Wednesday, July 19, 2017

Ask an Instructor: Who Can Use Restricted Appraisal Reports?

ISA members are invited to send in their questions on all things appraising and education to ISA's instructors. One of ISA's instructors will share answers on the ISA Now Blog. Please send questions to directorofeducation@isa-appraisers.org.

Question: I know that USPAP states that we cannot complete a Restricted Appraisal Report when there is an intended user other than the client, but what about when a brother and sister are the only intended users? Both are familiar with the property being appraised, and both have used appraisal services in the past. Is there a way to produce a Restricted Appraisal Report for multiple parties and remain USPAP compliant?

Answer: USPAP Standards Rule 8-2 is clear that when intended users include parties other than the client then a Restricted Appraisal Report cannot be used by the appraiser. That said, USPAP does allow multiple parties to engage an appraiser in an assignment. So, if both the brother and sister in the above example engage the appraiser as co-clients, then there would be no intended users besides the client(s). As such, a Restricted Appraisal Report would be permitted under USPAP in this particular situation.

- Meredith Meuwly, ISA Director of Education

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