Barry-
I see you've done some researching on some older threads; good for you!
IMO, this is an excellent and very technical issue. Let me repeat what I think the question is, so you can judge my answer:
1. You have been engaged to appraise a property for a single client and for a specific intended use.
2. Because of the client's delivery system, you were engaged three times: once for the 1004, once for a rent survey, and once for the operating income statement. Also, because of their upload system, you need to upload each form separately.
3. Does the individual engagements create individual assignments such that each one would be considered a stand-alone assignment. Also, if that is the case, for the Operating Income Statement if market rents are used, does that inclusion of the market rent on that form constitute an "appraisal" (similar to what occurs if the rent survey itself is ordered separately)?
That's a lot of stuff!!!!
Ok, I'm not a USPAP instructor, but it is my opinion that appraisers do not have to be USPAP instructors to be able to understand and apply the USPAP correctly.
Next, here is the definition of an assignment:
I think, in absence of some clear language in the engagement agreement that all three components are part of the same assignment/engagement, then they should be treated as separate assignments. Otherwise, one would have to assume they are all the same assignment. As I said, absent of a clear statement affirming that, it is an assumption (reasonable as it may be, but not clearly identified
by the client). And, there may be some logic by the client (regardless of the order/delivery portal's protocol) to order each component as a stand-alone assignment. No need to get into why that may be; I'm bringing it up to demonstrate it may be possible and therefore each of these orders should be treated as separate assignments.
We know that a stand-alone rent survey is an appraisal and needs to comply with those reporting elements consistent with an appraisal. What about the 216 Operating Statement?
My answer is this: If the rents used in the 216 Operating Statement are market rents that the appraiser has developed, then that market-rent indication is an appraisal. The analysis and conclusion of "market rents" isn't an appraisal just because it is on the 1007 form, it is an appraisal because of the development requirements are consistent with an appraisal and the results are linked to the valuation of the subject property. Report the market rents for a specific property on a blank paper, and that is an appraisal.
Therefore, yes, as a stand-alone assignment, if the 216 Operating Statement includes market rents developed by the appraiser, then the same reporting requirements apply to it as would apply to the rent survey itself.
If, however, one is given the actual rents and one does not conclude market rents for the subject, then (IMO) the appraiser has not developed a valuation and the appraisal reporting requirements do not apply.
The ironic thing here is the easiest way to comply with the USPAP is to just include the Rental Survey you already did (with its USPAP complaint reporting elements) as an attachment to the 216 with a separate certification and that would be that; but it seems that you cannot upload these forms separately.
I see three work-arounds:
1. Contact the client and ask them to send you an email that states that all three orders are the same assignment and that they were ordered individually due to the upload protocol. If they do, you can send the 216 by itself and reference it is part of the assignment X and cannot be considered separately from that assignment.
2. Scan the report you did for the rental survey report (except for the certification) and insert it into blank exhibit or map pages. There is your support for your market rent completed in a USPAP compliant manner. Include a new, signed certification.
3. Incorporate the rent survey by reference into your 216 report. Make sure that you state that assignment is completed for the same client/intended users, same property, etc. Provide a new signed certification for the 216.
Now, in the real world, do I think an appraiser would get sanctioned for not doing the above? Likely not. But the important thing here is if your 216 gets separated from the rest of your work, and someone does want to make a stink about it, the 216 by itself will not pass the USPAP compliance-test since it includes an opinion of market rent for a specific subject that was developed by the appraiser.
And that is the issue here as I see it: when we develop an opinion of value (market rents in this case) for an assignment, we need to follow the appropriate reporting standard to communicate that result.
The safest thing to do, absent of client-directives to the contrary, is to treat each order as its own assignment and ensure that the results are communicated consistent with the USPAP. Following this procedure will ensure that you are compliant no matter what the circumstances are.
Good luck!
