Uspap Definitions & Acronyms

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APPRAISAL

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the act or process of developing an opinion of value

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APPRAISAL PRACTICE

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Valuation services performed by an individual acting as an appraiser , including but not limited to appraisal and appraisal review.

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APPRAISAL REVIEW

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the act or process of developing and communicating an opinion about the quality of another appraiser's work that was performed as part of an appraisal or appraisal review.

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APPRAISER

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one who is expected to perform valuation services competently and in a manner that is independent, impartial, and objective.

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APPRAISER PEERS

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other appraisers who have expertise and competency in a similar type assignment.

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ASSIGNMENT

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1) An agreement between an appraiser and a client to provide a valuation service 2) the valuation service that is provided as a consequence of such an assignment.

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ASSIGNMENT RESULTS

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An appraiser's opinions or conclusions developed specific to an assignment.

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ASSUMPTION

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that which is taken to be true.

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BIAS

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a preference or inclination that precludes an appraiser's impartiality, independence, or objectivity in an assignment.

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BUSINESS ENTERPRISE

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an entity pursuing an economic activity.

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BUSINESS EQUITY

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the interests, benefits, and right 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.

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CLIENT

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the part or parties who engage, by employment or contract, an appraiser in a specific assignment. (Can be individual, group, or entity)

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CONFIDENTIAL INFORMATION

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Information that is either:

1. Identified by the client as confidential when providing it to an appraiser and that is not available from any other source; or

2. classified as confidential or private by applicable law or regulation.

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COST

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The amount required to create, produce, or obtain a property.

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CREDIBLE

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worthy of belief.

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EXPOSURE TIME

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estimated 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.

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EXTRAORDINARY ASSUMPTION

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an assumption, directly related to a specific assignment, as of the effective date of the assignment results, which, if found to be false, could alter the appraiser's opinions or conclusions.

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FEASIBILITY ANALYSIS

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a study of the cost-benefit relationship of an economic endeavor.

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HYPOTHETICAL CONDITION

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a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis.

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INTANGIBLE PROPERTY

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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.

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INTENDED USE

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the use or uses of an appraiser's reported appraisal or appraisal review assignment opinions and conclusions, as identified by the appraiser based on communication with the client at the time of the assignment.

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INTENDED USER

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the client and any other party as identified, by name or type, as users of the appraisal or appraisal review report the the appraiser on the basis of communication with the client at the time of the assignment.

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JURISDICTIONAL EXCEPTION

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an assignment condition established by applicable law or regulation, which precludes an appraiser from complying with a part of USPAP.

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MARKET VALUE

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a type of value, stated as an opinion, that presumes the transfer of property (i.e., a right of ownership or bundle of such rights), as of a certain date, under specific conditions set forth in the definition of the term identified by the appraiser as applicable in an appraisal.

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MASS APPRAISAL

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the process of valuing a universe of properties as of a given date using standard methodology, employing common data, and allowing for statistical testing.

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MASS APPRAISAL MODEL

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a mathematical expression of how supply and demand factors interact in a market.

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PERSONAL PROPERTY

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identifiable tangible objects that are considered by the general public as being "personal" - for example furnishings, artwork, antiques, gems and jewelry, collectibles, machinery and equipment; all tangible property that is not classified as real estate.

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PRICE

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the amount asked offered, or paid for a property.

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REAL ESTATE

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an identified parcel or tract of land, including improvements, if any.

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REAL PROPERTY

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the interests, benefits, and rights inherent in the ownership of real estate.

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REPORT

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any communication, written or oral, of an appraisal or appraisal review that is transmitted to the client upon completion of an assignment.

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SCOPE OF WORK

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the type and extent of research and analyses in a appraisal or appraisal review assignment.

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SIGNATURE

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personalized evidence indicating authentication of the work performed by the appraiser and the acceptance of the responsibility for content, analyses, and the conclusions in the report.

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VALUATION SERVICES

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services pertaining to aspects of property value.

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VALUE

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the monetary relationship between properties and those who buy, sell, or use those properties.

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WORKFILE

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documentation necessary to support an appraiser's analyses, opinions, and conclusions.

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FIRREA (TITLE XI)

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Federal Financial Institution Reform, Recover and Enforcement Act

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Ad HOC Committee

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8 Organizations that developed USPAP

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AQB

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Appraiser Qualification Board

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ASB

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Appraisal Standards Board

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BOT

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Board of Trustees

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APB

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Appraisal Practices Board

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TAF

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The Appraisal Foundation

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TAFAC

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The Appraisal Foundation Advisory Counsel

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IAC

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Industry of Advisory Counsil

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FFIEC

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Federal Financial Institutions Examination Council

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ASC

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Appraisal Subcommittee

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IVC

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International Valuation Council

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VGF

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Valuers Global Forum

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STEP 1 in Appraisal Process

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Definition of Problem

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STEP 2 in Appraisal Process

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Scope of Work

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STEP 3 in Appraisal Process

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Data Collection & Analysis

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STEP 4 in Appraisal Process

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Application of the Approaches to Value

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STEP 5 in Appraisal Process

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Reconciliation of Value Indications and Final Opinion of Value

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STEP 6 in Appraisal Process

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Report of Defined Value Opinions