What is the legal definition of an appraisal?

Under FIRREA Title XI, appraisals used in federally related transactions must be performed in writing, in accordance with uniform standards, by individuals whose competency has been demonstrated through state licensure or certification. The Consumer Financial Protection Bureau describes an appraisal as a written document that shows an opinion of how much a property is worth. State statutes define appraisal activity similarly, as the preparation and issuance of an opinion of a property's value on a given date.

DC law defines the practice through the practitioner: under D.C. Code § 47-2853.151, a real estate appraiser is any person who renders or offers to render professional services in the act or process of estimating the value of real property and real estate. An appraisal is therefore the act or process of estimating the value of real property and real estate, and anyone offering that service professionally falls within the statutory definition.

In Michigan, an appraisal is an evaluation, opinion, conclusion, or analysis relating to the value of real property. Under Article 26 of the state Occupational Code, anyone who issues one must hold one of four appraiser credentials: Limited, State Licensed, Certified Residential, or Certified General. Narrow exceptions exist, such as a market analysis by a licensed broker or salesperson done for a customer with no fee charged, and assessments performed by a certified assessor.

Under Oregon law (ORS 674.100), real estate appraisal activity is the preparation, completion and issuance of an opinion as to the value of real property or an interest in real property, as of a given date or time. The definition applies whether or not the activity is connected to a federally related transaction, so the value opinion itself, rather than the loan type, defines the activity.

Rhode Island law treats an appraisal as an opinion or analysis of the value or use of real property. Since January 1, 2007, Rhode Island has been a "mandatory state": anyone issuing such opinions or analyses, including in consultant's reports or expert testimony, must hold an appraiser license or certification. Licensed real estate brokers and salespersons may still give opinions of value for listing, purchase, or sale purposes, but they may not call those opinions appraisals.

In Virginia, the Code of Virginia reserves the terms "appraiser" and "appraisal" for individuals licensed or certified by the Real Estate Appraiser Board. Since December 31, 1992, it has been unlawful to appraise real estate for compensation in Virginia without a license, and unlicensed persons may not perform appraisals for federally related transactions. An unlicensed assistant may assist only under the direct supervision of a licensed or certified appraiser who reviews and signs the report.