Appraisal and Inspection Fundamentals

The process of determining the fair market value of properties or chattels.

To secure loans and assess credit risk. It aids in making informed decisions in lending and investment.

Land, buildings, and improvements like fences or landscaping.

Movable assets like vehicles, machinery, and equipment.

Assets that have no physical form, such as trademarks, copyrights, or patents.

Determines the value of a property by comparing it to similar properties that have recently been sold.

Calculates the cost of replacing or reproducing a property, less depreciation.

Compares the value of a chattel (movable asset) to recent sales of similar items.

The value of an asset based on its current market price, usually determined by the latest stock prices on a stock exchange.

A method of determining the value of a movable asset by comparing it to similar items that have been recently sold. Example: Comparing the value of a used Toyota HiAce to other similar models sold in the market.

An assessment of the estimated value of an asset using financial statements and the company's performance.

The ratio of the amount of a loan to the value of the collateral used to secure it. It's expressed as a percentage.

The process of verifying the physical condition and documentation of an asset before lending against it.

A form of collateral where an asset is held by a lender until a loan is repaid, ensuring the lender's security.

A reduction in the value of an asset due to wear and tear, age, or obsolescence.

Assets that can physically move, like cars, equipment, or jewelry.

The value of a piece of land is determined by factors such as location, use, and demand. This value typically varies depending on the area.

Areas with high commercial and residential activity, such as Makati or Bonifacio Global City, have high land values due to demand.

Rural areas often have lower land values due to limited commercial or residential demand. Their value is often based on agricultural potential.

Proximity to commercial hubs, transportation networks, and essential services like hospitals and schools increases land value.

Infrastructure improvements like expressways and railways enhance accessibility and increase land value by making an area more attractive.

Government policies that define allowable land use, like zoning regulations, impact land value. They restrict or encourage certain activities, affecting demand.

A certificate of title is a legal document proving ownership of land. It's issued by the Registry of Deeds and serves as evidence of ownership.

The Land Registration Authority (LRA) ensures the integrity of land records and ownership rights. It plays a crucial role in maintaining order and legality in land ownership.

The process of buying property from a seller with official documentation signed and verified by a legal authority.

Acquiring land through inheritance, based on the laws of succession (Civil Code of the Philippines).

Gifting land to someone with a legally recognized deed of donation, notarized and registered with the government.

The process of obtaining land rights directly from the government, often for public use or specific development projects.

Ensuring that land ownership documents are genuine, accurate, and legally valid, preventing disputes and fraud.

When two or more titles claim ownership of the same land, creating legal complications and potential disputes.

When boundaries between properties overlap, raising issues of ownership and potential encroachments.

Fraudulent documents claiming ownership of land, often requiring diligent verification.

A set of guidelines outlining how a business collects payments from its customers. These guidelines can be informal or formalized in a written document.

The timeframe a customer has to pay for goods or services. This can be expressed as a number of days or a specific date.

A period after the due date where a customer can pay without incurring penalties. This helps accommodate unexpected delays.

A set of steps taken to recover overdue payments from customers. These can range from friendly reminders to more formal actions.

A type of collection letter sent to a customer when a payment is overdue. It usually mentions the amount owed and any penalties that may apply.

The state of a business's economic environment, cultural practices, and customers' personal finances can heavily influence how promptly payments are made.

A method of resolving disputes regarding payments between a business and its customer. This can involve formal processes like mediation or arbitration.

A system that automates reminders or calls to customers about upcoming or overdue payments. This helps improve efficiency in collections.

A legal process helping individuals or businesses facing serious financial difficulties.

A debt backed by an asset, like a house or equipment, which is sold to pay off the debt first.

A debt not backed by an asset. It's paid after secured debts and other priority claims.

The process begins when the debtor, facing financial distress, voluntarily chooses to seek legal relief.

Banks with collateralised loans, meaning they have assets as security, often a property or equipment.

Suppliers who have provided goods or services but haven't been paid, giving them a claim for unpaid amounts.

The act of initiating legal proceedings with the intention of negotiating a debt settlement or seeking a court order to restructure repayments.

To reach an agreement between a debtor and creditors to settle a debt, usually involving revised payments or partial forgiveness.