Is reviewing appraisals in another state illegal?

[JTRock]

If an appraiser performs an appraisal review on a property that is located in another state in which they are not licensed, is this compliant with the laws that the states have established? I don't quite see how this would be USPAP compliant. How could an appraiser in New York perform a review on a property in Florida and consider themself competent within that market? I perform reviews sometimes on properties that are within my market area but would be foolish to think I could do so on properties in another state! It seems like there are so many reviews being done out of state now so am I missing something? Have appraisers been sued for this?

 

[Michael S]

New Mexico has a law that requires anyone performing an appraisal review of real property in New Mexico, must be licensed in New Mexico. They also have to have the equivalent or higher license to the original appraiser. So if I CG or CR performs the report, a licensed appraiser can't perform the review.

 

[Smokey Bear]

Depends on the scope of work.

 

[PropertyEconomics]

The question is what is the Scope of Work .. if it is for a review for value you may well be correct ... if it is a review for USPAP or Client compliance .. there may be no reason it cannot be done.

Scope of work in thse assignments is the key.

 

[J Grant]

Re, refering to the SOW, such as only checking to see if the appaisal is USPAP compliant...that is correct. However USPAP states that an appraisal should not provide a misleading value. Thus the question, how can an out of state appraiser with limited data and zero market area knowledge determine if a value was misleading?
Does an appraisal only have to be USPAP compliant in some areas, but is allowed to not be USPAP compliant in others?

For example, an out of state review might find USPAP not violated in that former sales were reported and other apsects of USPAP fulfilled, but the reviewer has no idea if the value or market data was misleading...(Since they have limited data and do not know the area)

Therefore, how can a reviewer declare the entire report USPAP compliant, when they frankly have no idea if the value/market conditions are misleading?

 

[NorthTexValuation]

New Mexico has a law that requires anyone performing an appraisal review of real property in New Mexico, must be licensed in New Mexico. They also have to have the equivalent or higher license to the original appraiser. So if I CG or CR performs the report, a licensed appraiser can't perform the review.

Must have been a CG that helped write the law because it is asinine to believe that an experienced CR would not be qualified to review a RESIDENTIAL appraisal performed by a CG.

I know a lot of CRs that have performed thousands of residential appraisals and reviews over decades and some CGs that might do 5-10 1004s a year.

Who do you think has the most "experience" and "qualifications" to review a residential report no matter the license/certification level of the original appraiser?

 

[PropertyEconomics]

Re, refering to the SOW, such as only checking to see if the appaisal is USPAP compliant...that is correct. However USPAP states that an appraisal should not provide a misleading value. Thus the question, how can an out of state appraiser with limited data and zero market area knowledge determine if a value was misleading?
Does an appraisal only have to be USPAP compliant in some areas, but is allowed to not be USPAP compliant in others?

For example, an out of state review might find USPAP not violated in that former sales were reported and other apsects of USPAP fulfilled, but the reviewer has no idea if the value or market data was misleading...(Since they have limited data and do not know the area)

Therefore, how can a reviewer declare the entire report USPAP compliant, when they frankly have no idea if the value/market conditions are misleading?

They are called extraordinary assumptions ... completely allowable by USPAP during the course of both appraisal and review.

 

[PropertyEconomics]

Must have been a CG that helped write the law because it is asinine to believe that an experienced CR would not be qualified to review a RESIDENTIAL appraisal performed by a CG.

I know a lot of CRs that have performed thousands of residential appraisals and reviews over decades and some CGs that might do 5-10 1004s a year.

Who do you think has the most "experience" and "qualifications" to review a residential report no matter the license/certification level of the original appraiser?

I agree with you and to answer your statement .. yes it was a CG that primarily wrote the law ... one who does mostly single family residential work but occassionally does smaller commercial properties as well.

Yes you are correct in your statement.

 

[Meandering]

PA law is if you are performing under Standard 3, concerning real property in PA you need a PA Certification. It does not distinguish between USPAP compliance and appropriate value opinion.

 

[Terrel L. Shields]

Administrative review is normally outside the view of our state. However, if a non-administrative review is submitted with a complaint and the reviewer is out of state, then it is my understanding that the reviewer will get a letter of reprimand from the board if not duly licensed here. And if they are, the review gets the fine tooth comb.