Report states not USPAP compliant

[Wendy]

Wendy-

It sounds like the original appraiser is confused; and, you may want to double-check the "value" indicated to make sure it is "value" and not "replacement cost".........If the appraiser is calculating out only replacement cost, I would argue that such analysis isn't a "value" by itself, and would be considered an "appraisal service" and not an "appraisal".

It was the "value for insurance purposes" that struck me as I looked at it. Seems foolish to state it that way. Actually, I would avoid doing this at all, but that is just me.....

I think an "estimated replacement cost of improvements" would have been a smarter thing to report. Bring in the word "value" and you've appraised it.

 

[Wendy]

Problem - Non-Compliant Appraisal Report

Strategy - File a Complaint with the STATE (make them aware of the problem)

http://www4.myflorida.com/dbpr/re/burenf.shtml

Solution - Well, that is up to the State; let the wheels of justice grind away.

I'm not the client or even formally involved with this one. The client (my friend) is happy that he got a piece of paper that made the insurance company happy, so I don't think he is interested in a complaint.

Personally, I don't think the appraiser who wrote the report is out to commit any fraud or even a USPAP violation. I think he is just clueless and confused by USPAP. After all, a few pages of broiler plate and a cert would make it compliant. Perhaps a courtesy call is the better course of action right now. Now, if he was is jerk after that, file on I say!

 

[Brian Weaver]

USPAP is "you choose it...you use it"...meaning that if you're a licensed/certified appraiser...you've chosen to adhere to USPAP - always. There's no toggle switch for compliant/non-compliant.

 

[Couch Potato]

You're being too nice Wendy.

 

[Francois K. Gregoire]

I'm not the client or even formally involved with this one. The client (my friend) is happy that he got a piece of paper that made the insurance company happy, so I don't think he is interested in a complaint.

Personally, I don't think the appraiser who wrote the report is out to commit any fraud or even a USPAP violation. I think he is just clueless and confused by USPAP. After all, a few pages of broiler plate and a cert would make it compliant. Perhaps a courtesy call is the better course of action right now. Now, if he was is jerk after that, file on I say!

Wendy,

Your decision. Complaints submitted to the Division of Real Estate are resolved in a number of ways.

Some are determined to be legally sufficient; some are not. If not, they are dismissed.

If legally sufficient, they are investigated and submitted to the Probable Cause Panel of the FREAB. Some of those are dismissed. Some are dismissed with a letter of guidance. In some instances Probable Cause is found and an Administrative Complaint is filed.

After an Administrative Complaint is filed, the case is resolved in a number of ways. These include a Stipulated Agreement, an Informal Hearing or a Formal Hearing.

The range of penalties can include probation, reprimand, education, fines of up to $5,000 for each offense, suspension of up to 10 years or revocation.

If the Respondent decides on a Formal Hearing, the Hearing Officer (Administrative Law Judge) could submit a finding of no guilt.

Maybe folks with experience attending meetings of the FREAB would like to weigh in to make suggestions.

 

[Wendy]

I thought complaints could only be filed by a party to the appraisal. By party, I mean property owner, client/user, or reviewer.

I'm none of those. Furthermore, I am most certainly not competent to review the report as it is on a large apartment complex and I hold a residential certification only. I don't want to go there.

 

[Wendy]

You're being too nice Wendy.

Nahh, I'm just having a good day!

 

[Terrel L. Shields]

I believe in Arkansas the board has no authority if it is not a report to determine "Market Value". A registered appraiser can do this or any appraisal in any manner so long as it states the report was not prepared for a Federally Related Transaction. Anyone can put their "appraiser ID" on anything but there are steps that a judge would require before determining if the report is an "appraisal" or not. Further, my state has appraisers who adjust for insurance purposes and they are not required to be licensed as appraisers, perhaps as insurance agents, but not appraisers.
I would not waste my time with it. It obviously isn't involved in a loan transaction.

 

[Ms. Janet]

I don't know Terrell...
I wrote to the Appraisal Foundation several months ago when Citizens Insurance started asking for these appraisals. Their response was that the type of value is not an issue. If you are an appraiser, you must be competent to complete the assignment and in compliance with USPAP.

 

[Fred]

Suppose the person takes out the sentence saying the work is not in compliance with USPAP and replaces it with a cert page. Problem solved?