Okay, now we're going to split a couple hairs here. There are two areas where this issue is specifically addressed. One is actually a part of the USPAP, and the other is not. First one is the USPAP reference from SR2-2:
Standards Rule 2-2(This Standards Rule contains binding requirements from which departure is not permitted.)
Each written real property appraisal report must be prepared under one of the following three options and prominently state which option is used: Self-Contained Appraisal Report, Summary Appraisal Report, or Restricted Use Appraisal Report.
Comment: When the intended users include parties other than the client, either a Self-Contained Appraisal Report or a Summary Appraisal Report must be provided. When the intended users do not include parties other than the client, a Restricted Use Appraisal Report may be provided.
The essential difference among these three options is in the content and level of information provided.
An appraiser must use care when characterizing the type of report and level of information communicated upon completion of an assignment. An appraiser may use any other label in addition to, but not in place of, the label set forth in this Standard for the type of report provided.
Then there's the reference from AO-11:
Prominent Statement of Option Used
The prominent statement of which option was used is a label that indicates to the reader how the appraisal is reported. Therefore, the statement should appear at or near the beginning of the report.
In narrative appraisal reports, the prominent statement of which report option is used could appear with the statement of the intended use of the appraisal because the decision on which report option to use is primarily related to the intended use of the appraisal. For added prominence, a statement of the report option used could also appear on any cover page or transmittal letter, if part of the report.
In form appraisal reports, the prominent statement of which report option is used could appear in the margin at the top of the front of the form. The level of detail of presentation of information suggested by the Uniform Residential Appraisal Report (URAR) form is consistent with the requirements for a Summary Appraisal Report.
Strictly speaking, SR2-2 does not actually require the label for report option to be in any particular position in a report; it only requires that it be made "prominently". The ASB's
recommendation in AO-16 is that it can be made on the margin at the top of the main form in a form report.
Now I could be wrong about this, but it is my understanding that a letter of transmittal attached to an appraisal report is just as much a part of that report as any other addendum or exhibit. If that is the case (and I'd have to look it up to be sure) then technically, your disclosures made in the letter of transmittal should be sufficient to qualify as 'prominent'. After all, it's not your fault if the client shuffles the document around in an order that is not conducive to their reading it.
But before you get on the phone and defend your position, I'd recommend you give some serious consideration to the AO. While not binding in and of itself, an appraiser would have to have a spectacular reason to not want to go along with the ASB's advice on these issues. Technically, you can probably argue that you are in compliance, but as a practical matter, I'd recommend you do it the ASB way. Not only that, but it wouldn't hurt to make the disclosures in more than one place - I do that. In your case, I don't think you have anything to actually worry about. However, if I were you I'd tweak my report formats to clear this up and call it a draw.
