Some important changes have been made to USPAP for 2010 - 2011.
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APPRAISAL DEFINITIONS |
The following Definitions are from Uniform Standards of Professional Appraisal Practice, 2006 Edition, published in the United States of America © by the Appraisal Standards Board of The Appraisal Foundation, authorized by Congress as the Source of Appraisal Standards and Appraiser Qualifications.
APPRAISAL:
(noun) The act or process of developing an
opinion of value; an opinion of
value.
(adjective) Of or pertaining to
appraising and related functions such as appraisal practice or appraisal
services.
STANDARD 2: REAL PROPERTY APPRAISAL, REPORTING
In reporting the results of a real property appraisal, an appraiser must communicate each analysis, opinion, and conclusion in a manner that is not misleading.STANDARDS RULE 2-2 (This Standards Rule contains binding requirements from which departure is not permitted)
Each written real property appraisal report must be prepared under one of the following three options and prominently state which option is used: Self-Contained Appraisal Report, Summary Appraisal Report, or Restricted Use Appraisal Report.COMMENT: When the intended users include parties other than the client, either a Self-Contained Appraisal Report or a Summary Appraisal Report must be provided. When the intended users do not include parties other than the client, a Restricted Use Appraisal Report may be provided.
The essential difference among these three options is in the content and level of information provided.
An appraiser must use care when characterizing the type of report and level of information communicated upon completion of an assignment. An appraiser may use any other label in addition to, but not in place of, the label set forth in this Standard for the type of report provided.
The report content and level of information requirements set forth in this Standard are minimums for each type of report. An appraiser must supplement a report form, when necessary, to ensure that any intended user of the appraisal is not misled and that the report complies with the applicable content requirements set forth in this Standards Rule.
A party receiving a copy of a Self-Contained Appraisal Report, Summary Appraisal Report, or Restricted Use Appraisal Report in order to satisfy disclosure requirements does not become an intended user of the appraisal unless the appraiser identifies such party as an intended user as part of the assignment.
APPRAISAL REVIEW: The act or process of developing and communicating an opinion about the quality of another appraiser's work.
COMMENT: The subject of an appraisal review assignment may be all or part of a report, workfile, or a combination of these.APPRAISAL CONSULTING: The act or process of developing an analysis, recommendation, or opinion to solve a problem, where an opinion of value is a component of the analysis leading to the assignment results.
COMMENT: An appraisal consulting assignment involves an opinion of value but does not have an appraisal or an appraisal review as its primary purpose.CONFIDENTIALITY RULE: An
appraiser must protect the confidential nature of the appraiser-client
relationship.
An appraiser must act in
good faith with regard to the legitimate interests of the client in the
use of confidential information and in the communication of assignment
results.
An appraiser must be
aware of, and comply with, all confidentiality and privacy laws and
regulations applicable in an assignment*.
An appraiser must not disclose confidential information or assignment results prepared for a client to anyone other than the client and persons specifically authorized by the client; state enforcement agencies and such third parties as may be authorized by due process of law; and a duly authorized professional peer review committee except when such disclosure to a committee would violate applicable law or regulation. It is unethical for a member of a duly authorized professional peer review committee to disclose confidential information presented to the committee.
Comment: When all confidential elements of
confidential information are removed through redaction or the process of
aggregation, client authorization is not required for the disclosure of
the remaining information, as modified.
*NOTICE: Pursuant to the passage of the
Gramm-Leach-Bliley Act in 1999, numerous agencies have adopted new privacy
regulations. Such regulations
are focused on the protection of 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)
We recommend you visit the Appraisal Foundation website for the 2010 revisions to USPAP. Those changes are now in effect. You need to know.
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