Friday, September 5, 2014

Future Revisions to USPAP

The Appraisal Standards Board has issued their third exposure draft of proposed changes for the 2016-2017 edition of USPAP. Although the last thing on your mind is what might occur with USPAP in 2016, it does give rise to pondering issues that are sure to be significant in only a few years. Since the ASB is requesting comments on these proposals, I thought it might be wise to list a couple of them that might raise an eyebrow and even result in a few of members taking the time to put their thoughts on paper.
  • Changing the definition of an appraisal report to any communication of an appraisal or appraisal review to a client or authorized party that includes a signed certification. (Oral reports will still require the certification to be included in the workfile.) This will allow other correspondence sent between appraiser and client to be considered as preliminary and/or a “draft.”
  • Drafts must be clearly stated as “drafts” and that the opinions rendered are subject to change. They must not contain a signed certification. These communications must be kept on file or in file until superseded by the subsequent report.
  • Appraisal review reports may be exempt from the requirement to report the effective date of the review, unless it includes an assignment to value the property.
  • The ASB is suggesting retirement of ALL Statements on Appraisal Standards.
  • Any fees paid for the procurement of an assignment must be disclosed including referral fees or fees associated with a delivery system required by the client (a portal).
As you can see, revisions and issues never stop. These are only proposals, but this is the last draft for public comment. Go to www.appraisalfoundation.org for more information or to submit any personal comments.

Leon Castner, ISA CAPP

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