§ 17-14-103 - Definitions.
17-14-103. Definitions.
As used in the Arkansas Appraiser Licensing and Certification Act, 17-14-101 et seq., 17-14-201 et seq., and 17-14-301 et seq.:
(1) "Appraisal":
(A) As a noun, means the act or process of estimating value or an estimate of value; and
(B) As an adjective, means of or pertaining to appraising and related functions, i.e., appraisal practice and appraisal services;
(2) "Appraisal Foundation" and "foundation" mean the Appraisal Foundation established on November 30, 1987, as a not-for-profit corporation under the laws of Illinois;
(3) "Appraisal practice" and "appraisal services" mean the work or services performed by appraisers for clients;
(4) "Appraisal Standards Board" means the board created under Article XI, sections 11.01 -- 11.13 inclusive, of the bylaws of the Appraisal Foundation, as amended April 22, 1990;
(5) "Appraisal Subcommittee" means the subcommittee of the federal Financial Institutions Examination Council established under Title XI, the Real Estate Appraisal Reform Amendments of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, section 1102, by amendment to the Federal Financial Institutions Examination Council Act of 1978, 12 U.S.C. 3301 et seq., through the addition of new section 1011, "Establishment of Appraisal Subcommittee";
(6) "Appraiser" or "real estate fee appraiser" means any person who, for a fee or other consideration, develops and communicates a real estate appraisal or otherwise gives an opinion of the value of real estate or any interest in real estate;
(7) "Appraiser Qualifications Board" means the board created under Article XII, sections 12.01 -- 12.08 inclusive, of the bylaws of the Appraisal Foundation, as amended April 22, 1990;
(8) "Board" means the Arkansas Appraiser Licensing and Certification Board established under the Arkansas Appraiser Licensing and Certification Act, 17-14-101 et seq., 17-14-201 et seq., and 17-14-301 et seq.;
(9) "Client" means any person for whom an appraiser performs a service;
(10) "Federal financial institutions regulatory agencies" means 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, and the National Credit Union Administration;
(11) "Federally related transaction" means any real estate-related financial transaction which:
(A) A financial institution, a federal financial institution's regulatory agency, or the Resolution Trust Corporation engages in, contracts for, or regulates; and
(B) In accordance with any federal law, rule, or regulation, as the same may be amended, requires the services of an appraiser;
(12) "Financial institution" means an insured depository institution as defined in the Federal Deposit Insurance Act, 12 U.S.C. 1813 (c) (2), or an insured credit union as defined in section 101 of the Federal Credit Union Act, 12 U.S.C. 1751 et seq.;
(13) "Independent appraisal assignment" means any engagement for which an appraiser is employed or retained to act or to be perceived by third parties or the public as acting as a disinterested third party in rendering an unbiased analysis, opinion, evaluation, or conclusions relating to the nature, quality, value, or utility identified as real estate or real property;
(14) "Market analysis" or "broker's price opinion" means a proposed sale price opinion or recommended listing price given by a licensed real estate broker, sales person, or other to a potential seller, purchaser, or third party;
(15) "Personal property" means identifiable portable and tangible objects which are considered by the general public as being "personal", e.g., furnishings, artwork, antiques, gems and jewelry, collectibles, machinery and equipment; all property that is not classified as real estate;
(16) "Real estate" means an identified parcel or tract of land, including improvements, if any;
(17) (A) "Real estate appraisal" means an unbiased estimate of the nature, quality, value, or utility of an interest in, or aspect of, identified real estate and related personalty.
(B) (i) A real estate appraisal may be classified by subject matter into either a valuation or an evaluation.
(ii) Valuation is the process of estimating the market value, investment value, insurable value, or other properly defined value of an identified interest or interests in a specific parcel or parcels of real estate as of a given date.
(iii) Evaluation or analysis is the study of the nature, quality, or utility of a parcel of real estate, or interests in or aspects of real property, in which a value estimate is not necessarily required, i.e., a study of real estate or real property other than estimating value;
(18) "Real estate-related financial transaction" means 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; and
(C) The use of real property or interests in property as security for a loan or investment, including mortgage-backed securities;
(19) "Real property" means interest, benefits, and rights inherent in the ownership of real estate;
(20) "Report" means:
(A) Any communication, written or oral, of an appraisal, review, or analysis;
(B) The document that is transmitted to the client upon completion of an assignment; or
(C) The tangible expression of an appraiser's service;
(21) "Review" means the act or process of critically studying a report prepared by another;
(22) "State-certified appraiser" means any individual who has satisfied the requirements for state certification in the State of Arkansas and who is qualified to perform appraisals of all real property types of any monetary size and complexity;
(23) "State-certified residential appraiser" means any individual who has satisfied the requirements for state certification in the State of Arkansas and who is qualified to perform appraisals of all property types up to a monetary size and complexity as prescribed by the Appraisal Subcommittee and the federal financial institutions regulatory agencies;
(24) "State-licensed appraiser" means any individual who has satisfied the requirements for state licensing in the State of Arkansas and who is qualified to perform appraisals of all property types up to a monetary size and complexity as prescribed by the Appraisal Subcommittee, and the federal financial institutions regulatory agencies;
(25) "State-registered appraiser" means any person who has satisfied the requirements for registering as set forth in 17-14-307 or requirements as may have been determined by the board and who may perform appraisals on any type of property except when the purpose of the appraisal is for use in federally related transactions;
(26) "Uniform Standards of Professional Appraisal Practice" means the entire body of rules, definitions, binding requirements, guidelines, explanatory comments, and ethical conduct provisions, as promulgated by the Appraisal Standards Board of the Appraisal Foundation, which provide the basis for an individual to conduct the practice of professional appraisal with integrity, objectivity, and independent judgment and in an ethical manner; and
(27) "Written appraisal" means a written statement used in connection with a federally related transaction that is independently and impartially prepared by a licensed appraiser or certified appraiser setting forth an opinion of defined value of an adequately described property as of a specific date, supported by the presentation and analysis of relevant market information.