Contract Review - Part Two

[Hamlet]

It is not being greedy to want to be paid for your work!

I agree, and it is a business decision. I would just like a little clarity from USPAP instead of the ambiguity that LOs and MBs and others like to use to their advantage. "Your competition does it for free...." I compare it to the never ending comp check battle. We all know those who do the "free comp checks" aren't completing USPAP compliant work.

 

[Webbed Feet]

It is a new contract for services! That's why!

<.... snip....>Response:
No. Requests to perform additional research or analysis change the scope of work, but do
not create a new assignment. The additional work can be performed as part of the original assignment. The appraiser may decide, as a business decision, to treat the request for additional research and analysis as a new assignment, but it is not required.

Fantastic! You've found another sidestepped noncommittal answer for us! .. It says no, and then says yes. I say the ASB is using the word "Assignment" to mean the single, one-time, "client-appraiser" relationship that was established by the act of the appraiser and client entering into an engagement contract with one another. If anyone here has ever had to study contract law in order to get a license (a real estate broker's license would be a good example) then it would be known that once a servicing party has completed all elements of a contract and the other party has paid their consideration (CAD) then that contract is satisified. Asking for additional work is asking for a new contract for services.

So why are you guys so hung up on not reopening an assignment?

I am not at all hung up on the client understanding that they are asking for a new contract for additional services. I am a little bit hung up on the fact the ASB doesn't see that a new second "client-appraiser" relationship is established when the parties contract a second time for additional services. They keep attempting to treat the "Assignment" as if it is something different from an engagement contract or the appraiser-client relationship. A great deal of this is at the entire root of the problems going on with underwriters coming back after the fact of appraisal report completion, asking for additional services, and the appraiser's client pressuring the appraisers to do it for free as if the stips are corrections instead of additional requests for service. Extremely poor engagement contracts are historically at the root of this for all appraisers.

Our industry has been brainwashed, and is full of completely lame business people.

Webbed.

 

[JSmith43]

That's W3C.

It may be a problem with the way you have your computer set to deal with PDF files. The link works fine on my Mac in Safari. I bet if you check your download location, you will find the PDF waiting for you to view. (PDF pages can be set to view in the browser of independently.)

Maybe, Couch. But I still suspect a breach in the WD40 standards. I tested my wife's MacBook using default Safari settings and it automatically opened up the linked PDF.

The Mac I use primarily for internet and light duty graphics is a G4 Mini. So, the Safari version written for the Intel chip set works at default, but the G4 version does not. It might just be different default settings, but good grief, I'm into overtime on this side issue as is to consider more exploration.

I would think the WD45....oops, that was an Allis Chalmers tractor I used to own, the W3C standards should be platform and/or processor agnostic, don't you think? I'm not so much of a tech weenie as you to know for sure:icon_mrgreen:

 

[The Warrior Monk]

The A to the Q did not say "no, it is not a new assignment."

It said: "USPAP would not mandate treating the request as a new assignment."

I think appraisers on the forum are often victims of overreliance on forum anecdotes.

So accept it as a request for a post appraisal consultation if you like. Or a new assignment if you like. Or analyzing new information after the effective date with a new report date if you like. Or tell the client to pound sand if you like.

USPAP allows flexibility. It has to. It's only 100 pages or so. How can you cram the entire real estate market and everything that goes on it in it under every conceivable permutation in 100 pages? I think USPAP is a brilliant piece of work.

I read the Q&A before reading all of the responses. I concur with Greg's analysis.

It says "would not mandate."

It does not say "provide neverending services for free, as others seem to be implying.

Edit: After rereading Greg's comments, I'm not sure I concur that USPAP is a brilliant piece or work...a piece of work maybe, but not necessary a brilliant one.

 

[Carnivore]

I for one must by "out-of-step" because what the ASB offered as the response to the question regarding the analysis of the revised contract of sale was (and is) my position.

I happen to think you are out of step. The answer by the ASB is very poor.

I suppose you and the ASB are correct if you and they believe a specific assignment is the never ending story!

I firmly believe this is not even a USPAP issue and the ASB had no good reason to meddle in a business operation. This does not mean I am saying there are not USPAP issues within the question. I am stating this is a business question first with some USPAP implications.

Before any of you get your hackles up, just remember there are SOW requirements when an assignment is created and agreed to by both parties. Contacts law 101 and the relevant USPAP sections.

So even if you agreed to make significant changes when they arise in the original assignment, there still will be multiple reports. If you did not agree then this is a simply and purely a new assignment.

The ASB errored greatly when they did not first pose the question of original assignment conditions and answered that first before moving on to relevent USPAP issues on a continued assignment or new assignment.

--------------------------------------

http://commerce.appraisalfoundation.org/html/USPAP2008/USPAP_folder/uspap_foreword/DEFINITIONS.htm

ASSIGNMENT: a valuation service provided as a consequence of an agreement between an appraiser and a client.

ASSIGNMENT RESULTS: an appraiser’s opinions and conclusions developed specific to an assignment.

Comment: Assignment results include an appraiser’s:

opinions or conclusions developed in an appraisal assignment, such as value;

opinions of adequacy, relevancy, or reasonableness developed in an appraisal review assignment; or

opinions, conclusions, or recommendations developed in an appraisal consulting assignment.

 

[Couch Potato]

I happen to think you are out of step. The answer by the ASB is very poor.

I suppose you and the ASB are correct if you and they believe a specific assignment is the never ending story!

I firmly believe this is not even a USPAP issue and the ASB had no good reason to meddle in a business operation. This does not mean I am saying there are not USPAP issues within the question. I am stating this is a business question first with some USPAP implications.

I think that is what the response was trying to convey. Part of the previous assignment, a new assignment, either way is not a problem as far as USPAP is concerned. Had the ASB answered it must be a new assignment, they would have been putting their nose where it doesn't belong. They are saying it doesn't have to be considered a new assignment, not that it can't be considered a new assignment.

 

[Stone]

I think that is what the response was trying to convey.

Agreed, and I don't understand all the hand-wringing regarding this answer. Greg Boyd's earlier comment:

I think appraisers on the forum are often victims of overreliance on forum anecdotes.

seems quite apt for this discussion.

 

[Carnivore]

I think that is what the response was trying to convey. Part of the previous assignment, a new assignment, either way is not a problem as far as USPAP is concerned. Had the ASB answered it must be a new assignment, they would have been putting their nose where it doesn't belong. They are saying it doesn't have to be considered a new assignment, not that it can't be considered a new assignment.

Say what you mean mean what you say! I dont disagree with you. I disagree with them. The first question as I said earlier is this requirement part of the orignal SOW/Agreement for Services? That question was not first addressed.

If this had been included as a possiblity in the original assignment then the answer is no it is not a new assignment, not maybe!

If the additonal requirments were not included then the answer is yes it is a new assignment, not maybe!

 

[Couch Potato]

Say what you mean mean what you say! I dont disagree with you. I disagree with them. The first question as I said earlier is this requirement part of the orignal SOW/Agreement for Services? That question was not first addressed.

If this had been included as a possiblity in the original assignment then the answer is no it is not a new assignment, not maybe!

If the additonal requirments were not included then the answer is yes it is a new assignment, not maybe!

I can't help but think quality of the response was limited by an editor somewhere saying it needs to fit in a given amount of space. I don't think even the person who wrote it considers it a well written, exhaustive response. (If they do, they should be fired.) :new_smile-l:

 

[Carnivore]

I can't help but think quality of the response was limited by an editor somewhere saying it needs to fit in a given amount of space. I don't think even the person who wrote it considers it a well written, exhaustive response. (If they do, they should be fired.) :new_smile-l:

Considering who wrote this don'cha think that is rather lazy. What was the great urgency to get this out to the masses.
My guess is that with $4.00 dolalr gas and less work overall appraisers are demanding mo'money. The mo'money is because the profit margin is totally squeezed to the breaking point. Just speculation on my part, mind you.

The actual USPAP issue that needed to be answered is in the form of two questions:

When does an assignment begin?

When does an assignment end?