What are the stipulations, limitations, and assumptions underlying an appraisal report called?

The term that refers to the stipulations, limitations, and assumptions underlying an appraisal report is known as "Limiting Conditions." These conditions are essential for both the appraiser and the user of the appraisal report because they set the framework within which the appraisal has been conducted.

Limiting conditions are explicitly stated in the report to clarify the scope of the appraisal, the methodologies used, and any factors that might affect the value concluded in the report. By outlining these limitations, the appraiser provides transparency about what is and is not included in the analysis, what assumptions were made, and any external factors that could influence the valuation.

This ensures that all parties involved understand the context and reliability of the appraisal. Without acknowledging these conditions, the relevance and accuracy of the appraisal might be misconstrued, leading to misinterpretations of its findings. Thus, these terms are crucial components of an appraisal report, helping to establish its validity and limitations clearly.