USPAP violations

[ctapraser]

Not in Virginia. The Virginia Real Estate Appraiser Board has the right and duty to determine USPAP violations and violations of state regulations under the Administrative Processes Act. But, anyone can file with the Richmond, Virginia Circuit Court and appeal the decesion if theydo so within 30 days. If no appeal, then the boards decision stands. North Carolina has similar authority, and a similar appeal process. It is likely, and I have looked into this, that very few of the boards decisions are reveresed as long as the board follows the authority given to them and does not violate ones constitutional rights. The process is such in Virginia that if the board believes there is a violation, after investigating the complaint by a state investigator of the Department of Professional and Occupational Regulation, if there is prima facia evidence of a violation, the board may offer a consent agreement. If the accused turns that down then an Informal Fact Finding Conference is held. All parties can subpoena witness's, have an attorney present, or hire someone like me as a USPAP Expert to assist them at the IFFC. A member of the VREAB will chair the IFFC. After the IFFC makes a decision it then goes to the full board. When the board hears the case, the member that held the IFFC has to leave the room. Then the board discusses and then votes on the findings. They can uphold the findings, modify the findings, set or modify any monetay penalty, or throw out the case entirely. I have attended many IFFC's on behalf of appraisers, and many full board meetings and have seen all the above transpire.

To answer the baisc question.....it is a USPAP violation when the board finds that it is.

Yes and no,they are violations as soon as they are made.

Kind of like speeding, if you don't get caught, you still broke the law.

Intersting was the fact that "cloning" a report and forgetting to changing relevant information MAY be an USPAP violation. "Skippies" be aware.

 

[CANative]

What USPAP guideline have you been accused of violating?

None.
..................
Is USPAP a guideline or more like a rule?

 

[ctapraser]

None.
..................
Is USPAP a guideline or more like a rule?

It's both.

Some things you can't do.... and somethings, if you do do (not like poop) , have guidelines that should be followed.

 

[CANative]

So what do review appraisers mean when they say so and so "violated USPAP" or that the report "contains USPAP violations?" Or for that matter when one forum member says another forum member violated USPAP?

Or when a client wants an appraisal review to determine if there are "USPAP violations?"

 

[George Hatch]

"USPAP violation" doesn't mean much to me unless/until it is quantified relative to the utility of the report. Users can and do use - with no adverse effects - appraisal reports that may have some minor housekeeping problems. While some of those problems can be technically categorized as "USPAP violations" if they're not causing any big problems then it's silly to get emotionally worked up about them.

Show me how the error or omission caused a problem and I'll share your grief. Apart from that its just another observation to report.

 

[TRESinc]

What about states that do not recognize USPAP?

Which state might that be?

inebriation.

 

[CANative]

Should appraisers even use the phrase "USPAP violation?"

"USPAP violation" doesn't mean much to me unless/until it is quantified relative to the utility of the report. Users can and do use - with no adverse effects - appraisal reports that may have some minor housekeeping problems. While some of those problems can be technically categorized as "USPAP violations" if they're not causing any big problems then it's silly to get emotionally worked up about them.

Show me how the error or omission caused a problem and I'll share your grief. Apart from that its just another observation to report.

 

[hastalavista]

So what do review appraisers mean when they say so and so "violated USPAP" or that the report "contains USPAP violations?" Or for that matter when one forum member says another forum member violated USPAP?

Or when a client wants an appraisal review to determine if there are "USPAP violations?"

There is a difference between:
"I (Denis, the appraiser) think if you do X, you will violate the USPAP."
and
"The Great State of California finds Appraiser Joe in violation of the following USPAP Standards."

We, appraisers and anyone else, can (and do; almost everyday on this forum) form an opinion if some act, committed or omitted, is in violation of a USPAP Standard or Rule, forbidding or commanding that act.
And, we can say, "I think you violated the USPAP.
If we form that opinion and then say it, its meaning is limted:
A. If I say it on this forum in regard to another's actions, question, or statement, so what?
B. If I say it in an appraisal review, then it may impact my client's decision regarding accepting or rejecting the appraisal under review.
C. If I say it in a complaint I make to the state, then it would (presumably) call the state investigator's attention to that specific issue.

So, we can say it all day long, but when we do, its impact is limited.
If the state says it (and that finding isn't overturned), then it no longer is an "opinion" but becomes a fact; the regulator found act X to be a violation of the USPAP.

We say it: an opinion, limited impact; limited by the context we are opining within.
The state says it and is not challenged (or is upheld): A fact, big impact in regards to potential mandatory consequences. I can lose my license. I can be forced to pay a fine. I can be forced to take another class. A client cannot force me to do that. The state can.

 

[23Degrees]

If the question is regarding specific actions I would think that the range on that could be pretty wide. The importance or urgency of a charge of "USPAP Violation" has been qualified in this thread but as far as specific actions it could be anything from neglecting to analyze prior sales of the subject (within 3 years) - an action that would be a direct violation of what is in the USPAP text - to neglecting to analyze prior sales of the comparables (within 1 year) if the assignment conditions included adherence to Fannie Mae's guidelines - an action that is not a direct violation of the USPAP text but would certainly be considered a violation of the SOW rule. And from that standpoint, neglecting or refusing to take a picture of the water heater when that action was an assignment condition of the lender or even just the AMC would fall into that category as well.

I would bet heavily that there have been very few reports ever delivered where a flaw, omission, or error is not present that could ultimately be labeled as a USPAP violation. Hopefully good judgment is utilized by those whose charge of "USPAP Violation" actually has the ability to cause consequences.

 

[CANative]

Can a "USPAP violation" be corrected?