2024 USPAP - "Personal Inspection" definition revised

[djd09]

USPAP doesn't even require an inspection...

 

[Dublin ohio]

is the rule is giving the okay for hybrid assignments for the appraiser chained to the desk that didn't personally inspect.

That was already permitted under the previous scope of work rule

 

[Sadie]

USPAP has never required a site visit as part of the inspection. That is part of the SOW.

 

[djd09]

the sow is acceptable when it meets of exceeds the clients expectations...expect for personal inspections

 

[Ricky LaFleur]

USPAP doesn't even require an inspection...

USPAP has never required a site visit as part of the inspection. That is part of the SOW.

Of course, but see below.

Of course, you could choose to not make a current inspection. But because you have, in fact, inspected the property on the 01/01/2024 date, are you supposed to lie and state that you didn't make a "personal observation" as they now defined, as if you were never there? That seems misleading to the user. Maybe that would mean you can't rely on observations and measurements taken at the past inspection as well.

There's a better SOW sitting here available to the appraiser in that the appraiser already inspected the property. You don't have to say "no inspection was deemed necessary".

Working RE: "For example, if an appraiser had made a personal inspection of a property six months ago and is subsequently engaged to perform a new appraisal on the property, the appraiser cannot certify that they made a personal inspection of the property unless they inspected it again as part of the scope of work for the new assignment."

From the context of the article. I would assume that the author's comments were geared toward residential lending work. I wouldn't try to directly apply the comments to non residential work. None the less I still think it all boils down to scope of work.

It may well be. Shoot, what else is there?

 

[Surf Cat]

That was already permitted under the previous scope of work rule

Must have missed that in the last USPAP class... the instructor wanted to be a Vaudeville singer and comedian on our Zoom class.

It was almost unbearable....

 

[George Hatch]

Say what you do, do what you say.

I did not personally inspect this property for this assignment. I did previously inspect the interior/exterior of the property on 03/12/2023 while performing a previous appraisal assignment. This appraisal is based in part on the assumption that the property attributes and conditions have not significantly changed in the interim. If this assumption is incorrect it would have an effect on my opinions and conclusions. ​

​

They are not requiring the appraiser to disavow or otherwise not disclose their prior inspection of the property.

 

[sputnam]

Let's say you have already made a personal inspection of a property on 01/01/2024, and subsequently you are engaged in another assignment for the same property later in the month (call it 01/30/2024) for an estate. Under previous USPAP, you could state that you made a personal inspection of the property on 01/01/2024 and either 1) use the retrospective effective date of the same 01/01/2024 or 2) make the effective date current as of 01/30/2024 and rely on the past inspection with the EA that property is in same condition. Is the updated USPAP saying you cannot state that you made a personal inspection unless it was part of your present assignment, and to state such means you must revisit the property, or is the article reading more into the update than what was actually changed?

That's not different with the USPAP changes. You have always been able to invoke an EA that the condition of the subject is the same on the new effective date as it was when you previously inspected the property.

As already stated, USPAP does not require any inspection of the subject property. That is a requirement imposed by the certifications that are part of most appraisal forms.

 

[Red Flint]

2024 USPAP Standards Rule 1-2 Problem Identification:

Comment on (i)-(v): An appraiser may use any combination of a property inspection, documents, such as a legal description, address, map reference, copy of a survey or map, property sketch, photographs, or other information, to identify the relevant characteristics of the subject property.

 

[Dale Floyd]

I understand the confusion displayed by the OP, because there is so much legalese in USPAP and some instructors tend to make things more difficult than they should.

Along with some others, it all must be stated in the SOW as that is ultimately the responsibility of the appraiser. We've had a new assignment engagement by a different party many times, wanting us to convert a prior appraisal completed within the past weeks or months from one client to somebody else. We always go down that option of using the prior effective date or making an EA, depending on the lender of course. We charge an appropriate fee for a new assignment less whatever discount (if applicable) and move on. If they require a new effective date, we charge appropriately and reinspect. I don't see anything that has changed in that respect, as long as all is identified in the SOW.

Regardless - It's a good discussion to have out here, even as a refresher.