Massachusetts General Laws ch. 112 sec. 276 – Definitions applicable to Secs. 276 to 289
Section 276. As used in sections 276 to 289, inclusive, the following words shall have the following meanings unless the context clearly requires otherwise:—
Terms Used In Massachusetts General Laws ch. 112 sec. 276
- Appraisal: A determination of property value.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Interests: includes any form of membership in a domestic or foreign nonprofit corporation. See Massachusetts General Laws ch. 156D sec. 11.01
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
”Applicant”, a person who applies to be registered as an appraisal management company in the commonwealth.
”Appraisal” or ”real estate appraisal”, a written analysis, opinion or conclusion prepared by a real estate appraiser relating to the nature, quality, value or utility of specified interests in, or aspects of, identified real estate. An appraisal may be classified as a valuation or an analysis, or both. A valuation is an estimate of the value of real estate or real property. An analysis is a study of real estate or real property other than estimating value.
”Appraisal assignment”, an engagement for which an appraiser is employed or retained to act, or would be perceived by a third party or the public as acting, as a disinterested third party in rendering an unbiased analysis, opinion or conclusion relating to the nature, quality, value or utility of specified interests in, or aspects of, identified real estate.
”Appraisal management company”, an entity that: (i) provides appraisal management services to creditors or to secondary mortgage market participants, including affiliates; (ii) provides such services in connection with valuing a consumer’s principal dwelling as security for a consumer credit transaction or incorporating such transactions into securitizations; and (iii) within a given 12–month period, oversees an appraiser panel of not less than 16 certified or licensed appraisers in the commonwealth or not less than 25 certified or licensed appraisers in 2 or more states; provided, however, that an appraisal management company shall not include a department or division of an entity that provides appraisal management services only to that entity.
”Appraisal management services”, any of the following: (i) recruiting, selecting and retaining appraisers; (ii) contracting with certified or licensed appraisers to perform appraisal assignments; (iii) managing the process of having an appraisal performed, including providing administrative services such as receiving appraisal orders and appraisal reports, submitting completed appraisal reports to creditors and secondary market participants, collecting fees from creditors and secondary market participants for services provided and paying appraisers for services performed; or (iv) reviewing and verifying the work of appraisers.
”Appraisal practice”, valuation services performed by an individual acting as an appraiser including, but not limited to, appraisal, appraisal review or appraisal consulting.
”Appraisal report”, a written report of an appraisal.
”Appraisal review”, the act or process of developing and communicating an opinion about the quality of another appraiser’s work that was performed as part of an appraisal assignment related to the appraiser’s data collection, analysis, opinions, conclusions, opinion of value or compliance with the Uniform Standards of Professional Appraisal Practice; provided, however, that ”appraisal review” shall not include: (i) a general examination for grammatical, typographical or similar errors; or (ii) a general examination for completeness, including regulatory or client requirements as specified in an agreement that does not communicate an opinion of value.
”Appraisal services”, the services required to perform an appraisal, including defining the scope of work, inspecting the property, reviewing necessary and appropriate public and private data sources including, but not limited to, multiple listing services, tax assessment records and public land records, developing and rendering an opinion of value and preparing and submitting the appraisal report.
”Appraiser” or ”real estate appraiser”, a person who develops and communicates real estate appraisals and who holds a current, valid certificate as a state-certified general real estate appraiser, state-certified residential real estate appraiser or state-licensed real estate appraiser pursuant to section 178; provided, however, that an appraiser who contracts with another certified or licensed appraiser to perform or assist in the performance of an appraisal assignment shall not be classified as an employee under section 148B of chapter 149.
”Appraiser panel”, a network, list or roster of licensed or certified appraisers approved by an appraisal management company who perform appraisals as independent contractors for appraisal management companies; provided, however, that such licensed or certified appraisers shall include: (i) appraisers accepted by the appraisal management company for consideration for future appraisal assignments in covered transactions or for secondary mortgage market participants in connection with covered transactions; and (ii) appraisers engaged by an appraisal management company to perform at least 1 appraisal in a covered transaction or for a secondary mortgage market participant in connection with a covered transaction; and provided further, that an appraiser shall be considered an independent contractor if the appraiser is treated as an independent contractor by the appraisal management company for federal income tax purposes.
”Board”, the board of real estate appraisers established in section 92 of chapter 13.
”Controlling person”, a person who is: (i) an officer or director of an appraisal management company or an individual who holds an ownership interest of not less than 10 per cent in an appraisal management company; (ii) employed, appointed or authorized by an appraisal management company who has authority to enter into a contractual relationship with clients to perform appraisal services and who has the authority to enter into agreements with independent appraisers for the completion of appraisals; or (iii) authorized to direct or cause the direction of the management, policies or procedures of an appraisal management company.
”Covered transaction”, an extension of consumer credit that is or will be secured by the consumer’s principal dwelling.
”Dwelling”, a residential structure that contains 1 to 4 units, whether or not that structure is attached to real property; provided, however, that ”dwelling” shall include a condominium unit, a cooperative unit, a mobile home and trailer if it is used as a residence.
”Employee in charge”, a designated employee of an appraisal management company who holds a valid license as an appraiser and who has the responsibilities and obligations to the board as set forth in section 281.
”Person”, a natural person or an organization, including a sole proprietorship, partnership, limited liability company, limited partnership, corporation, association or other group engaged in joint business activities, however organized.
”Real estate”, an identified parcel or tract of land, including any improvements.
”Real property”, the defined interests, benefits and rights inherent in the ownership of real estate.
”Registrant”, a real estate appraisal management company registered pursuant to sections 276 to 289, inclusive.
”Uniform Standards of Professional Appraisal Practice”, the appraisal standards promulgated by the Appraisal Standards Board of the Appraisal Foundation.
”Valuation services”, services pertaining to all aspects of property value.