USPAP Minimum requirement to Inspect

[mark hurlock]

USPAP doesn't require an Inspection.(Ever)

USPAP doesn't require a FORM to be used. (Ever)

USPAP does require a Scope of WORK (Always)

A Scope of Work may require an inspection or a form, but USPAP does not.

If the scope of work determines that an inspection is necessary, “assumptions are not credible” can you complete a USPAP compliant report if you do not inspect the property?

 

[mark hurlock]

USPAP
A Scope of Work may require an inspection or a form, but USPAP does not.

Is the scope of work rule not part of USPAP?

Is complying with the scope of work rule not complying with USPAP?

 

[Jeffery Hall]

With re-inspections: Better safe than sorry.

Oh, about 20 years ago I appraised a house. Made the inspection, house was there.

Two weeks after inspectin a forest fire burned about 45,000 acres. This house was in it.

About four weeks after inspection escrow was scheduled to close.

True story.

What if the lender had asked me to go ahead and certify the value just before COE? Suppose I was away and didn't know of the fire and certified it? Then the lender funds on a non-existent house? All possible outcomes are all bad.

USPAP, GSE Requirements aside, I ALWAYS reinspect, even if it is not convenient.

 

[Terrel L. Shields]

If the scope of work determines that an inspection is necessary, “assumptions are not credible” can you complete a USPAP compliant report if you do not inspect the property?

If the SOW requires an inspection, then no you cannot complete a USPAP compliant report.

If the SOW does not require an inspection, then yes you can complete the report without an inspection. I do it all the time. What's to inspect for a mineral right? Can I see underground?

If you do a desktop appraisal, then the caveat is that you are assuming the improvements exist as stated in the report, even if they burnt to the ground. You could be asked to do that when they are trying to determine a pre-fire value for the home.

Same with retrospective reports. I inspected a house that was still occupied in 1991. It's an abandoned hull now. I did have a statement by the son of the owner what the house looked like then. I have to caveat same for the simple reason I wasn't there then.

 

[sputnam]

If the SOW requires an inspection, then no you cannot complete a USPAP compliant report.

If the SOW does not require an inspection, then yes you can complete the report without an inspection. I do it all the time. What's to inspect for a mineral right? Can I see underground?

If you do a desktop appraisal, then the caveat is that you are assuming the improvements exist as stated in the report, even if they burnt to the ground. You could be asked to do that when they are trying to determine a pre-fire value for the home.

Same with retrospective reports. I inspected a house that was still occupied in 1991. It's an abandoned hull now. I did have a statement by the son of the owner what the house looked like then. I have to caveat same for the simple reason I wasn't there then.

Exactly right.

 

[mark hurlock]

Exactly right.

Sputnam,

if in certain circumstances you can not complete a compliant report without an inspection, how can you make the statement that USPAP does not “ever” require a property inspection?

The definition of compliant is to conform to a requirement.

 

[Pittsburgh Pete]

Sputnam,

if in certain circumstances you can not complete a compliant report without an inspection, how can you make the statement that USPAP does not “ever” require a property inspection?

The definition of compliant is to conform to a requirement.

the circumstances may require/dictate an inspection; USPAP doesn't.

 

[mark hurlock]

the circumstances may require/dictate an inspection; USPAP doesn't.

Pete,

are you saying that the scope of work rule is not part of USPAP and that compliance with the scope of work rule is not required by USPAP?

I would really like to clear this up with someone giving an honest answer to these questions.

Thanks in advance.

 

[Pittsburgh Pete]

Pete,

are you saying that the scope of work rule is not part of USPAP and that compliance with the scope of work rule is not required by USPAP?

I would really like to clear this up with someone giving an honest answer to these questions.

Thanks in advance.

Circumstances determine the appropriate scope of work. The required scope of work to develop a credible report dictates the level of inspection. USPAP is silent on the need/requirement of an inspection--it is not addressed directly.

 

[mark hurlock]

Circumstances determine the appropriate scope of work. The required scope of work to develop a credible report dictates the level of inspection. USPAP is silent on the need/requirement of an inspection--it is not addressed directly.

Pete,

the question is, if the scope of work determines an inspection is necessary and the scope of work rule requires the appraiser to perform that inspection, then how could an inspection not be required by USPAP?

I really would like an explanation how compliance with the scope of work rule is not compliance with USPAP.

Thanks again.