Report states not USPAP compliant

[Wendy]

What say ye o' gurus of the USPAP?

I have a friend who owns several apartment properties. His insurance is requiring appraisals - which he got. He showed me one this weekend.

It was about 4 pages - non-form, letter paper, including cover. I would not go so far as to call it a narrative. It included a brief property description, front photo, identified appraiser, client, intended use and sow. Stated a value that was for insurance purposes and included a m&s worksheet. That is all. Fee was $475 (not that it matters, but I know you're curious).

It also stated that it was not a USPAP compliant report and had no signed certification.
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My limited grasp of USPAP tells me that any value reported while wearing your appraiser cap is subject to USPAP. Am I wrong?

 

[Bob Ipock]

Depends on what your state law says.

 

[Francois K. Gregoire]

What say ye o' gurus of the USPAP?

I have a friend who owns several apartment properties. His insurance is requiring appraisals - which he got. He showed me one this weekend.

It was about 4 pages - non-form, letter paper, including cover. I would not go so far as to call it a narrative. It included a brief property description, front photo, identified appraiser, client, intended use and sow. Stated a value that was for insurance purposes and included a m&s worksheet. That is all. Fee was $475 (not that it matters, but I know you're curious).

It also stated that it was not a USPAP compliant report and had no signed certification.
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My limited grasp of USPAP tells me that any value reported while wearing your appraiser cap is subject to USPAP. Am I wrong?

Wendy,

In Florida, neither Appraisers nor Real Estate Brokers have the right to "opt out" of adhering to the USPAP when producing a document called an appraisal report.

 

[The Bob]

That most definitely is covered under USPAP. Even when it is non-valuation assignment not subject to USPAP, he would still have to comply with the Ethics clause.

 

[Mountain Man]

Wendy, In Florida, neither Appraisers nor Real Estate Brokers have the right to "opt out" of adhering to the USPAP when producing a document called an appraisal report.

Ditto for GA, it's been addopted as law.

 

[Otis Key]

It included a brief property description, front photo, identified appraiser, client, intended use and sow. Stated a value that was for insurance purposes and included a m&s worksheet.
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My limited grasp of USPAP tells me that any value reported while wearing your appraiser cap is subject to USPAP. Am I wrong?

Bold my add

The bolded section is the "catch 22". It was prepared by an "appraiser" and is perceived to be an appraisal, then it is an appraisal and it, as well as the person who performed it, must adhere to USPAP. Next stop is the state board.

 

[Wendy]

Wendy,

In Florida, neither Appraisers nor Real Estate Brokers have the right to "opt out" of adhering to the USPAP when producing a document called an appraisal report.

Hmmm... I can not remember if it specifically said "appraisal report" on it any where. The appraiser did cite their license information which would imply that they were working as an appraiser.

 

[Bob Ipock]

I don't disagree with that Jim.....but only the STATES have USPAP police and only the STATES can enforce USPAP.

USPAP is unenforceble until the STATES choose to enforce it after adpopting it under state law.

USPAP does not establish who or which assignments must comply. Neither The Appraisal Foundation nor its Appraisal Standards Board is a government entity with the power to make, judge, or enforce law. Compliance with USPAP is required when either the service or the appraiser is obligated to comply by law or regulation, or by agreement with the client or intended users. When not obligated, individuals may still choose to comply.



USPAP addresses the ethical and performance obligations of appraisers through DEFINITIONS, Rules, Standards, Standards Rules, and Statements.

 

[hastalavista]

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 was engaged with the understanding by the client that he/she would be acting as an appraiser, then then the appraiser must be in compliance with USPAP.
Since the insurance company "required an appraisal", it is safe to assume that the appraiser was hired because of this requirement: USPAP applies.

If there is value included in the assignment, then some of the Standard Rules may not apply (like 1 & #2). But USPAP still applies.

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".

 

[Francois K. Gregoire]

Problem - Work Towards Solution

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.