Draft Reports

[Lee Lansford]

IMO, a report is not completed until the appraiser has signed off on it. I don't see anything in USPAP that would prevent an appraiser choosing to provide an interim product to his client before the formal completion of the report. If the appraiser chooses to label this interim product "draft", it doesn't change anything.

At least in Illinois, a licensed appraiser--who is subject to the USPAP--and who communicates an opinion of value, has communicated an appraisal.

This topic who be covered at the upcoming ICAP seminars (Naperville and Springfield). Though relevant to all licensed appraisers, there will be an element of the presentation that will be specific to Cert Gen appraisers who believe that their "draft", communicated to the client with a "preliminary"--or whatever the term du jour might be--opinion of value is somehow not an appraisal. The short answer: the "preliminary" opinion = opinion of value = appraisal.

 

[Lee Lansford]

...
Legit or not under USPAP?

When an appraiser, who is subject to the USPAP, communicates an opinion of value the appraiser has communicated an appraisal that is subject to the USPAP.

 

[The Warrior Monk]

PL does not have it right in NC or apparently WI. I've seen the NC decision and there, an unsigned report is considered a violation of USPAP.

PL stated:

IMO, a report is not completed until the appraiser has signed off on it. I don't see anything in USPAP that would prevent an appraiser choosing to provide an interim product to his client before the formal completion of the report. If the appraiser chooses to label this interim product "draft", it doesn't change anything.

PL never said that the report is unsigned (or more specifically, signed certification). If fact, he stated the opposite.

FWIW, reporting of the appraisal could be an issue in several states, in particular the oral appraisal report.

 

[Fred]

What is a "draft" report?

Either developing and reporting are up to standard or they aren't - and those vary independently of whether the word "draft" is used. I think David said the same thing a different way. It's like everything else. You can describe a reasonable set of actions and associate the label "draft" with those actions; or you can describe an unreasonable set of actions and associate the label "draft" with those actions.

I think what the state board are trying to say, in their own "articulate" way, or what what they should be trying to say, is that use of words like "draft" do not a create departure mechanism that voids any relevant USPAP minimum.

I've seen the NC decision and there, an unsigned report is considered a violation of USPAP.

Isn't that more or less what USPAP says(?) - not that one signs "the report" - but, a written report must include a certification and the certification must be signed. That may sound like nitpicking, but if you sign it someplace else, you can't easily claim to have a signed certification.

 

[Ken B]

At what point does a collection of papers which contain most of the elements required in an appraisal report become an appraisal report?

 

[Caligirl]

David said: PL never said that the report is unsigned (or more specifically, signed certification).

IMO, a report is not completed until the appraiser has signed off on it. I don't see anything in USPAP that would prevent an appraiser choosing to provide an interim product to his client before the formal completion of the report.

I am reading the above this way:

In PL's opinion, a report is not complete without a signature.

He doesn't see anything in USPAP that prevents an appraiser from providing an 'incomplete' (interim) appraisal to a client. PL does not specify what he means by 'incomplete' or 'interim': Complete and unsigned? Only half done? Missing one section of analysis?

Then read the link to the NC board's decision. Again, each individual state has the final say.

 

[Fred]

PL,
I think the problem with your "interim products" argument is that all products could be considered "interim." You can always appraise the same property for the same client again, or engage in further consultation about the same property. And what you thought was "final" today, turns out to be "interim" next week - even if you already called it "final." An "interim" loophole would void enough of USPAP to make it disappear.

 

[Caligirl]

At what point does a collection of papers which contain most of the elements required in an appraisal report become an appraisal report?

See Lee Lansford's post #11.

 

[Mr Rex]

At what point does a collection of papers which contain most of the elements required in an appraisal report become an appraisal report?

When it provides a value, an indication or range of values etc to the client.

 

[PropertyEconomics]

Assuming no issues with USPAP .. what purpose would a "draft" report serve?