2055 & USPAP

[Doug Trites]

I am doing a 2055 Exterior and have checked the box, subject to the following required inspection based on the extraordinary assumption that the condition or deficiency does not require alteration or repair. I have checked this box because I have used the extraordinary assumption due to not knowing the interior condition of the subject and using the assumption that the interior is in average condition. The lender wants me to check "as is". It is my understanding that when we are invoking an extraordinary assumption, we are to use the box I used and spell out why, which I did. Am I wrong with this point. I thought USPAP required we do it this way. Any information on this matter would be of great help.

 

[residentialguy]

You are correct. Tell them that if they want it as-is, it would be misleading to say that without complete confidence that it is true. Therefore, they will have to bump the order up to a full inspection 1004. Charge them appropriately.

 

[EddieB]

I would suggest re-reading the pre-printed 2055 form, then for clarification re-reading Advisory Opinion 2 and FAQ #144 from USPAP

 

[residentialguy]

the SCOPE OF WORK RULE states:
"An appraiser must not allow assignment conditions to limit the scope of work to such a degree that the assignment results are not credible in the context of the intended use."


an appraiser must withdraw from the assignment unless the appraiser can:
- modify the assignment conditions to expand the scope of work to include gathering the necessary information; or
- use an extraordinary assumption about such information, if credible assignment results can still be developed

​

 

[andrew81]

faqs 168 and 169

 

[Don Clark]

I would suggest re-reading the pre-printed 2055 form, then for clarification re-reading Advisory Opinion 2 and FAQ #144 from USPAP

#144 refers to a retrospective appraisal.

Page F-77 and FAQ #168 & 169 applies to this case. Read them.

 

[EddieB]

#144 refers to a retrospective appraisal.

Page F-77 and FAQ #168 & 169 applies to this case. Read them.

You are correct Don, pulled 2011 off shelf.

No where do I suggest not using EA when necessary

 

[residentialguy]

what's USPAP????

 

[EddieB]

what's USPAP????

Sorry Res, would you care to expand?

 

[Peter LeQuire]

And, having done all that, read the Scope of Work and Cert. 10 that are part and parcel of the 2055 report. You can't EA away what those two items require you to do.