USPAP identification 2070 and 2075

[jwand125]

I got my first order for a 2075 how do you properly identify USPAP
limited

 

[rtubbs]

USPAP does not apply to the 2070 and 2075s. They are not appraisals.

 

[Jo Ann Meyer Stratton]

I seem to be on a roll offering templates. I attach a USPAP Compliance addendum to my 2070--very specifically spelling out that is is not an appraisal and as an appraiser I did not offer or indicate an opinion of value. It is restating the obvious, but the more disclaimers the better is my opinion. So if you are interested I could email you my sample template, which could be revised to fit the 2075. [email protected]

 

[bradellis]

jwand125,

Posters are quire correct, with this one exception:

What you are doing falls under valuation services (not appraisal practice). Therefore, while no "standards" apply, the ethics and competency requirements do remain.

Brad Ellis, IFA, RAA

 

[Red Blumenstock]

No offense intended Ron & Joanne, but the 2070 and 2075 are considered an appraisal in at least one state. It depends on the definition of appraisal. The PA Legislature adopted the USPAP definition in 1991 and has not seen fit to revisit and change the definition. There the definition is, "A written analysis, opinion or conclusion relating to the nature, quality, value or utility of special interests in, or aspects of, identified real property, for or in expectation of compensation".

Under that definition, the PA State Board has determined that while the 2070 & 2075 are not appraisals under the USPAP they are appraisals by the PA Derfinition and the USPAP applies. This is a somewhat ridiculous situation, and as one person stated, "Under this definition if you are a State Certified Appraiser and say 'this house stinks' you have just done an appraisal." The problem is attempting to get the State Legisdlature to act.

Red

 

[Mountain Man]

:roll: Sheesh, that would make it hard to be able to tell your neighbor that they need to cut the grass. Guess you better get photos and develop a work file before mentioning that. :lol:

 

[Red Blumenstock]

Yeah, but in truth, there are two saving graces in the law. An appraisal must be in writing and it must be accomplished "for or in expectation of compensation". That kind of makes an oral report not an appraisal, and even if you put it in writing but are not expecting a fee, it still is not an appraisal. Huh???

Red

 

[Debra]

Hello!

I got my first request for a 2075 today. What other forms do you include with it and what % of a normal appraisal fee do you charge for these? Do you include a legal? Thanks! :roll:

 

[Ross (CO)]

Debra, A good way to find what you need to include is to ask them what their underwriter requests. They are about as simple as a "report" can get. One might be asked for the 1-pager, a map for general location of property, and a subject photo page with two front shots of corner approaching and corner driving away and the street setting. Do not fall into any persuasion to ever refer to this assignment as an appraisal (you did in your posting) , as it is not. It may become paramount that you reinforce that specific notion to the processor or LO with whom you may have a phone conversation at that time. Very likely they will say the word "appraisal" several times in your conversation and your reply needs to be clear that you will NOT be making any selling price data checking of other "comps" in the area, as it does not call for that.....you know, such that you might toss out some verbal "ballpark" estimate next time you chat with them. If this client rep speaks about THEIR estimate of a value it is not your duty to confirm that, and tell them so. As to your fee....providing you are not driving some 100 miles to do this, and that it is right there in town, your fee might be modest. There is not a whole lot out there which we might do for less than 100. It's up to you though. When you say here ..."do you include a legal" just what do you mean ? Perhaps you mean some sort of USPAP Compliance or USPAP Identification form to identify users, purpose, or the general limitations to any information the form requires. I would always want to know just what purpose is being satisfied with one's "report". I think the last two line-fields in middle of form are worthy of your extra effort to CYA. The lines of the form may suffice for you to say what needs to be said. A simple X'ing of the "NO" box falls short. You'll note, the invitation to describe follows only a "Yes" answer you might provide. Perhaps the word which is there to CYA is the word "apparent" in each of those questions. That word could tip-toe you over an invisible line.... like defining what the meaning of "is" is. Good luck with it, no sweat, and sprinkle a little CYA into it somewhere.

 

[Debra]

Hello!

By legal I meant a deed. Thanks very much for the reply!!!