Dictionary of Real Estate Terms: assumptions and limiting conditions
assumptions and limiting conditions
conditions on which an appraisal is based. The appraisal report must contain a statement describing these.
Example: The assumptions and limiting conditions listed in an appraisal report typically include (but are not limited to) these:
- title and legal description are correct.
- Property is appraised free and clear of liens.
- Management and ownership are responsible.
- Factual information received from others is reliable.
- Engineering is correct.
- Illustrative material is to assist the reader and may not be exact.
- There are no hidden defects in the property or soil.
- There is compliance with environmental laws.
- All licenses necessary to operate the property have been obtained.
- There are no encroachment.
- There is compliance with zoning and land use regulation.
- There are no hazardous substances affecting the property.
