Appraisal - USPAP 2 Flashcards Preview

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Flashcards in Appraisal - USPAP 2 Deck (36):
1

Content

5 rules
10 standards
Statements

2

Rules - Ethics Rule

Conduct
Management (Fee issues, advertising)
Confidential

3

Rules - Record Keeping Rule

5 years; Jurisdictional exception 2 years
Applies to appraisal, appraisal review, and consulting assignments

4

Rules- Competency Rule

Pre-assignment & assignment conditions for knowledge & experience

5

Rules - Scope of Work Rule

obligation related to problem identification, research and analysis

6

Rules - Jurisdictional Exception Rule

preserves the balance of USPAP if a portion is con tray to law or public policy of a jurisdiction

7

Standard 1 & 2

Real property Appraisal
1.Development
2.Reporting

8

Standard 3

Appraisal Review
Development and Reporting

9

Standard 4 & 5

Real Property Appraisal Consulting
4. Development
5. Reporting

10

Standard 6

Mass Appraisal
Development and Reporting

11

Standard 7 & 8

Personal Property Appraisal
7.Development
8. Reporting

12

Standard 9 & 10

Business
9.Developement
10. Reporting

13

Statement

Full weights of a Standard rule

14

Scope of Work Rule
Why is proper disclosure Scope of Work important

Clients and intended users rely/understand on the assignment results
-intended use
-intended users
-level of inspection
-level of analysis
-Type of data to be analyzed
NOT report option

15

Retrospective Assignment

Competency Rule applies at the time of assignment rather than EFFECTIVE DATE

16

Bias

Preference or inclination that precludes an appraiser's impartiality (公平公正)

17

Confidential Information

may be voided or modified to allow disclosure
1.State enforcement agencies
2.Third parties authorized by law
3.Authorized peer review (except violate law)
CANNOT BE DISCLOSED TO THE PROPERTY OWNER!

18

Anonymous Client

1. Could be anonymous in the appraisal report
2. Client must be noted by name in the work file and a disclosure must be included in the report
3. The appraiser must know the identify of the client
4. INTENDED USE must always be known

19

Ethic Rule

Promote preserve public trust
Net engage in criminal trust
Record Keeping
Confidential information can be disclosed

20

Acceptance of assignment - assessed value

USPAP does not prohibit the appraiser's fee being based on the owner's estimated value, the assessed value, the pending sale price or any other amount outside the appraiser's control

21

State Licensing Agencies

empowered to discipline appraisers

22

Scope of Work - Assignment Condition

assumptions:
1. extra ordinary assumption
2. hypothetical condition
3. Laws and regulations
4. Legislative and court-made law
5. Administrative rules and ordinances
DO NOT INCLUDE CHARACTERISTIC

23

Development Standard

First: identify the problem to be solved

24

Comp # requirement

none from USPAP

25

Partial holding

USPAP allows (e.g. one-acre segment of a five-acre parcel)-must obtain data from reliable source for the intended use of the appraisal

26

Standard 2-2

Report - citation of the definition

27

Update of appraisal

a new assignment

28

Recertification of Value

confirms whether the conditions of a prior opinion have been met, and thus does not change the effective date

29

Restrict use report

client is the only intended user

30

Standard 3 - signed certification

Reviewer who signs any part of a report or a letter of transmittal must also sign the certification

31

Extraordinary Assumption

The appraiser's inability to physically inspect site improvement (e.g. underground utilities)

32

Scope of Work

Have to withdraw assignment if there is no relevant information available.
Can Modify condition or use an extraordinary assumption

33

Standard 1-5

Analyze any current agreement of
Sale, option, or listing

34

Provide Sales Data only

1. Appraisal practice with no performance standard or record keeping requirements
2. Still comply Definition, Preamble, Ethic Rule, Competency Rule, Jurisdictional rule and Statement

35

Standard 1-3

To obtain credible results, to develop an opinion of highest and best use of real estate (market value)
*the concept of highest and best use is often not applicable with other types of value

36

Standard 1-4

Sales comp- data must avaialble