As used in this article, the following terms have the following meanings:
(a) “Appraisal” means an 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 or identified real property. An appraisal may be classified by the nature of the assignment as a valuation appraisal, an analysis assignment, or a review assignment.
(b) “Analysis assignment” means an analysis, opinion, or conclusion prepared by a real estate appraiser that relates to the nature, quality, or utility of identified real estate or identified real property.
(c) “Appraisal foundation” means the appraisal foundation established on November 30, 1987, as a not-for-profit corporation under the laws of Illinois.
(d) “Appraisal report” means any communication, written or oral, of an appraisal. An appraisal report may be classified by the nature of the assignment as a “valuation report”, “analysis report”, or “review report”. For purposes of this article, the testimony of an appraiser dealing with the appraisers analyses, conclusions, or opinions concerning identified real estate or identified real property is considered an oral appraisal report.
(e) “Board” means the real estate appraiser licensing and certification board established by the provisions of this article.
(f) “Certified appraisal report” means a written appraisal report that is certified by a state licensed or certified real estate appraiser. When a real estate appraiser identifies an appraisal report as “certified”, the real estate appraiser must indicate the type of licensure or certification he or she holds. By certifying an appraisal report, a state licensed residential real estate appraiser, a state certified general real estate appraiser, or a state certified residential real estate appraiser represents to the public that the report meets the appraisal standards established by this article.
(g) “Certified real estate appraiser” means a person who holds a current, valid certification as a state certified residential real estate appraiser or a state certified general real estate appraiser issued to him or her under the provisions of this article.
(h) “Complex appraisal” means an appraisal that: (1) For nonresidential property, relies on all three approaches to value, being the cost approach, the income approach, and the sales comparison approach, or does not have the characteristics of a noncomplex appraisal; and (2) for residential property, relies to any significant degree on at least two of the three approaches to value, with one approach being the sales comparison approach, or one in which the property to be appraised, the form of ownership, or the market conditions are atypical.
(i) “Cost approach” means an approach to valuing real estate that requires an appraiser to: (1) Develop an opinion of site value by an appropriate appraisal method or technique; (2) analyze comparable cost data as are available to estimate the cost new of the improvements if any; and (3) analyze comparable data as are available to estimate the difference between the cost new and the present worth of the improvements, also called accrued depreciation.
(j) “Income approach” means an approach to valuing real estate that requires an appraiser to: (1) Analyze comparable rental data as are available to estimate the market rental of the property; (2) analyze comparable operating expense data as are available to estimate the operating expenses of the property; (3) analyze comparable data as are available to estimate rates of capitalization or rates of discount; and (4) base projections of future rent and expenses on reasonably clear and appropriate evidence.
(k) “Licensed real estate appraiser” means a person who holds a current, valid license as a state licensed residential real estate appraiser issued to him or her under the provisions of this article.
(l) “Noncomplex appraisal” means an appraisal for which: (1) There is an active market of essentially identical properties; (2) adequate data is available to the appraiser; (3) adjustments to comparable sales are not large in the aggregate, specifically not exceeding the trading range found in the market of essentially identical properties; and (4) for residential properties, the contract sales price falls within the market norm or median sales price for homes or lots within the same area.
(m) “Real estate” means an identified parcel or tract of land, including improvements, if any.
(n) “Real estate appraisal activity” means the act or process of making an appraisal of real estate or real property and preparing an appraisal report.
(o) “Real estate appraiser” means a person who engages in real estate appraisal activity for a fee or other valuable consideration.
(p) “Real property interests” means one or more defined interests, benefits, or rights inherent in the ownership of real estate.
(q) “Review assignment” means an analysis, opinion, or conclusion prepared by a real estate appraiser that forms an opinion as to the adequacy and appropriateness of a valuation appraisal or an analysis assignment.
(r) “Sales comparison approach” means an approach to valuing real estate that requires an appraiser to analyze such comparable sales data as are available to indicate a value conclusion.
(s) “Valuation appraisal” means an analysis, opinion, or conclusion prepared by a real estate appraiser that estimates the value of an identified parcel of real estate or identified real property at a particular point in time.