Appraisal - USPAP 2 Flashcards
Content
5 rules
10 standards
Statements
Rules - Ethics Rule
Conduct
Management (Fee issues, advertising)
Confidential
Rules - Record Keeping Rule
5 years; Jurisdictional exception 2 years
Applies to appraisal, appraisal review, and consulting assignments
Rules- Competency Rule
Pre-assignment & assignment conditions for knowledge & experience
Rules - Scope of Work Rule
obligation related to problem identification, research and analysis
Rules - Jurisdictional Exception Rule
preserves the balance of USPAP if a portion is con tray to law or public policy of a jurisdiction
Standard 1 & 2
Real property Appraisal
- Development
- Reporting
Standard 3
Appraisal Review
Development and Reporting
Standard 4 & 5
Real Property Appraisal Consulting
- Development
- Reporting
Standard 6
Mass Appraisal
Development and Reporting
Standard 7 & 8
Personal Property Appraisal
- Development
- Reporting
Standard 9 & 10
Business
- Developement
- Reporting
Statement
Full weights of a Standard rule
Scope of Work Rule
Why is proper disclosure Scope of Work important
Clients and intended users rely/understand on the assignment results -intended use -intended users -level of inspection -level of analysis -Type of data to be analyzed NOT report option
Retrospective Assignment
Competency Rule applies at the time of assignment rather than EFFECTIVE DATE
Bias
Preference or inclination that precludes an appraiser’s impartiality (公平公正）
Confidential Information
may be voided or modified to allow disclosure
1.State enforcement agencies
2.Third parties authorized by law
3.Authorized peer review (except violate law)
CANNOT BE DISCLOSED TO THE PROPERTY OWNER!
Anonymous Client
- Could be anonymous in the appraisal report
- Client must be noted by name in the work file and a disclosure must be included in the report
- The appraiser must know the identify of the client
- INTENDED USE must always be known
Ethic Rule
Promote preserve public trust
Net engage in criminal trust
Record Keeping
Confidential information can be disclosed
Acceptance of assignment - assessed value
USPAP does not prohibit the appraiser’s fee being based on the owner’s estimated value, the assessed value, the pending sale price or any other amount outside the appraiser’s control
State Licensing Agencies
empowered to discipline appraisers
Scope of Work - Assignment Condition
assumptions:
1. extra ordinary assumption
2. hypothetical condition
3. Laws and regulations
4. Legislative and court-made law
5. Administrative rules and ordinances
DO NOT INCLUDE CHARACTERISTIC
Development Standard
First: identify the problem to be solved
Comp # requirement
none from USPAP
Partial holding
USPAP allows (e.g. one-acre segment of a five-acre parcel)-must obtain data from reliable source for the intended use of the appraisal
Standard 2-2
Report - citation of the definition
Update of appraisal
a new assignment
Recertification of Value
confirms whether the conditions of a prior opinion have been met, and thus does not change the effective date
Restrict use report
client is the only intended user
Standard 3 - signed certification
Reviewer who signs any part of a report or a letter of transmittal must also sign the certification
Extraordinary Assumption
The appraiser’s inability to physically inspect site improvement (e.g. underground utilities)
Scope of Work
Have to withdraw assignment if there is no relevant information available.
Can Modify condition or use an extraordinary assumption
Standard 1-5
Analyze any current agreement of
Sale, option, or listing
Provide Sales Data only
- Appraisal practice with no performance standard or record keeping requirements
- Still comply Definition, Preamble, Ethic Rule, Competency Rule, Jurisdictional rule and Statement
Standard 1-3
To obtain credible results, to develop an opinion of highest and best use of real estate (market value)
*the concept of highest and best use is often not applicable with other types of value
Standard 1-4
Sales comp- data must avaialble
