1004D Minor Form

[form1025]

General consensus.

When completing a 1004D minor form,is it necessary to provide any addenda from the original report since the 1004d is incorporated into the original report ?
Example: Original report(construction completion) had see addendum for legal description,when completing the 1004d, inherently the software transfers this data into the corresponding fields in the 1004d form. Does the legal description addendum need to be attached when submitting the update(1004d)?

 

[Tim Hicks (Texas)]

A 1004D is a new assignment. What is required on any new assignment? Include it.

 

[hastalavista]

General consensus.

When completing a 1004D minor form,is it necessary to provide any addenda from the original report since the 1004d is incorporated into the original report ?
Example: Original report(construction completion) had see addendum for legal description,when completing the 1004d, inherently the software transfers this data into the corresponding fields in the 1004d form. Does the legal description addendum need to be attached when submitting the update(1004d)?

Yes, IMO, several things, at a minimum, are needed in order to make the appraisal compliant with SR2-2:
1. While there may not be any significant trend-changes in the market, a new market conditions analysis is necessary; IMO, a new 1004MC would meet this requirement.
2. A summary of the sales analyzed to conclude the opinion of value (which, in this case, is expressed as a benchmark against the prior appraisal) is necessary. For simple assignments, I think a narration is sufficient. If the original appraisal was complex, I'd argue that a similar level of analysis needs to be included in the update (a grid, or sometimes I use qualitative ranking).
3. Each appraisal report requires its own signed certification. The 1004D form's certification is not similar to what is required by USPAP.

If you read A0-11, and look at the table that describes what needs to be summarized in an "Appraisal Report" (p. A-24), you can see how items vii (market conditions and sales analyzed) & xii (a new signed certification) logically need to be included.
The remainder (assuming there has been no change, like H&BU) can be incorporated because it is still accurate and relevant.

Some will argue that it isn't necessary to do the above. I strongly disagree with that argument.

So, I think I gave you the long answer to Tim's shorter and more concise answer:

A 1004D is a new assignment. What is required on any new assignment? Include it.

 

[Mile High Trout]

Unwritten rules of the 1004d.

Never do a value update 1004d, unless you completed the original appraisal. Tell the client to call back the original appraiser, or order a full new appraisal from you instead.

If at all possible, never do a value update service portion, if all you needed the 1004d for was to verify completion of repairs on a subject to report.

Politely decline the 1004d order to verify repairs for another appraisers subject to conditions.

Always inform clients that if they would have used your services for the front end work, you will always be available for final orders.

Never take a 1004d for less than 150, and tag an extra hundred to 250, if you're doing both value and repair verification.

 

[form1025]

Clarification: I am only speaking to the bottom portion of the form(Certification of Completion)

 

[Mile High Trout]

Yeah, very important points and distinctions to make.

Part of the sow, and appraiser disclosure, specifically detailing the service and scope provided or agreed upon.

And that takes us back to the unwritten rules.

It's the appraisers job to determine and opinion what falls into subject to or not.

If you're just doing 1004d for some one elses subject to conditions, I hope you agree with them. You're making an assumption regarding their original opinions being valid. Providing a new appraisal product yourself which actually says two things. 1. The previously noted repairs are completed (yes, you would detail the original reports specific itemized repair requirements). 2. You affirm by submitting the 1004d, there was nothing else you would opinion as health and safety related that may require subject to conditioning.

It's all quite easy when you're following up on your own reports, because you can import or print back that single addenda page with your original requirements. When following up on someone elses work, it can get complicated. And if you find that something else needs repaired, you'll get in a sticky situation with a client where you stop the show and impose additional conditions. It's all not worth it, even if you are getting the 150 fee for the final subject to verification.

$400 base + $150 final = $550. That's fair for full service. If a client is trying to get around that fee schedule, send them packing.

 

[alex gilbert]

As usual, Denis is spot on. If you are completing the Update section of the 1004D, you should (must) summarize how you came to your conclusions. Although the form itself doesn't really ask for this, it is identifed as a Summary Appraisal Report, therefore support for your results needs to be summarized, not just stated.

You can incorporate your original report by reference, however, there are 7 elements (the bullet points on pgs A-8 and A-9 in AO-3) that must be specifically identified and cannot simply be incorporated by reference.

 

[Tim Hicks (Texas)]

Clarification: I am only speaking to the bottom portion of the form(Certification of Completion)

It is still a new assignment that needs proper documentation that every new assignment requires. (disclosing prior service, exposure time, scope of work, etc).

 

[DWiley]

It is still a new assignment that needs proper documentation that every new assignment requires. (disclosing prior service, exposure time, scope of work, etc).

To clarify, those three items are required in an appraisal update, but not if the assignment is for a completion inspection only.

See lines 265-266 in current USPAP.

 

[JSmith43]

To clarify, those three items are required in an appraisal update, but not if the assignment is for a completion inspection only.

See lines 265-266 in current USPAP.

Great clarification. Generally, most of us trust Tim Hicks technical comments. I am sure he is grateful for the correction.