Draft Reports

[Fred]

If an opposing counsel asked an appraiser how many versions of the report they completed prior to the final version, wouldn't it be better for that response to match the disclosures in the report they're looking at?

I have seen attempted discovery of such and follow-up depo questions.
You didn't write the report in one sitting, did you? No.
Did you always overwrite the existing file rather than saving the new file under another name? Yes
Why did you do that?


Who know, maybe someday I'll get to see that appraiser workproduct claim in action.

 

[Lawrence R.]

At what point does a collection of papers which contain most of the elements required in an appraisal report become an appraisal report?

An appraisal report becomes a "live" report upon the point of delivery. You can give an oral report of your findings, so how is that different from a "draft" copy? You don't sign an oral report. And you don't deliver your opinion of value until you have a USPAP compliant document to back it up. Other than that, you would be in violation.

Were you asking at what point it becomes USPAP compliant? that thread could go on for days.

 

[Brian Weaver]

If you've "delivered" a draft...you've delivered an appraisal.

As for oral reports:

Record Keeping:
An appraiser must prepare a workfile for each appraisal, appraisal review, or appraisal consulting assignment.

The workfile must include:

- the name of the client and the identity, by name or type, of any other intended users;
- true copies of any written reports, documented on any type of media;
- summaries of any oral reports or testimony, or a transcript of testimony, including the
appraiser’s signed and dated certification; and

 

[Terrel L. Shields]

having multiple signed reports

WHY SIGN THEM? WHY SUBMIT THE ENTIRE REPORT? You all are talking about resubmitting an entire report that's already finished. What is to stop someone from orally reporting a value or vetting information they might need. After all many appraisals are done as part of a larger consultation.

so how is that different from a "draft" copy? You don't sign an oral report

why sign a draft then?

The workfile must include:

- the name of the client and the identity, by name or type, of any other intended users;
- true copies of any written reports, documented on any type of media;
- summaries of any oral reports or testimony, or a transcript of testimony, including the
appraiser’s signed and dated certification; and

....... and ..."a written summary of an oral report must be added to the workfile within reasonable time after the issuance of the oral report." So. What is 'reasonable'? 2 hours? 2 days? 2 weeks? The Workfile must include the info, NOT the submission of oral testimony to the client.

There is a WORKFILE and there is a REPORT. The WORKFILE must exist. The REPORT doesn't have to exist....period. In fact, the appraiser violates USPAP by destroying the workfile but since there is a workfile doesn't the client have the right to view it?

 

[Fred]

At what point does a collection of papers which contain most of the elements required in an appraisal report become an appraisal report?

I couldn't answer that question until I knew the basis for assuming or concluding there is a point below which a report would become merely a bunch of papers?

 

[Glenn Forsyth]

This is a retraction/misplaced thread

 

[Couch Potato]

Frome the horses mouth ...

"FREQUENTLY ASKED QUESTIONS

196. Providing a draft of a report

Question:
My client has asked that I provide a draft of my appraisal report prior to issuing the report in final form. Is this permitted under USPAP?

Response:
USPAP does not explicitly define or address drafts of reports. When clients, other intended users, and appraisers use the term “draft,” they may mean many different things, from preliminary spreadsheets to a written document that contains all that will be in the “final” report except it is labeled as “draft” and does not contain signatures. Report drafts have traditionally been part of certain types of appraisal practice but have never been considered acceptable in other types of appraisal practice. (My emphasis added)

State-regulated appraisers should be aware of applicable state laws and regulations. Many laws define a “report” as any communication, written or oral, of an appraisal.

Whatever a “draft” may be in a particular context, it would always be part of “appraisal practice,” because it is a valuation service provided by an appraiser. When performing a service that is considered appraisal practice, but for which there are no applicable Standards Rules, an appraiser must still comply with the portions of USPAP that apply generally to appraisal practice. These include the DEFINITIONS, PREAMBLE, ETHICS RULE except for the Record Keeping section, COMPETENCY RULE, and JURISDICTIONAL EXCEPTION RULE.

The second sentence of the PREAMBLE states: It is essential that appraisers develop and communicate their analyses, opinions, and conclusions to intended users of their services in a manner that is meaningful and not misleading. Additionally, the ETHICS RULE states: An appraiser must not communicate assignment results in a misleading or fraudulent manner. Therefore, if an appraiser communicates with intended users prior to completion of an assignment, the communication must not be misleading.

The purpose of issuing a “draft” cannot be to allow the client to improperly influence the appraiser.

See Advisory Opinion 21, USPAP Compliance for further guidance."

If you don't want to provide "drafts", then don't. Just don't tell me I'm in violation of USPAP if I do.

I think you highlighted the wrong portion of the answer. As for being in violation of USPAP, any appraisal report may or may not violate USPAP. It is simply a question of how the work was done, not the label placed on it. :new_smile-l:

WHY SIGN THEM? WHY SUBMIT THE ENTIRE REPORT? You all are talking about resubmitting an entire report that's already finished. What is to stop someone from orally reporting a value or vetting information they might need. After all many appraisals are done as part of a larger consultation.
why sign a draft then?.......

Because USPAP requires a signed certification with all appraisal reports.

 

[PL1957]

I think you highlighted the wrong portion of the answer.

The OP's question was related to USPAP, not State law. Everyone is aware that states can pass additional requirements that go beyond USPAP, as they have done in North Carolina.

 

[Couch Potato]

The OP's question was related to USPAP, not State law. Everyone is aware that states can pass additional requirements that go beyond USPAP, as they have done in North Carolina.

The point of my post is State Laws Are Included In USPAP by reference. Violating state laws is a violation of USPAP.

 

[Carnivore]

The point of my post is State Laws Are Included In USPAP by reference. Violating state laws is a violation of USPAP.

Couch,

You got that backwards. Violating USPAP is violating most States Law.

USPAP is not law unless it is adopted by a state as such. Generic questions of USPAP in here are OK as long as its intended to bejust that Generic.

We dont disagree, I just view it differently then you.

FTR, A state not only can increase requirements, but also decrease requirements of USPAP. Even better, they can abolish USPAP altogether.

Does anyone doubt I am a states rights type?