Does USPAP Mandate The Engagement Letter?

[3 Putt]

I think the letter of engagement requirement can be found in the Inter Agency guidelines.

 

[Howard Klahr]

found in the Inter Agency guidelines.

That addresses the lending institutions requirement to use engagement letters and applies only to regulated institutions covered under the interagency guidelines

 

[BRCJR]

B. Engagement Letters


An institution should use written engagement letters when ordering appraisals, particularly for large, complex, or out-of-area commercial real estate properties. An engagement letter facilitates communication with the appraiser and documents the expectations of each party to the appraisal assignment. In addition to the other information, the engagement letter will identify the intended use and user(s), as defined in USPAP. An engagement letter also may specify whether there are any legal or contractual restrictions on the sharing of the appraisal with other parties. An institution should include the engagement letter in its credit file. To avoid the appearance of any conflict of interest, appraisal or evaluation development work should not commence until the institution has selected and engaged a person for the assignment.