USPAP makes you responsible for the Scope of the Work, not the client. USPAP makes you responsible for the Scope of the Work per the Intended Use, and your scope of the work can not be so limited by the client as to make your opinions not credible for the INTENDED USE, not for the client's understanding, but for their INTENDED USE which is to lend money, that ultimately will be backed up by tax payers in some form or fashion, should the loan go belly up.
Wether the institution ensures the scope of the work is appropriate or not, it is still up to the APPRAISER to DETERMINE THE APPROPRIATE SCOPE OF THE WORK FOR THE INTENDED USE, not the institution.
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An institution should obtain an appraisal that is appropriate for the particular federally related transaction, considering the risk and complexity of the transaction. The level of detail should be sufficient for the institution to understand the appraiser's analysis and opinion of the property's market value. As provided by the USPAP Scope of Work Rule, appraisers are responsible for establishing the scope of work to be performed in rendering an opinion of the property's market value. An institution should ensure that the scope of work is appropriate for the assignment. The appraiser's scope of work should be consistent with the extent of the research and analyses employed for similar property types, market conditions, and transactions. Therefore, an institution should be cautious in limiting the scope of the appraiser's inspection, research, or other information used to determine the property's condition and relevant market factors, which could affect the credibility of the appraisal.
According to USPAP, appraisal reports must contain sufficient information to enable the intended user of the appraisal to understand the report properly. An institution should specify the use of an appraisal report option that is commensurate with the risk and complexity of the transaction. The appraisal report should contain sufficient disclosure of t
he nature and extent of inspection and research performed by the appraiser to verify the property's condition and support the appraiser's opinion of market value. (
See Appendix D,
Glossary of Terms, for the definition of appraisal report options.)
You can't verify, the condition with an EA.
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The IAEG regulation above does
not state that the appraiser must verify the property's condition via a personal inspection of the property by the appraiser...it simply requires the appraisal report to contain sufficient disclosure of the nature and extent of inspection and research performed by the appraiser to verify the property's condition.
In any case an extraordinary assumption is not required....if the appraiser is provided with an inspection report, including photos, of the subject property that is from a home inspector, an insurance inspector, an appraisal trainee or anyone else who is qualified to perform a property inspection, this is plenty enough for the appraiser to be able to verify the property's condition for a typical mortgage transaction, using an ordinary assumption that the information in the inspection report is correct unless the inspection report contains obvious errors. This is no different from assuming that the well water is potable, that the roof does not leak, etc. if the roof appears to be fine from the appraiser's view on the ground and their has been no test of the well water provided to the appraiser.
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