USPAP (Uniform Standards of Professional Appraisal Practice) are the regulations that appraisers must abide by when working in the capacity of an appraiser. These standards are updated every two years to remain current with the markets and government regulations. USPAP contains Frequently Asked Questions (FAQs) to help clarify the regulations.
My blog is intended to point out particular FAQs to help explain why appraisers do what they do and help educate the public. The following is directly from 2012-2013 USPAP. The full book can be found at uspap.org.
Question: An appraiser completed an appraisal for Client A. Client B received a copy of the appraisal from Client A (or the borrower) and finds it acceptable for their purposes, but wants to be identified as the client in the appraisal report. Client B is aware that appraisers are prohibited from readdressing (or transferring) a completed report to a different client's name. As a result, Client B would like to engage the appraiser in a new assignment, limiting the appraiser’s scope of work to only identifying them as the new client. Can the appraiser complete the assignment from Client B under these terms?
Response: No. USPAP requires the scope of work performed to produce credible assignment results. USPAP clearly establishes that the scope of work is determined by the appraiser. If a client’s instructions (i.e., assignment conditions) limit the appraiser’s scope of work in a new assignment to simply identify a new client, the client, not the appraiser, has made the scope of work decision.
In addition, even if the appraiser accepted the client’s proposed scope of work as his or her own, that scope of work may not be adequate to produce credible assignment results as required by USPAP.
As is the case with all assignments, when a client’s assignment conditions are too restrictive to produce credible assignment results, an appraiser must decline or withdraw from an assignment, unless the appraiser can modify those assignment conditions to allow for credible assignment results.