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Subject To: Septic & Termite Certs ?

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Certified Residential Appraiser
State
California
Comment: An extraordinary assumption may be used in an assignment only if:

• it is required to properly develop credible opinions and conclusions;
• the appraiser has a reasonable basis for the extraordinary assumption;
• use of the extraordinary assumption results in a credible analysis; and
• the appraiser complies with the disclosure requirements set forth in USPAP for extraordinary
assumptions.
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Certified Residential Appraiser
State
California
What you're not getting is that you can just "EA away" liability. You can make assumptions (no obvious sign of septic failure when observed so it must be okay) but you will still have some liability. It's part of the business.

HUD and the GSE's don't want EA's used that way. They demand that EA's be subject to verification of the truth of the assumption.
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Certified Residential Appraiser
State
California
Then, in the addendum, Jim’s report states:

This appraisal involves the use of an extraordinary assumption. Specifically, appraiser assumes the home is structurally sound, and that the crack in the foundation is cosmetic and not structural in nature. The use of this extraordinary assumption might have affected the assignment results.

Jim has complied with his disclosure requirements under USPAP.
This passes USPAP.

HUD has additional assignment conditions that don't allow "just disclosing the EA."
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Certified Residential Appraiser
State
California
You go right ahead and put in your report, "no deficiencies were observed"....maybe also put "the roof will last for 100 years"...that's about as stupid.
I don't say that. I write;

"Scope of work clarifications, intended use and user(s), additional client requirements:

The intended use of the appraisal is solely to assist FHA in assessing the risk of the Property securing an FHA-insured Mortgage (24 CFR § 200.145(b)). FHA and the Mortgagee are identified as the intended users of this appraisal report. The FHA Appraiser does not guarantee that the Property is free from defects. The appraisal establishes the value of the Property for mortgage insurance purposes only. A Home Inspection by a licensed Home Inspector is always prudent.

The subject property meets HUD Minimum Property Standards (MPS) as described in HUD Handbook 4000.1. Water heater was seismically strapped; TPR Valve Discharge Tube installed; Smoke and CO alarms present."
 

RSW

Elite Member
Joined
Feb 18, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
This forum is becoming a waste of time because people like to comment without reading the posts, I described in a fair amount of detail the "ONE" time I conditioned due to septic... Unless I see an issue while flushing a toilet or looking out on the property where the cleanout and tank access are I use an EA to state that everything appears working... In my area for several months you will never see a leach field or cleanout or have any indicatino where the septic tank is because of snow cover, now what do you do?? Thanks for the jollies, it's been fun, I have too much work to do to continue deliberating opinions.

Oh and CANnative and JGrant spend alot of time on this forum, often posting remarks that appear to contradict the majority opinion, who cares, they can do what they want. Ultimately though, the amount of time they spend on here makes me think they aren't very busy, kind of telling in such a busy economy for appraisers...
I don't think the assumption you are making in that case is considered to be "extraordinary." I believe it would be an ordinary assumption and no comment would even be neccessary
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Certified Residential Appraiser
State
California
I had Cap'n Crunch and a banana for dinner tonight.
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Certified Residential Appraiser
State
California
Breakfast in the middle of the night is a lot of fun. Very New Yorkish. We used to do that when I owned a graphic arts business and we'd work all night.
 
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