USPAP Minimum requirement to Inspect

[Restrain]

JoAnn, you can identify the extent of your inspection and the basis of your valuation in the 1004D. Same thing that is done with a 2055 Exterior. Are there liability issues? Yes, but there are liabilities in every report. As a practical issue, an exterior inspection from the public thoroughfare is considered acceptable.

 

[sputnam]

There is no USPAP requirement to ever inspect the subject property. You can, and should, include comments in your report clarifying the extent and nature of your property inspection. There are certifications in the forms you are reporting on and a USPAP requirement that your report not be misleading. If you sign a certification that says you inspected the property, it's a USPAP violation if you didn't. In other words, you aren't supposed to lie.

 

[mark hurlock]

What if the subject property was in perfect condition five months ago. If you do not observed the interior of the home today, how do you know if the subject is still in that same condition? So for your own protection and not create a situation that could cause you to lose your license; the best thing to do is to at least walk through the property making sure there hasn't been any thing major that took place during those five months.

Every report that is written or given orally, should be done in a manner so that you will be able to explain exactly how, why and what you did to your state board when a complaint is filed against you. The first time around with any assignment is to best time to prepare yourself for a hearing at your state board.

Always keep in mind--How am I going to explain this to the state board?

Jo Ann,

are you saying that it is an unreasonable assumption that a property would be in similar condition only 5 months from a prior inspection?

Also, are you saying that if a client accepts a reasonable assumption that the appraiser is now liable for the client's acceptance and reliance on that assumption?

 

[mark hurlock]

There is no USPAP requirement to ever inspect the subject property. You can, and should, include comments in your report clarifying the extent and nature of your property inspection.

USPAP states that the scope of work includes the extent to which a property is identified and inspected. This does NOT mean that you are not required to inspect a property. It means that USPAP does not determine that extent. The scope of work does. And if you don't inspect it, you must have a reasonable basis for making any assumption of it's condition.

The question in this particular case would be if it is reasonable to assume a property's condition is similar to what it was 5 months ago.

 

[sputnam]

USPAP states that the scope of work includes the extent to which a property is identified and inspected. This does NOT mean that you are not required to inspect a property. It means that USPAP does not determine that extent. The scope of work does. And if you don't inspect it, you must have a reasonable basis for making any assumption of it's condition.

The question in this particular case would be if it is reasonable to assume a property's condition is similar to what it was 5 months ago.

Please read carefully. No one said that USPAP allows you to do appraisals and never inspect or prohibits inspections. USPAP does not REQUIRE inspections in order to complete an appraisal. Of course, you must do what is required by the Scope of Work.

 

[mark hurlock]

Please read carefully. No one said that USPAP allows you to do appraisals and never inspect or prohibits inspections. USPAP does not REQUIRE inspections in order to complete an appraisal. Of course, you must do what is required by the Scope of Work.

what part don't you understand?

 

[Don Clark]

USPAP states that the scope of work includes the extent to which a property is identified and inspected. This does NOT mean that you are not required to inspect a property. It means that USPAP does not determine that extent. The scope of work does. And if you don't inspect it, you must have a reasonable basis for making any assumption of it's condition.

The question in this particular case would be if it is reasonable to assume a property's condition is similar to what it was 5 months ago.

Mark,

There is NO USPAP requirement to ever inspect a property. If that were the case one could not do a desk top appraisal in which no inspection of the subject or comparables ever occurs. That is a scope of work issue. Unless the scope of work requires some type of inspection, interior, exterior, from the street, room by room, then USPAP does not dictate that an inspection be done.

 

[mark hurlock]

Mark,

There is NO USPAP requirement to ever inspect a property. If that were the case one could not do a desk top appraisal in which no inspection of the subject or comparables ever occurs. That is a scope of work issue. Unless the scope of work requires some type of inspection, interior, exterior, from the street, room by room, then USPAP does not dictate that an inspection be done.

don,
if the scope of work determined that an on site inspection of the property was necessary to develop a credible and reliable opinion of the subject characteristics, would USPAP “require” an inspection?

 

[Don Clark]

don,
if the scope of work determined that an on site inspection of the property was necessary to develop a credible and reliable opinion of the subject characteristics, would USPAP “require” an inspection?

Technically, yes since the Scope of Work is part of USPAP. But, lacking an agreement between the client and the appraiser..."at the time of the assignment" as stated in the scope of work rule, then there would be no requirement to inspect. It is the scope of work rule, and an agreement with the client that determines if, and to what extent a property would need to be inspected. And, the scope of work is an ongoing process. If the scope of work required an appraiser to inspect 12 units in a commercial office building, but the appraiser could only inspect 9 of the 12, then the appraiser and the client could agree to modify the ongoing scope of work. Same would be true if it were a residential property where access was denied to one of the 2 units in a duplex. Again, the scope of work rule would dictate the extent of inspection.

 

[mark hurlock]

Technically, yes since the Scope of Work is part of USPAP. But, lacking an agreement between the client and the appraiser..."at the time of the assignment" as stated in the scope of work rule, then there would be no requirement to inspect. It is the scope of work rule, and an agreement with the client that determines if, and to what extent a property would need to be inspected. And, the scope of work is an ongoing process. If the scope of work required an appraiser to inspect 12 units in a commercial office building, but the appraiser could only inspect 9 of the 12, then the appraiser and the client could agree to modify the ongoing scope of work. Same would be true if it were a residential property where access was denied to one of the 2 units in a duplex. Again, the scope of work rule would dictate the extent of inspection.

Technically yes?????

LOL.

To say that USPAP does not require an inspection is not the same as saying it does not dictate the level and extent of inspection.

If you understand it differently, please correct me.