Form_USAP1404272015

[andrew81]

FAQ 27 is about the disclosure prior to agreeing to perform the assignment. the disclosure is still required in the report certification.

the requirement is to both disclose to the client, and in each subsequent report certification.

look at Conduct Section of the Ethics Rule line 208

If known prior to agreeing to perform an assignment, and/or if discovered at any time during the assignment,
an appraiser must disclose to the client, and in each subsequent report certification:
• any current or prospective interest in the subject property or parties involved; and
• any services regarding the subject property performed by the appraiser, as an appraiser or in any other
capacity, within the three-year period immediately preceding the agreement to perform the assignment.

 

[ZZGAMAZZ]

Ok I just took the update in November so went to look it up in my copy of USPAP and agree OP's questions are valid as it seems USPAP conflicts itself. First point #15 says disclosing service type is not confidential information. Next argument is whether a certification page is required and looking at #17 and #27 I don't even know anymore. If I am interpreting it wrong then please tell me which FAQ is right ...



View attachment 51779
Pretty clear - service type ok, but not confidential details.



View attachment 51780
Says signed certification is required for every report, but next one below says email is ok for disclosure.


View attachment 51781

Although your post certaintly isn't intended to clarify the issue, that you would take the time to provide what appears to be contradictory statements fuels the flames of discourse. Much appreciated.

 

[andrew81]

Except, there is no actual contradiction.

The requirement is (if known) to tell the client before agreeing to perform the assignment, and disclosure in the report certification, any prior services performed in the prior 3 years.

FAQ 17 discusses disclosure in the report certification
FAQ 27 discusses disclosure before agreeing to perform the assignment

they are two different questions addressing each of the two different disclosure requirements

Why then does the form advise the appraiser, if Prior Services have been conducted, to fill in the blank cell following the instructions that "Those services are described in the comments below."

The answer to the original post is:
There is a comment section on the USPAP form because any services, including services performed while not acting as an appraiser, must be disclosed. The comment section allows to disclose what that service is.

 

[spittman]

FAQ 27 is about the disclosure prior to agreeing to perform the assignment. the disclosure is still required in the report certification.

the requirement is to both disclose to the client, and in each subsequent report certification.

look at Conduct Section of the Ethics Rule line 208

If known prior to agreeing to perform an assignment, and/or if discovered at any time during the assignment,
an appraiser must disclose to the client, and in each subsequent report certification:
• any current or prospective interest in the subject property or parties involved; and
• any services regarding the subject property performed by the appraiser, as an appraiser or in any other
capacity, within the three-year period immediately preceding the agreement to perform the assignment.

Yes there is no question that it MUST be disclosed. Whether it be disclosed in a certification addendum or in an email is where the question resides.

 

[andrew81]

Yes there is no question that it MUST be disclosed. Whether it be disclosed in a certification addendum or in an email is where the question resides.

both

an appraiser must disclose to the client, and in each subsequent report certification

 

[DWiley]

Yes there is no question that it MUST be disclosed. Whether it be disclosed in a certification addendum or in an email is where the question resides.

Two disclosures are required. One must disclose up front (that is the one where email is ok) and one must disclose in the report. There is no contradiction in the FAQs, as one addresses the upfront disclosure

 

[DWiley]

The FAQ does not override USPAP. It explains the application of USPAP. You may disagree with that application, but, like it or not, the ASB is the party authorized to opine on such things. You are certainly free to put yours on a ”signed page” if you wish

The rule needs to be clarified/updated for the digital world. When I used a true digital signature on my reports, I was signing the entire report - every byte of it - not just a single page. The whole concept of a “page” is irrelevant in a digital report.

 

[TerryRohrer]

That's not what it says. It says "...no services" meaning; to include cutting the grass, painting, etc anything. That is my interpretation, that I think is pretty much the norm.

Danny is correct because your certifications can be several pages. with the Prior Services buried within the pages.

That USPAP Addendum is great because USPAP is a Living Document, meaning it can be and is Changed.

Well, if you read it, it actually says "no (or the specified) services." That means that you replace the "(specified services)" with, well, the specified services. If you choose to include cutting the grass, painting, or delivering the newspaper, well good on you. But if you have provided "brokerage services" or "consulting services," the information they are actually wanting to know about, you certainly should report that as well.

 

[Carnivore]

Well, if you read it, it actually says "no (or the specified) services." That means that you replace the "(specified services)" with, well, the specified services. If you choose to include cutting the grass, painting, or delivering the newspaper, well good on you. But if you have provided "brokerage services" or "consulting services," the information they are actually wanting to know about, you certainly should report that as well.

I don't know how to explain it, but it is way more than your examples. The origin of this(around 2010-2011 as I recall) was from the days of rampant Flipping that was not on the up and up. Often someone may have been the carpenter for the Flip, but also was an investor in the Flipping Scheme. Something like that.

The Three year rule is an off-shoot(expansion so to speak) of the Ethics Rule. I choose to lump any and all services. We individually can always add, but can't take away from USPAP minimums.

I get your point, but someone ask and I threw in my 2 cents.

 

[ZZGAMAZZ]

both

an appraiser must disclose to the client, and in each subsequent report certification

Andrew: Are you saying

both

an appraiser must disclose to the client, and in each subsequent report certification

Your response implies that prior involvement disclosure needs to be provided on every certification page in the same report. Seems redundant. I added a prior disclosure statement to the 1004 cert page but then deleted it when I started to use the signed USPAP addendum page.