Peeling Paint USPAP Question

[Donna Quixote]

I just was talking to a USPAP instructor who said that if any subject has peeling paint that we should be checking yes on the box for "Are there any physical deficiencies or adverse conditions that affect the livability, soundness or structural integrity of the property.

This is for ANY amount of peeling paint and when I questioned it his response is that if left to the elements forever, it would affect the structural integrity. Please weigh in on this, the majority of homes around here over 10 years old will have some areas of peeling paint and I have not been checking this for minor peeling paint issues.

 

[Mr Rex]

I believe Fannie addresses it here (sorta) 16,17,18:

https://www.efanniemae.com/sf/formsdocs/forms/pdf/sellingtrans/appraisalfaqs.pdf

 

[stefan olafson]

I personally don't think USPAP addresses peeling paint. Check out Standard 2-2(b) to see for yourself. Peeling paint could be a safety concern on homes built prior to 1978 according to FHA standards. Peeling paint may be a marketability issue if too bad, but don't feel USPAP addresses it.

 

[Bob Ipock]

USPAP instructors are not always right and should not hold themselves as being the know all, end all authority on every iss use that comes along. I personally don't see this as a USPAP issue....unless it was not explained in the report.

You can certainly photograph and disclose/explain the peeling paint. In the end it would be Fannie Mae's requirements and your appraisal board's opinion that matters.

You always ask an appraisal board investigator (send him/her pictures ) and ask for guidance. To disclose and explain is always a pro-active thing to do.

Interior or exterior or lead paint issues would also likely need to be considered.

 

[Donna Quixote]

Thanks for the link, I always have a detailed description under the condition of property that included a paragraph on the exterior, another on the interior and another on the basement and describe everything there, I was told it would be misleading to put that two basement window screens had peeling paint and not check the box on the front page and I personally think that two screens with peeling paint do not affect the soundness, livability or structural soundness and was told I was incorrect. Under this teacher's theory of "exposed to the elements forever" any house with paint would not pass the "forever" test.

I got put on the spot as wrong and I appreciate your input.

 

[Howard Klahr]

if left to the elements forever, it would affect the structural integrity.

Donna,

Just remember that based on this logic it would not matter if the paint was peeling or not. If left to the elements (i.e. not attended to), every component of the improvements would eventually affect the structural integrity. The basis of their argument is just absurd.