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No Good Deed

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StephHigdem

Member
Joined
Jan 5, 2004
Professional Status
Certified Residential Appraiser
State
Idaho
Two years ago, a friend asked me to appraise his recently deceased Mom's house; as is and as repaired. I did, kept a work file, gave him the values via email. Fast forward to now, I saw the house again last week, renovated, and gave him the current market value; again, kept a work file, gave him a verbal value and documented the conversation. Here's the rub, he just told me one of his siblings has hired an attorney, and he need's full reports of both appraisals. How do I appropriately handle documenting in the report that it is being written two years after the actual appraisal?
 

Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
Work file(s) should contain sufficient data, support, sources, photos, muni data, copies of Assessor/MLS reports etc. to enable production of a "full" report.

  1. [PDF]
    USPAP and the workfile - American Society of ...
    www.appraisers.org/docs/default-source/discipline_rp/beaumon...
    File format:Adobe PDF
    The “Record Keeping Rule” in USPAP states that the workfile must include: All other data ... If you stated in your appraisal that you reviewed the deed, you must..
from the link above (if it doesn't open for you) IF the link works - save to desktop then read from there:

"The “Record Keeping Rule” in USPAP states that the workfile must include:
All other data, information, and documentation necessary to support the
appraiser’s opinions and conclusions and to show compliance with
USPAP, or references to the location(s) of such other documentation.
  1. ..it isn’t always necessary for the workfile to include copies of all the documentation used, however, did you know that it must be retrievable by the appraiser throughout the workfile retention period? Information obtained on the internet is always changing.
    Internet links to what you may have relied upon and noted in your workfile may not be active links when and if you are called upon to reproduce the data.
    Did you also know that whatever is “stated” in your appraisal must have support for that statement in your workfile? If you stated in your appraisal that you reviewed the deed, you must have a copy of that deed in the workfile, or a reference notation in the file to the location of the document. You should be able to retrieve a copy of it if requested to do so.
    If you state in your appraisal that you used a paired sale analysis for your adjustments, you must have that analysis in your workfile or have the ability to retrieve a copy of the analysis if requested to do so.
    If you state in your appraisal that you reviewed the contract of sale, have a copy of the contract in your workfile or a reference notation to the location of the contract.
    Did you state that you used the allocation method to determine the land value or state in the appraisal report the method that was used to develop your cap rate? You should have the spreadsheet analysis in the file to back up these statements. Your workfile should be able to support the factual data, reasoning and conclusions stated in your appraisal.
    The “Record Keeping Rule” also states that the workfile must include:
    True copies of any written reports, documented on any type of media
    A true copy is a replica of the report that was transmitted to the client. A photocopy or digital copy of the report will also satisfy this requirement. However, did you also realize that a “true copy” includes all addenda pages as well as all signatures on the certification page?
  2. Remember also that the Record Keeping Rule in USPAP states that:
    A workfile must be in existence prior to the issuance of any report.
    Adding missing information to the file after the report has been delivered to the client is a violation of the record keeping rule. Some printed documents display the date the document was printed on the bottom of the page...not a good thing to have in your workfile if the date exceeds the date the report was delivered to your client. It could suggest that documentation was added to the workfile after the report was delivered. If a client asks you to purge an appraisal report within the required retention holding period, that is “willfully and knowingly” violating the requirements of the record keeping rule…which is also a violation of the Conduct section of the Ethics Rule in USPAP.
  3. Remember, the Record Keeping Rule applies to appraisal, appraisal review or appraisal consulting assignments."
 
Last edited:

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
279. ORAL APPRAISAL REPORTING REQUIREMENTS

Question: A client has asked me to complete an appraisal of a property, but she does not want me to prepare a written report. Instead, she has asked that I communicate the results of my appraisal orally. Is this allowed under USPAP? If so, what requirements would I have to follow?

Response: Yes; USPAP allows an appraiser to provide an oral report. Standards Rules 2-4, 3-7, 8-4, and 10-4 address the reporting requirements for oral reports. However, every appraisal or appraisal review report must be clearly and accurately set forth in a manner that is not misleading and contain sufficient information to enable intended users to understand the report properly. Thus, the responsibility is on the appraiser to not limit the reporting to such a degree that it would be misleading.

The RECORD KEEPING RULE also has requirements related to oral appraisal reports; specifically the requirement to include in the appraiser’s workfile:

summaries of all oral reports or testimony, or a transcript of testimony, including the appraiser’s signed and dated certification.

In addition, the Comment to in the RECORD KEEPING RULE states:

A workfile must be in existence prior to the issuance of any report. A written summary of an oral report must be added to the workfile within a reasonable time after the issuance of the oral report.

280. WORKFILE CONTENTS FOR AN ORAL REPORT

Question: What must be in the workfile when an appraiser issues an oral report? Response: The RECORD KEEPING RULE requires that the workfile include:

x the name of the client and the identity, by name or type, of any other intended users;

x true copies of any written reports, documented on any type of media;

x summaries of all oral reports or testimony, or a transcript of testimony,

including the appraiser’s signed and dated certification;

x all other data, information, and documentation necessary to support the appraiser’s opinions and conclusions and to show compliance with USPAP, this Rule and all other applicable Standards, or references to the location(s) of such other documentation; and

x a workfile in support of a Restricted Appraisal Report must be sufficient for the appraiser to produce an Appraisal Report. (Bold added for emphasis)
 

Mike Kennedy

Elite Member
Joined
Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
Two elements in the OP :)

"I did, kept a work file, gave him the values via email." (one work file)

"I saw the house again last week, renovated, and gave him the current market value; again, kept a work file, gave him a verbal value" (second work file)

See Work File requirements in prior post which apply to both assignments.
 

StephHigdem

Member
Joined
Jan 5, 2004
Professional Status
Certified Residential Appraiser
State
Idaho
I understand the USPAP requirements, and I'm confident in my work file containing the information. That's not my question. My question is
How do I appropriately handle documenting, knowing an attorney will be reading it, in the report that it is being written two years after the actual appraisal?
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
It was retrospective, so state. Dates and any extra ordinary assumptions.
 

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
How do I appropriately handle documenting, knowing an attorney will be reading it, in the report that it is being written two years after the actual appraisal?

You best make sure you are clear about the written report being generated from your work file from summary information, in the report itself. Signing the written report with today's day would be indicting it was two years later.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
Two years ago, a friend asked me to appraise his recently deceased Mom's house; as is and as repaired. I did, kept a work file, gave him the values via email. Fast forward to now, I saw the house again last week, renovated, and gave him the current market value; again, kept a work file, gave him a verbal value and documented the conversation. Here's the rub, he just told me one of his siblings has hired an attorney, and he need's full reports of both appraisals. How do I appropriately handle documenting in the report that it is being written two years after the actual appraisal?

Imo You gave a restricted (brief email ) reports and kept a work file, which is allowed by USPAP. So those reports are what they are.

If his sister's attorneys needs two written reports retrospective to the 2 years back dates, imo that is a new assignment ( 2 new assignments, if 2 reports.) They are retrospective for a new client (the attorney ) , new intended use ( whatever that is ), and a new format other than the restricted report (email ). They are new assignments, even if your value opinion is the same as the original.

Is this a referral order for 2 appraisals they plan to use for estate or value purposes, or an adversarial use by this attorney ?
 
Last edited:

StephHigdem

Member
Joined
Jan 5, 2004
Professional Status
Certified Residential Appraiser
State
Idaho
I suspect this is adversarial, the sister is questioning the value(s) of 2 years ago.
Thanks all, the path forward is much more clear
 
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