Hawaii Administrative Rules › Title 16 - DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS › Chapter 114 - REAL ESTATE APPRAISERS › Subchapter 1 - GENERAL PROVISIONS › Section 16-114-2 - Definitions

Current through June, 2024
As used in chapter 466K, HRS, and in this chapter:
"Appraisal" or "appraisal report" means a written or oral
				  statement independently and impartially prepared, setting forth an opinion as
				  to the market value of an adequately described property as of a specific
				  date(s), supported by the presentation and analysis of relevant market
				  information.
"Appraisal Foundation" means the Appraisal Foundation
				  established on November 30, 1987, as a not-for-profit corporation under the
				  laws of Illinois.
"Appraisal Standards Board" means the board appointed by the
				  Appraisal Foundation to establish rules for developing and reporting of an
				  appraisal.
"Appraiser Qualifications Board" means the board appointed
				  by the Appraisal Foundation to establish criteria for appraiser licensing and
				  certification.
"Appraisal Subcommittee" means the Appraisal Subcommittee of
				  the Federal Financial Institutions Examination Council (FFIEC) consisting of
				  representatives from the federal financial institutions regulatory agencies and
				  from the Department of Housing and Urban Development.
"Appraiser" or "real estate appraiser" means a state
				  licensed or state certified appraiser who for a fee or other valuable
				  consideration prepares appraisal reports.
"Appraiser assistant" means a person who is not licensed or
				  certified as an appraiser but who assists in the preparation of an appraisal
				  under the direct supervision of a certified appraiser.
"Certificate" means that document issued by the director
				  indicating that the person named thereon has satisfied the requirements for
				  certification as a state certified appraiser.
"Certificate holder" means the person in whose name the
				  director grants a certificate.
"Complex one-to-four family residential property appraisal"
				  means one in which the property to be appraised, market conditions, or form of
				  ownership is atypical and the atypical factor has a significant value
				  contribution. For example, atypical factors may include but are not limited
				  to:
(1) Architectural style;
(2) Age of improvements;
(3) Size of improvements;
(4) Size of lot;
(5) Neighborhood land use;
(6) Potential environmental hazard liability;
(7) Property interests;
(8) Limited readily available comparable sales data;
				  or
(9) Other unusual factors.
"Direct supervision" means to actively and personally review
				  the appraisal report of an appraiser assistant, and to approve and to sign the
				  report as being independently and impartially prepared and in compliance with
				  the uniform standards of professional appraisal practice (USPAP).
"Director" means the director of commerce and consumer
				  affairs.
"Federal Financial Institutions Examination Council" means
				  the council created under the Federal Financial Institutions Examination
				  Council Act of 1978 (
				  12 U.S.C.
				  §3301 et seq.) consisting of
				  representatives from the Office of the Comptroller of the Currency, the Board
				  of Governors of the Federal Reserve System, the Federal Deposit Insurance
				  Corporation, the Office of Thrift Supervision and the National Credit Union
				  Administration Board or any respective successors.
"Federally related transaction" means any real
				  estate-related financial transaction entered into on or after October 1, 1991,
				  that:
(1) Any federal financial institutions regulatory agency,
				  Resolution Trust Corporation, or any regulated institution engages in or
				  contracts for; and
(2) Requires the services of an appraiser.
"Forfeit" or "forfeiture" means the immediate and automatic
				  termination of a license or certificate without any prior consultation with the
				  licensee or certificate holder caused by the licensee or certificate holder's
				  failure to comply with the requirements for maintaining or renewing the license
				  or certificate.
"Hawaii real estate appraiser advisory committee" or
				  "committee" means the body established pursuant to section
				  466K-3,
				  HRS.
"License" means the document issued by the director
				  indicating that the person named thereon has satisfied all requirements for
				  licensure as a state licensed appraiser.
"Licensee" means the person in whose name the director
				  grants a license.
"Market value" means the most probable price which a
				  property should bring in a competitive and open market under all conditions
				  requisite to a fair sale, the buyer and seller, each acting prudently, and
				  knowledgeably, and assuming the price is not affected by undue stimulus.
				  Implicit in this definition is the consummation of a sale as of a specified
				  date and the passing of title from seller to buyer under conditions
				  whereby:
(1) Buyer and seller are typically motivated;
(2) Both parties are well informed or well advised, and
				  acting in what each considers in the party's own best interest;
(3) A reasonable time is allowed for exposure in the open
				  market;
(4) Payment is made in terms of cash in United States dollars
				  or in terms of financial arrangements comparable thereto; and
(5) The price represents the normal consideration for the
				  property sold unaffected by special or creative financing or sales concessions
				  granted by any person associated with the sale.
In applying this definition of market value, adjustments to
				  the comparable properties must be made for special or creative financing or
				  sales concessions. No adjustments are necessary for those costs that are
				  normally paid by sellers as a result of tradition or law in a market area;
				  these costs are readily identifiable since the seller pays these costs in
				  virtually all sales transactions. Special or creative financing adjustments can
				  be made to the comparable properties by comparisons to financing terms offered
				  by a third party financial institution that is not already involved in the
				  property or transaction. Any adjustment should not be calculated on a
				  mechanical dollar-for-dollar cost of the financing or concession, but the
				  dollar amount of any adjustment should approximate the market's reaction to the
				  financing or concessions based on the appraiser's judgment.
"Real estate" or "real property" means an identified parcel
				  or tract of land, with improvements, and includes easements, rights of way,
				  undivided or future interests, or similar rights in a tract of land, but does
				  not include mineral rights, timber rights, growing crops, water rights, or
				  similar interests severable from the land when the transaction does not involve
				  the associated parcel or tract of land.
"Real estate-related financial transaction" means any
				  transaction involving:
(1) The sale, lease, purchase, investment in, or exchange of
				  real property, including interests in property, or the financing
				  thereof;
(2) The refinancing of real property or interests in real
				  property; or
(3) The use of real property or interests in real property as
				  security for a loan or investment, including mortgage-backed securities.
"Regulated institution" or "federal financial institution"
				  means any institution regulated by the Board of Governors of the Federal
				  Reserve System, the Federal Deposit Insurance Corporation, the Office of the
				  Comptroller of the Currency, the Office of Thrift Supervision, or the National
				  Credit Union Administration or any respective successors.
"Reinstate" or "reinstatement" means the granting of
				  permission to perform appraiser work by the director to a person whose license
				  or certificate has been previously suspended.
"Residential property" means any parcel of real estate,
				  improved or unimproved, that is utilized for one-to-four family purposes and
				  where the highest and best use is for one-to-four family purposes. A
				  residential unit in a condominium, townhouse, or cooperative complex is
				  considered to be residential real estate. Residential property does not include
				  subdivisions wherein a development analysis or appraisal is necessary or
				  utilized.
"Restore" or "restoration" means the granting of permission
				  to perform appraiser work by the director to a person whose license or
				  certificate has been previously forfeited.
"State certified appraiser" or "certified appraiser" means
				  any individual who, having met the requirements of chapter 466K, HRS, and this
				  chapter, has been certified as a state certified general appraiser or a state
				  certified residential appraiser.
"State certified general appraiser" or "certified general
				  appraiser" means any individual who, having met all requirements of chapter
				  466K, HRS, and this chapter, is certified to perform appraisal assignments for
				  all real estate property types.
"State certified residential appraiser" or "certified
				  residential appraiser" means any individual who, having met all requirements of
				  chapter 466K, HRS, and this chapter, is certified to perform appraisals
				  pursuant to section
				  16-114-71.
"State licensed appraiser" or "licensed appraiser" means any
				  individual who, having met all requirements of chapter 466K, HRS, and this
				  chapter, is licensed to perform appraisals pursuant to section
				  16-114-70.
"Transaction value" means:
(1) For loans or other extensions of credit, the amount of
				  the loan or extension of credit;
(2) For sales, leases, purchases, and investments in or
				  exchanges of real property, the market value of the real property involved;
				  or
(3) For the purchase or sale of loans or interests in real
				  property pooled for sale, the amount of the loan or the market value of the
				  real property calculated with respect to each loan or real property interest in
				  the pool.
The transaction value for a series of related transactions
				  will be calculated as if only one transaction is involved if it appears that an
				  entity is attempting to evade the requirements to have the appraisal performed
				  by a state licensed or state certified appraiser. Master appraisals performed
				  in support of Housing and Urban Development, Federal Housing Administration, or
				  Veterans Administration loan transactions will not be considered as one
				  transaction.
"Uniform standards of professional appraisal practice" or
				  "USPAP" means the uniform appraisal standards including ethics and competency
				  provisions established by the Appraisal Standards Board as adopted and as it
				  may subsequently be amended by the Appraisal Foundation.
The amended
				  version of this section by
				  Hawaii
				  Administrative Rules Listing of Filings, 2016-01, November, eff.
				  11/27/2016 is not
				  yet available.