HAR §16-114-2. §16-114-2 Definitions

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 114-5 §16-114-2 (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; 114-6 §16-114-2 (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 114-7