hypothetical condition

hypothetical condition

A condition that does not currently exist in fact but has some probability of existing in the future.An appraisal may determine the value of property in its current condition, and then also determine a value based on a hypothetical condition,such as a state's plans to build a new highway exit at the property.

References in periodicals archive ?
The Comment to the definition of Hypothetical Condition in the 2014-2015 edition of USPAP states:
The Comment to Standards Rule 1-2(g) states that a hypothetical condition may be used in an assignment only if use of the hypothetical condition is clearly required for legal purposes, or purposes of reasonable analysis or comparison.
Why would such a hypothetical condition appeal to a rational Humanist mind?
Some commentators have expressed the view that the phrasing amounts to a hypothetical condition and that the clause as a whole will apply only when the nonresident corporation is not a foreign affiliate.
Eliciting a patient's preference about a life-sustaining treatment or about the value of life under a hypothetical condition such as severe dementia) loses credibility when the investigator for physician) does not provide sufficient information to ensure an accurate understanding of whatever is being described.
27) Both Rahn, and Dolman and Seymour describe a hypothetical condition (known to be untrue) or at least an extraordinary assumption (not known if it is true).
Revised definitions for client, extraordinary assumption and hypothetical condition, as well as the addition of exposure time to the definitions section.
When appraising a property known to have environmental issues as if "clean" or unimpaired, a hypothetical condition exists--specifically, a condition known not to be true but assumed to be true for the appraisal.
The court cited the Uniform Standards of Professional Appraisal Practice, which provide that a hypothetical condition is "'a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis' and that an appraiser 'must .
Sometimes an appraiser invalidates the "as is" premise by using a hypothetical condition or simply excluding an "as is" market value.
A hypothetical condition deals with factors that are known to be false but are assumed to be true.
In my opinion, appraising fee simple for taxes or condemnation fall under jurisdictional exception, not hypothetical condition.