Basic Appraisal Principles Terms and definitions

appraiser one who estimates officially the worth or value or quality of things appraisal practice a valuation service performed by an individual acting as an appraiser competency having adequate ability to perform an assignment and produce credible results identification of the problem the first step of valuation process, which includes six elements 1. client and any other intended user 2. intended use 3. type and definition value (a.k.a. purpose) 4. effective date 5. subject of assignment and characteristics 6. assignment conditions ethical practice appraiser's obligation to 1. protect public trust 2. develop work that is meaningful and not misleading 3. when acting as appraiser, must perform ethical and competent assignments public trust ... scope of work a. the type and extent if research and analyses in an assignment b. the second step of the valuation process sufficient diligence an appraiser must 1. correctly employ recognized methods 2. not make a substantial error or omission that effects an appraisal 3. not render appraisal services in a careless manner air rights the right to undisturbed use and control of designated air space above a specific land area appurtenance something added or attached to a property that becomes an inherent part of the property, usually passes with the property when the title is transferred bundle of rights total range of ownership interests in real property. the most complete form of ownership. include: 1. possession 2. transfer 3. lease 4. mortgage 5. improve emblements annual crops such as corn, wheat, and vegetables fixtures article that was once personal property but has been attached to the land or building and has become part of the real estate improvement any permanent structure on real property, or any work on the property which increases its value land a. land and water, and anything that is attached to it whether by nature or man-made. b. each parcel is immobile and unique, finite, and a commodity littoral rights pertain to properties touching a lake or pond (non-flowing water), with emphasis on use of the shore riparian rights pertain to properties touching a river or stream (flowing water), with emphasis on use of the flowing water partial interests divided or undivided rights in real estate that represent less than the whole interest personal property identifiable tangible objects that are considered by the general public as being "personal" real estate a. physical raw land and all things that are a natural part of the land, including appurtenances b. when attached to land, improvements become real estate real property interests, benefits, and rights inherit in the ownership of real estate suprasurface rights rights above land (air rights), including... 1. right to construct buildings in air space 2. right to control/view solar access 3. right to lease or sell these rights subsurface rights rights below land, including 1. right to use and profit of underground property 2. extraction of minerals 3. construction of tunnels, subways , sewers, basements 4. solid mineral rights 5. oil and gas rights surface rights rights include land, water, or anything attached to the land, natural or man-made surface rights - water rights 1. riparian rights 2. littoral rights 3. unrestricted right to use water that adjoins property trade fixtures articles placed in or attached to rented buildings by a tenant to carry out the trade or business of the tenant, always personal property deed restriction provision written into a deed that limits the use of land, usually remains in effect when title passes to next owner easement the right to use another's land for a stated purpose easement appurtenant a. has both dominant and servient estates b. passes with title to dominant estate easement in gross a. benefits a legal person or entity and not a particular tract of land b. has a servient but no dominant estate encroachment trespassing on the domain of another estate in land the degree, nature, or extent of interest that a person has in land fee simple absolute a. most complete form of ownership b. unlimied duration 3. only government can possess fee simple defeasible a. subject to occurrence or non-occurrence of a specific event. b. two types are estates that... 1.. are qualified by special limitation 2.. subject to a condition subsequent leased fee interest a. ownership interest held by a landlord with rights of use and occupancy conveyed by lease to others. b. these rights are specified by contract b/w lessee and lessor freehold estate characteristics... 1. present or future possession 2. indeterminate duration 3. ownership types: 1. fee simple estate 2. life estate leasehold estate characteristics... 1. possessory 2. defined period of time or specified conditions 3. possessory rights revert back to owner license a. agreement granting privilege to use property b. not an estate or interest in land c. not assignable, cant be sold d. personal agreement granted for specific time