Deed

A written instrument by which title to real property, either in whole or part, is conveyed. Personal property is generally conveyed by way of a bill-of-sale.

Departure Rule

An appraisal assignment in which the scope of work is less than, or different from, the work that would otherwise be required by the specific requirements of the Uniform Standards Of Professional Appraisal Practice.

Depreciation

Also called obsolescence. In the real estate industry, it is a loss in value due to any cause and consists of 3 components:

  • Physical: actual material wear and tear or destruction.
  • Functional: out dated or substandard design, layout, technology, etc.
  • External (aka economic): negative influences beyond a property’s borders.

Depreciation may be curable (where the value gained is greater than or equal to the cost to repair) or incurable (where the cost to repair exceeds the value gained).

Discounted Cash Flow Analysis

The process of converting or discounting future cash flows to present value by way of compounded annual rates of return (interest rates) that represents the competitive value of investments.

Drainage Easement

This is, as the name implies, an area on/in a parcel of land set aside for the flowage of water which may also include related structural components, such as: riprap, piping, etc. In condemnation, it is generally a partial taking of property rights, as the underlying ownership and economic utility usually remains unchanged.

Easement

An interest in real property that conveys use but not ownership of a portion a property’s rights and a portion (or sometimes all) of a property’s area or volume. It is a right of one property or person, by reason of the ownership of such easement, to use the land of another for a special purpose.

Economic Life

The time period for which something has or contributes value in the marketplace for a specific use. For example: the period of time in which additions to land, such as buildings, landscaping, parking, etc., contribute to the total value of a property. When value is no longer contributed by such additions, their economic life is said to have ended. Economic life is less than or equal to physical life.

Effective Age

The physical age a property addition, such as a building, appears to be. An upgraded and/or well maintained building often appears to be of less age than its actual chronological age and vice versa.

Eminent Domain

The power of a sovereign or government to take property from subjects or citizens. In the United States, it is the right of the federal government or a state or local government or agency thereof to acquire private property or property not held by such government or agency for public use through due process of law and upon payment of just compensation.

Encroachment

An intrusion of one person’s property into the property of another.

Estate

An interest in assets.

Exempt Well

Within an AMA, a person must have a groundwater right or permit in order to pump groundwater legally, unless the person is withdrawing groundwater from an exempt well. An exempt well is a well with a maximum pump capacity of 35 gallons per minute. Exempt wells may be used to withdraw groundwater only for non-irrigation purposes and are generally used for domestic purposes, including watering less than 2 acres of grass or garden. Exempt wells must be registered with ADWR but are subject to fewer requirements than non-exempt wells within AMAs and INAs.

Michael Wolff Real Estate Appraisal Services
Appraisal Glossary 3
Go to >
p 1
p 2
p 4
p 5
p 6
p 7
p 8
p 9