USPAP 3 year disclosure question

[netappr]

This has probably already been discused elsewhere but I didn't see it.

Received an order from equifax settlement services, after I received the order I informed them I had done an appraisal on the property within the past 3 years and the said to proceed.

I placed in the report that I completed an appraisal on the subject within the past 3 years.

They are now coming back and stated that they are requiring the date of the previous appraisal, purpose of the previous appraisal and comment on the upgrades / changes to the property since the previous appraisal.

I am only required to state that I have completed an appraisal on the property within the past 3 years correct?

 

[kristin0731]

I believe you are correct. You are not obligated to tell them anything else. You just have to disclose that you have provided a service (must disclose the type of service) within the past 3 years. I think you would have to consult with your prior client before giving that kind of information. This may be a confidentiality issue.

Your statement should be in your certificate and according to the Appraisal Institute and the FDOT you only have to include the statement if you actually have done the work but some people opt to have it in there either way to CYA....

I looked in the Q&A section of USPAP and I don't see any answers related to this question. Go with your gut - and get money up front!

 

[CANative]

Well it finally arrived. The reason the lenders strong-armed TAF into this stupid USPAP change.

 

[Mike Kennedy]

ETHICS RULE
USPAP 2010-2011 Edition
"If known prior to accepting an assignment, and/or if discovered at any time during the assignment, an appraiser must disclose to the client, and in the subsequent report certification:​

. any current or prospective interest in the subject property or parties involved; and​

. any services regarding the subject property performed by the appraiser within the three year period immediately preceding acceptance of the assignment, as an appraiser or in any other capacity.

Comment: Disclosing the fact that the appraiser has previously appraised the property is permitted except in the case when an appraiser has agreed with the client to keep the mere occurrence of a prior assignment confidential. If an appraiser has agreed with a client not to disclose that he or she has appraised a property, the appraiser must decline all subsequent assignments that fall within thethree year period."

USPAP Definitions:

CONFIDENTIAL INFORMATION:

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information that is either:​

* identified by the client as confidential when providing it to an appraiser and that is not available from any other source; or​

*classified as confidential or private by applicable law or regulation*.​

*NOTICE: For example, pursuant to the passage of the Gramm-Leach-Bliley Act in November 1999, some public agencies have adopted privacy regulations that affect appraisers. As a result, the Federal Trade Commission issued a rule focused on the protection of “non-public personal information” provided by consumers to those involved in financial activities “found to be closely related to banking or usual in connection with the transaction of banking.” These activities have been deemed to include “appraising real or personal property.” (Quotations are from the Federal Trade Commission, Privacy of Consumer Financial Information;
Final Rule, 16 CFR Part 313.)

Also USPAP FAQ 2010

106. CLIENT APPROVAL FOR FUTURE ASSIGNMENTS​

Question: Some of my clients include a condition in engagement correspondence that addresses future assignments for the same subject property. Specifically, my acceptance of the assignment requires that I agree to obtain client approval before I accept future assignments related to the subject from another party.

Advisory Opinion 27, Appraising the Same Property for a New Client states that USPAP does not require a release to accept the new assignment. Can I accept assignments where the client requires a release for future assignments related to the subject?​

Response:​

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Yes. Appraisers are often subject to agreements that exceed the requirements of USPAP. These additional client requirements are permissible so long as they do not conflict with the requirements of USPAP. Although USPAP does not require obtaining approval from a prior client before accepting an assignment to appraise the same property for a new client, a client can establish such a requirement.​

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side note:

SMT-5 Confidentiality Section of the ETHICS RULE - Retired ........................................................... U-88​

 

[james stephens]

I typically provide the type and date of the prior services. I would consider the purpose of the prior appraisal to be confidential information and would not provide it to them unless your previous Client gives you authorization. They can get that information from the owner. Same goes for upgrades since prior appraisal. It would seem that you would have to to rely upon confidential information in order to satisfy that request.

 

[Couch Potato]

side note:

SMT-5 Confidentiality Section of the ETHICS RULE - Retired ........................................................... U-88​

Retired back on July 1, 2001 as I recall. :new_all_coholic:

 

[Tony V]

Question...

kristin0731 wrote ... You just have to disclose that you have provided a service (must disclose the type of service) within the past 3 years...

Yet, from what I am reading in M K's post, I do not see where it states that you have to disclose what type of service one performed at the subject...

Where am I missing the must disclose the type of service?

 

[Couch Potato]

It says disclose, "any services." It does not say disclose, "whether any services were performed."

 

[Tony V]

It says disclose, "any services." It does not say disclose, "whether any services were performed."

Got it....Thanks...

 

[james stephens]

Question...

kristin0731 wrote ... You just have to disclose that you have provided a service (must disclose the type of service) within the past 3 years...

Yet, from what I am reading in M K's post, I do not see where it states that you have to disclose what type of service one performed at the subject...

Where am I missing the must disclose the type of service?

Only in USPAP January Q&A's as far as I know...

2010-02[FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]: ETHICS RULE – CONDUCT [/FONT][/FONT]
[FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]Disclosure of any prior services regarding the subject property, when an appraiser has performed services other than appraisal practice. [/FONT]
[FONT=Times New Roman,Times New Roman]Question: [/FONT]
[/FONT][FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]If I have performed a service other than appraisal practice, such as acting as a general contractor within the prior three years, do I have to describe the specific service or merely state a service was performed? [/FONT]
[/FONT][FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]Response: [/FONT][/FONT][FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]You must disclose to the client the type of prior service you performed regarding the property and this must be included in the report certification. This disclosure is not limited to services provided as part of appraisal practice. Therefore, [/FONT][/FONT][FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]each service [/FONT][/FONT][FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]must be disclosed to the client and appear in the certification. [/FONT]
[/FONT]