Code of Massachusetts Regulations › 264 CMR - BOARD OF REGISTRATION OF REAL ESTATE APPRAISERS › Title 264 CMR 2.00 - General Provisions › Section 2.03 - Definitions

Current through Register 1525, July 5, 2024
The definitions of the following terms shall apply to
				264 CMR
				2.00 through
				12.00. The definitions used
				in 264 CMR 2.03 shall be construed consistent with USPAP. Where inconsistencies
				are found, the USPAP shall control.
Analysis
- a study or real estate or
				real property other than estimating value.
Appraisal Assignment
- an engagement
				for which an appraiser is employed or retained to act, or would be perceived by
				a third party or the public as acting, as a disinterested third party in
				rendering an unbiased analysis, opinion, or conclusion relating to the nature,
				quality, value, or utility of specified interest in, or aspects of, identified
				real estate.
Appraisal or Appraisal of Real Estate
- a written or oral analysis, opinion or conclusion prepared by a real estate
				appraiser relating to the nature, quality, value or utility of specified
				interests in, or aspects of, identified real estate. The act or process of
				estimating value. An appraisal may be classified as a valuation or analysis, or
				both.
Appraisal Foundation
- the Appraisal
				Foundation incorporated as an Illinois nonprofit corporation on November 30,
				1987 and recognized under the Financial Institution Reform, Recovery and
				Enforcement Act of 1989 (FIRREA).
Appraisal Report
- a written or oral
				report of an appraisal.
Appraisal Review
- 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 assignment related
				to the appraiser's data collection, analysis, opinions, conclusions, opinion of
				value, or compliance with the
Uniform Standards of Professional
				Appraisal Practice
(USPAP).
Appraisal Review
does not include:
(a) a general examination for grammatical, typographical or
				similar errors; or
(b) a general examination for completeness including regulatory
				(other than USPAP) and/or client requirements as specified in an agreement
				process that does not communicate an opinion of value.
Appraisal Standards Board (ASB)
- the
				board appointed by the Appraisal Foundation to establish rules of developing
				and reporting appraisal.
Appraisal Subcommittee
- The Appraisal
				Subcommittee of the Federal Financial Institutions Examination Council (FFIEC)
				created on August 9, 1989, pursuant to Title XI of the Financial Institutions
				Reform, Recovery, and Enforcement Act of 1989 (Title XI).
Appraisal Trainee
- a person who holds
				a current license as a trainee issued by the Board pursuant to M.G.L. c. 112,
				§ 178.
Appraiser-in-training
- A State
				Licensed Appraiser or State Certified Residential Appraiser working under the
				direct supervision of an appraiser licensed at a higher level on assignments
				outside the scope of practice of the credential held by the appraiser being
				supervised.
Appraiser Qualifications Board (AQB)
-
				the board appointed by the Appraisal Foundation to establish criteria for
				appraiser licensing and certification.
Atypical Factors
- Characteristics
				that are not typical and that significantly contribute to the value of the real
				estate, including, but not limited to:
(a) architectural style;
(b) age of improvements;
(c) size of improvements;
(d) size of lot;
(e) neighborhood land use;
(f) potential environmental hazard liability;
(g) property interest;
(h) limited readily available comparable sales data;
(i) changing market conditions; or
(j) other unusual factors.
Board
- the Board of Registration of
				Real Estate Appraisers established pursuant to the provisions of M.G.L. c. 13,
				§ 92.
Certificate
- the document issued by
				the Board indicating that the person named thereon has satisfied the
				requirements for certification as a real estate appraiser.
Certificate Holder
- person in whose
				name a real estate appraiser certificate has been issued by the Board.
Classroom Hour
- 50 minutes out of
				each 60 minute segment.
Complex One-to-four Family Residential Property
				Appraisal
- one which the property to be appraised, market
				conditions, or form of ownership is atypical and which atypical
				characteristic(s) have a significant value contribution.
Complex Property
- any parcel of real
				estate where the highest and best use, market conditions, or forms of ownership
				are atypical or where atypical characteristics have a significant affect on
				value.
Continuing Education
- courses that
				are approved by the Board to be used to satisfy the education requirements for
				renewal of a license or certificate.
Course Provider
- a college,
				university, other educational entity, or individual that offers real estate
				appraiser education.
Direct Supervision
- the act of
				personally reviewing the appraisal report of an Appraisal Trainee and/or an
				Appraiser-in-training, and to approve and to sign the report as being
				independently and impartiality prepared and in compliance with the
Uniform Standards of Professional Appraisal Practice
(USPAP).
Distance Education
- a Board approved
				course distinguished by the geographical separation of instructor and learner,
				including, by way of example but not limitation, CD-ROM, on-line learning,
				correspondence courses, and video conferencing.
Elective Education
- a Board approved
				course that may enhance the practice of real estate appraisal, but does not
				focus on the direct application of real estate appraisal practices and
				principles.
Federal Registry
-
See
National Registry of Real Estate Appraisers.
Federally-related Transaction
- any
				real estate-related financial transaction which a federal financial
				institutions regulatory agency engages in, contracts for, or regulates, and
				which requires the services of a real estate appraiser.
Federally-related Transaction
also includes any
				transaction identified as such by a federal financial institutions regulatory
				agency.
Licensee
- person in whose name a
				state-licensed, state certified residential, state certified general or
				appraisal trainee license has been issued by the Board.
Mass Appraisal
- the process of
				valuing a universe of properties as of a given date utilizing standard
				methodology, employing common data, and allowing for statistical
				testing.
National Registry of Real Estate Appraisers
				(National Registry)
- a registry of individuals who are qualified
				and eligible to perform appraisals in connection with Federally-related
				Transactions. This registry is maintained by the Appraisal Subcommittee or its
				successors.
Non-residential Education
- appraisal
				education that focuses on nonresidential property subject matter.
				Non-residential education includes introductory courses in nonresidential
				property principles and practice, nonresidential property analysis,
				capitalization methodology, report form writing, eminent domain proceedings and
				takings, and other aspects of the income capitalization approach to
				value.
Non-residential Property
- any
				improved or unimproved parcel of real estate including, but not limited to the
				following:
(a) properties used for commercial purposes, whether or not the
				primary basis for valuing the property is based on income;
(b) multi-family properties larger than four units;
(c) commercially-zoned property; with highest and best use as
				such;
(d) development properties improved or unimproved, where the
				primary value is derived from sales revenue less all appropriate deductions and
				dollar discounts;
(e) easements;
(f) partial interests, such as leaseholds, leased fees, life
				estates,
etc;
and
(g) other nonresidential properties or interests.
Real Estate
- an identified parcel or
				tract of land, including improvements, if any.
Real Estate-related Financial
				Transaction
- any transaction involving:
(a) the sale, lease, purchase, investment in, or exchange of
				real property, including interests in property, or the financing
				thereof;
(b) the refinancing of real property or interests in real
				property; or
(c) the use of real property or interests in real property as
				security for a loan or investment, including mortgage-backed securities.
Real Property
- one or more defined
				interests, benefits, and rights inherent in the ownership of real
				estate.
Registrant
- person applying for
				temporary registration based on licensure or certification in another
				jurisdiction.
Registration
- licensure or
				certification by the Board.
Residential Education
- appraisal
				education that focuses on residential property subject matter. Residential
				education includes introductory courses in residential property principles and
				practice analysis, report form writing, and aspects of the replacement cost
				approach and the direct sales comparison approach to value.
Residential Property
- any parcel or
				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 property. Residential property does not
				include:
(a) subdivisions wherein a development analysis or appraisal is
				necessary or utilized;
(b) easements; or
(c) partial interests, such as leaseholds, leased fees, life
				estates,
etc.
Review Appraiser
- an appraiser who
				examines the reports of other appraisers in accordance with Standard 3 of the
				USPAP.
State-certified General Real Estate
				Appraiser
- a person who develops and communicates real estate
				appraisals and who holds a current, valid certificate as a State-certified
				General Real Estate Appraiser under the provisions of M.G.L. c. 12, §
				178.
State-certified Residential Real Estate
				Appraiser
- a person who develops and communicates real estate
				appraisals and who holds a current, valid certificate as a State-certified
				Residential Real Estate Appraiser under the provisions of M.G.L. c. 12, §
				178.
State-licensed Real Estate Appraiser
-
				a person who develops and communicates real estate appraisals and who holds a
				current, valid license as a State-licensed Real Estate Sppraiser under the
				provisions of M.G.L. c. 12, § 178.
Subdivision Appraisal
- an appraisal
				of land which can be valued as more than one lot when all appropriate
				deductions for completion costs are considered within an absorption period
				using the methodology of discounting.
Supervising Appraiser
- a
				State-certified General or State-certified Residential Real Estate Appraiser
				who supervises an appraisal trainee and/or an Appraiser-in-training acting in
				accordance with
				264 CMR 6.01:
Scope of Practice.
Only individuals who have been licensed in
				good standing as a State-certified General or State-certified Residential Real
				Estate Appraiser for at least three years in Massachusetts may serve as a
				supervising appraiser.
Temporary State-licensed or State-certified Real
				Estate Appraiser
- a person who has been issued a temporary
				license or certificate pursuant to M.G.L. c. 112, § 183.
Transaction Value
:
(a) For loans or other extensions of credit, transaction value
				means the amount of the loan or extension of credit;
(b) For sales, leases, purchases, and investments in, or
				exchanges of, real property, transaction value means the market value of the
				real property involved; or
(c) For the purchase or sale of loans or interests in real
				property pooled for sale, transaction value means 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 that the appraisal be performed
				by a state-licensed or state-certified appraiser. Mass appraisals performed in
				support of United States Department 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
- the entire uniform appraisal standards document titled
Uniform Standards of Professional Appraisal Practice
(USPAP),
				as defined by 12 C.F.R. §225.191(P).
Use Value
- the value a specific
				property has for a specific use.
USPAP
-
See
Uniform
				Standards of Professional Appraisal Practice.
Valuation
- an estimate or opinion of
				the value of real estate or real property.