This regulation is instituted in accordance with paragraph 1 of Article 19 of Real Estate Appraiser Act.

The definitions of the terms referred to in this Act are as follows:
1. Market value: the reasonable value, expressed as a monetary amount, of a marketable real estate whose transaction is formed with willing buyers and sellers whose actions are prudent and guided by professional knowledge and under no influence of coercion. This transaction is completed through appropriate marketing and under normal conditions.
2. Specific market value: the value, expressed as a monetary amount, of a marketable real estate formed under one of the below specific market conditions; for purpose of amalgamation of ownership on a real estate with rights other than ownership, for purpose of merger of real estates, or for purpose of division of real estates that is against the economic rationality.
3. Specified market value: the value, expressed as a monetary amount, of a marketable real estate that is formed under specified market conditions.
4. Special value: the estimated value, expressed as a monetary amount, of a non-marketable real estate.
5. Market rent: the reasonable rental, expressed as a monetary amount, of a marketable real estate whose tenancy is agreed to with willing landlords and tenants whose actions are prudent and guided by professional knowledge and are under no influence of coercion. This tenancy is completed through appropriate marketing and under normal conditions.
6. Specific rent: the rental value, expressed as a monetary amount, formed for the purpose of lease renewal or amalgamation of real estates.
7. Date of value opinion: the effective date for the value of a real estate.
8. Date of property inspection: the date that a real estate appraiser undertakes investigation and analysis on the site of the subject property.
9. The subject property: land, buildings, crops and interest upon them, which is appraised by a real estate appraiser commissioned.
10. The comparable property: a property comparable with the subject property after adjusting their differences in respect of property conditions, transaction date, local factor, and individual factor.
11. Primary market area: the geographic area within which the subject property and comparable properties are substitutable and affect prices each other.
12. Neighborhood area: the geographic area with a high level of homogeneity within which a number of properties are surrounded by subject property or comparable properties which possess same or similar use purposes with those properties.
13. Similar area: the geographic area inside a primary market area but outside the neighborhood area within which a number of properties are found to possess similar use purposes with that of the subject property.
14. General factors: the common factors in respect of natural, political, social and economic conditions that comprehensively affect the real estate market and property price.
15. Local factors: the factors that affect the price of properties between different neighborhood areas.
16. Individual factors: the factors that affect the property price due to property-specific characteristics.
17. Highest and best use: the legally permissible, physically possible, appropriately justified and financially feasible use that maximizes the highest benefit on land, and initiated by people who are objectively with reasonable sense and general capability.

A Real estate appraiser should regularly gather information of real estate price related to supply and demand, environmental transitions, population, residents’ habit, public facilities, transportation, income level, industry structure, financial market, profit level in real estate business, land use planning, regulation and present use, natural disaster, future development, and other essential data as the basis of tracing real estate price.

A Real estate appraiser should regularly collect cases of comparable properties and information with respect to their transaction, income and cost, and also verify the reliability of collected information.
The information specified in the preceding paragraph could be obtained from the persons concerned, neighbors, other real estate appraisers, real estate brokers, land administration agents, land administration departments, financial institutions, public land management institutions, judicial institutions, mass medias, or other relevant sectors.

A real estate appraiser should undertake appraisal, including investigation, survey, compilation, comparison, analysis, and adjustment using logic and rules of thumb in an objective and impartial manner.

The appraised value of a real estate should be in correspondence with its value on the date of value opinion. The types of value include market value, specific market value, specified market value and special value. The types of rent include market rent and specific rent.
The type of value should be specified in an appraisal report. When appraising the specified market value, the appraisal conditions should be stated, and the market value also be appraised.

The area of properties appraised according to this regulation is the registered area for properties already registered. The area should be investigated and specified for a property that has not yet been registered or for a property only part of it is appraised.