USPAP question

[Geoff Hatcher]

I am completing some retrospective reviews for litigation purposes. I was verbally engaged in December of '07 and completed an exterior inspection of the properties in question in December of '07. Putting together a formal engagement and want an opinion.

In my scope of working I am spelling out the applicable USPAP edition, reports prior to July 1, 2006 reviewed under USPAP 2005, reports prepaired after July 1, 2006 under USPAP 2006. I would also like to clarify the USPAP edition I am complying with. Should I cite 2007, the date of the verbal engagement, although the formal engagement will be dated January '08; or not to confuse things, cite 2008 and drive-by the properties again and change my effective date?

 

[stefan olafson]

I believe you go by the effective date of the appraisal. So, given you inspected the property in 2007 the correct USPAP to cite is the 2006 version. The 2008 version did not become enforceable until 1/1/2008.

 

[Mike Kennedy]

2008 !!!!!! the applicable version is based on the Reporting not the Effective Date.

 

[Joker]

Ditto to Kennedy.

 

[stefan olafson]

Hmmm, I guess one of my USPAP instructors mis-spoke! I was told the report is based on the effective date of the appraisal?

I stand corrected....

 

[Geoff Hatcher]

I am reviewing the reports to the applicable standards at the time. My question concering my review report. Should it be based on my effective date of review? date of verbal engagement? date of written engagement? or date the reviews are signed? it's either 2007 or 2008

 

[Brad Ellis]

Geoff,

Interesting question. Here is my take on it:

Obviously the original appraiser should be held to the applicable standards in place at the time. For example, it would be appropriate to cite say the failure to identify a limited assignment from a complete assignment if that were in place at the time. It would not be appropriate if such a requirement were added after the appraisal's effective date.

Your report however should be under the prevailing standards in place when you accepted the assignment. If changes occured since them you can easily discuss that in your comment addendum.

I know of one case in which a state board tried to santion an appraiser based upon the current USPAP when the report was done under a prior version of USPAP and that appraiser's lawyer got the complaint tossed out.

Brad

 

[Fred]

I know of one case in which a state board tried to santion an appraiser based upon the current USPAP when the report was done under a prior version of USPAP and that appraiser's lawyer got the complaint tossed out.

Brad

But the board tried.

 

[Mike Kennedy]

Geoff - the date the reviews are signed.

 

[Geoff Hatcher]

OK, thank you