Appraisal - USPAP Flashcards
Retrospective Appraisal
an appraisal before the fire
Work File
documentation necessary to support an appraiser’s analysis, opinions, and conclusions
Update of an appraisal
new appraisal assignment
Standard 6
mass appraisal
mathematical expression of how supply and demand factors interact in a market
Standard 3
Review appraisal - the most recent market data available as of the effective date of the work being reviewed
Competency rule
requires appraisers to identify the problem to be solved
ASB
improves USPAP
Jurisdictional Exception
when it applies, it must be disclosed
void part of the USPAP, not whole
Standard 1
all exposure time must be identified if it is a component of the definition of value in the assignment
An appraisal review is best described
opinion of the quality of another appraiser’s work
Problem identification
identify assignment condition
Appraiser teaching appraisal
appraisal practice with no applicable standards
Modify scope of work
when find out property is not owner-occupied but investment property (intend use is for the use of property)
Violation of the Ethic rule
client instruct appraiser to report a specific property value as a condition of the assignment
Fee disclosures
in the certification and any transmittal letter, management section
An appraiser affixes his signature
certify recognition and acceptance of USPAP responsibilities
Acceptable fee arrangement
fee based on the volume of total business from a particular client
Discounting
Convert rents and other future benefits at a specific yield rate
Value
NOI / rate
Operating expenses reserves
only short-lived building component
Short-lived items
roofs, HVAC, water heater, parking lots,floor covering
Long-live items
foundation, framing (rarely schedule for replacement), kitchen cabinet
No Charge Appraisal
Report would need to conform to USPAP(standard 1 and 2 )
Appraiser A research for Appraiser B
Appraiser A:
no scope of work, record keeping, or performance standard apply
only needs to observe the competency rule
Work File Retention
The appraiser must have custody of the work file, or retention and retrieval arrangements with the party that does have custody
Ethic Rule - appraised multiple times for a property
- Disclosure can be written or oral
- Disclosure in certification
- Disclosed at the time of the assignment
When is the scope of work in an assignment acceptable?
When it meets or exceeds specified expectations and practices of others
Hypothetical Condition
is something known to be false but consider as true in the analysis
Extraordinary Condition
to be explain
ASC
maintains a national registry of licensed/certified appraisers
Change of client and intended users
NO once the assignment is completed
