PROPERTY RIGHTS APPRAISED. The subject property is appraised in its fee simple interest.
PROPERTY RIGHTS APPRAISED. The property rights appraised for the subject property "as is" as of the date of appraisal, is the fee simple estate, defined in the Appraisal Institute's Dictionary of Real Estate Appraisal, 3rd Edition as: "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." With regard to our prospective value estimates "as stabilized," the property will be subject to lease agreements. Thus, the property rights appraised for the prospective value estimates herein are those of the leased fee estate, defined in the Appraisal Institute's Dictionary of Real Estate Appraisal, 3rd Edition as: "An ownership interest held by a landlord with the right of use and occupancy conveyed by lease to others. The rights of the lessor (the leased fee owner) and the leased fee are specified by contract terms contained within the lease."
PROPERTY RIGHTS APPRAISED. The Appraisal Report is required to identify the real estate and the specific realty interest being appraised, i.e., fee simple, leased fee, leasehold. Fee Simple – Typically owner occupied – no leases. A capitalized value of market rent will typically reflect fee simple value in the income capitalization approach. Leased Fee – Xxxxxx’s/owner’s interest in leased property. Whenever a property is encumbered by any type of lease or leases, the appraisal must indicate the leased fee value of the property. Leasehold – Tenant’s interest subject to the terms and conditions of a lease. This value may be positive or negative and is determined by comparing the contract rental rate to the market rate. Whenever a Property is encumbered with a lease or leases, both the Leased Fee and Leasehold Values must be identified, together with an explanation of and adjustments for either a negative or positive Leasehold Value. Assumptions & Limiting Conditions Contractor will identify and explain all Assumptions and limiting conditions in the Appraisal Report. Some properties, especially proposed developments or some requests for a particular type of valuation, may require an expansion of the assumptions. However, the assumptions and limiting conditions in the Appraisal Report must not be so broad that they invalidate or render the estimated value as meaningless. However, the Appraisal Report must mention any extraordinary assumptions or hypothetical conditions. The appraiser is required to inform the U.
PROPERTY RIGHTS APPRAISED. 7 EFFECTIVE DATE OF VALUATION .......................................................................................................................................... 7 DATE OF INSPECTION ................................................................................................................................................................ 7 DATE OF APPRAISAL REPORT .................................................................................................................................................. 8 USPAP COMPETENCY PROVISION ........................................................................................................................................... 8
PROPERTY RIGHTS APPRAISED. We have formed the opinions of value of the land of the subject property in fee simple ownership. Fee simple ownership may be defined as follows: “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.” Source: The Dictionary of Real Estate Appraisal, Fourth Edition, (Chicago: Appraisal Institute, 2002, Page 113. EFFECTIVE DATE OF VALUATION The effective date of valuation is November 12, 2007.
