic region from which a majority of demand comes and in which the majority of competition is located amenity benefit of real estate that enhances attractiveness of the user real estate money demand Currency plus demand and time deposits plus the liabilities of nonbank financial intermediaries monetary policy efforts by a central bank such as the FED in the US to influence economic activity by regulating availability of money and rate of interest money market interaction of buyers and sellers who trade short term money instruments capital market interaction of buyers and sellers trading long- or intermediate-term money instruments secondary money market created by govt. and private agencies for the purchase and sale of existing mortgages making mortgages more liqud contract on deed contract in which a purchaser of real estate agrees to pay a small portion of the purchase price when the contract is signed and additional sums conventional loan mortgage that is neither insured or guaranteed by an agency of the federal govt although it may be privately insured guaranteed mortgage a party other than the borrower assures payment in the event of default insured mortgage a party other than the borrower assures payment on default by the mortgagor in return for the payment of a premium first mortgage has priority over all other mortgage liens on a property junior lien lien placed on property after a previous lien has been made and recorded amoritization process of retiring a debt or recovering a capital investment typically through scheduled systematic repayment of the principal fixed rate mortgage A mortgage in which the interest rate does not change during the entire term of the loan. balloon mortgage one that is not fully amortized at maturity and thus requires a lump sum or balloon payment of the outstanding balance graduated-payment mortgage (GPM) debt secured by real property in which mortgage payments are usually projected to match increases in the borrower's income adjustable rate mortgages debt secured by real property with an interest rate that may move up or down reverse mortgage type of mortgage whereby age-qualified homeowners systematically borrow against the equity in their homes, receiving regular (usually monthly) payments from the lender discount points percentage of the loan amount that a lender charges a borrower for making a loan utility ability of a product to satisfy a human want need or desire; the ability of a property or building to be useful and to perform the function for which it is intended according to current market taste and standards scarcity present or anticipated undersupply of an item relative to the demand for it effective purchasing power ability of an individual or group to participate in a market external market forces planning,zoning,building codes, envt restrictions, taxes, utilities, transportation, education, cultural, parks and rec, police, fire protection, public safety National Oceanic and Atmospheric Administration charged with monitoring coastal habitats, such as estuaries and reefs. It also monitors development, water and sediment contamination, water diversion for industrial, agricultural, sedimentation, and dredging and filling activities. US Army Corps of Engineers mission is planning, designing, building and operating water resources and other civil works projects including: Navigation, Flood control, Environmental protection, Disaster response, Ecosystem restoration, Wetlands and waterways , regulation & permitting environmental protection agency Developing and enforcing regulations Offering financial assistance Performing environmental research Sponsoring voluntary programs and partnerships Furthering environmental education Publishing information economic forces national economy. consumer price index, IR, etc arms length transaction transaction between unrelated parties who are each acting in their own best interest exposure time the time a property is on the market value in exchange value that reflects the amount that can be obtained for an asset if exchanged between parties value in use value of property assuming a specific use which may or may not be the highest and best use at the appraisal time investment value value of a property interest to a particular investor or class of investors based on the investor's specific requirements insurable value value for insurance purposes assessed value The value of an asset determined by tax authorities for the purpose of calculating taxes intangible value value cannot be imputed to any part of the physical property market value of the going concern value of an established and operating business including the real property etc public interest value Monetary worth attributed to features that have no measurable worth in the market but may benefit the public or a specific segment of the public book value capital amount at which property is shown on the account books by a corporation or individual liquidation value most probable price that a specified interest in real property should bring salvage value price expected for a whole property anticipation perception that value is created by the expectation of benefits to be derived in the future progression lower priced property will be worth more in a higher priced neighborhood than it would in a neighborhood of comp properties regression the concept that a higher priced property will be worth less in a lower priced neighborhood than it would in a neighborhood of comp properties agents of labor land labor capital and entrepreneurialship surplus productivity net income that remains after the cost of production have been paid market analysis study of supply and demand in a specific area for a specific type of property real property market buyers and sellers of particular real estate and the transactions that occur among them market area geographic regoin which a majority of demand and competition comes from neighborhood analysis objective analysis of observable and or quantifiable data indicating discernable patterns of growth making it higher or lower value macroeconomics the study of economy-wide phenomena, including inflation, unemployment, and economic growth submarket division of total market that reflects the preferences of a particular set of buyers and sellers market segmentation submarkets within a larger market are identified and analyzed disaggregation differentiation of a subject property from other properties on the basis of subclassifications with differing product characteristics market study analysis of the general market conditions of supply demand and pricing for a specific property type in an area absorption trends rate at which vacant space is expected to be sold or leased absorption period actual or expected period required from the time a property, group of properties, or commodity is initially offered for lease, purchase, or use Marketability Analysis a process that investigates how a particular piece of property will be absorbed, sold, or leased under current or anticipated market conditions feasibility analysis study of a cost benefit relationship of an economic endeavor total= part/percent