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USPAP 2018-2019 Edition

© The Appraisal Foundation

21

STANDARD 2

(i)

state the identity of the client, unless the client has specifically requested otherwise; state the

identity of any intended users by name or type;

29

Comment: An appraiser must use care when identifying the client to avoid violations of the

Confidentiality section of the ETHICS RULE. If a client requests that the client’s identity be withheld

from the report, the appraiser may comply with this request. In these instances, the appraiser must

document the identity of the client in the workfile and must state in the report that the identity of the

client has been withheld at the client’s request.

Types of intended users of the report might include parties such as lenders, employees of government

agencies, partners of a client, and a client’s attorney and accountant.

(ii)

state the intended use of the appraisal;

30

(iii) summarize information sufficient to identify the real estate involved in the appraisal, including the

physical, legal, and economic property characteristics relevant to the assignment;

31

Comment: The real estate involved in the appraisal can be specified, for example, by a legal description,

address, map reference, copy of a survey or map, property sketch, and/or photographs or the like. The

summarized information can include a property sketch and photographs in addition to written comments

about the legal, physical, and economic attributes of the real estate relevant to the type and definition of

value and intended use of the appraisal.

(iv) state the real property interest appraised;

Comment: The statement of the real property rights being appraised must be substantiated, as

needed, by copies or summaries of title descriptions or other documents that set forth any known

encumbrances.

(v)

state the type and definition of value and cite the source of the definition;

Comment: Stating the definition of value also requires any comments needed to clearly indicate to the

intended users how the definition is being applied.

When reporting an opinion of market value, state whether the opinion of value is:

• in terms of cash or of financing terms equivalent to cash, or

• based on non-market financing or financing with unusual conditions or incentives.

When an opinion of market value is not in terms of cash or based on financing terms equivalent to cash,

summarize the terms of such financing and explain their contributions to or negative influence on value.

When an opinion of reasonable exposure time has been developed in compliance with Standards Rule

1-2(c), the opinion must be stated in the report.

32

(vi) state the effective date of the appraisal and the date of the report;

33

Comment: The effective date of the appraisal establishes the context for the value opinion, while the

date of the report indicates whether the perspective of the appraiser on the market and property as of

the effective date of the appraisal was prospective, current, or retrospective.

29 See Advisory Opinion 36,

Identification and Disclosure of Client, Intended Use, and Intended Users

, and Advisory Opinion 25,

Clarification

of the Client in a Federally Related Transaction

.

30 See Advisory Opinion 36,

Identification and Disclosure of Client, Intended Use, and Intended Users

.

31 See Advisory Opinion 2,

Inspection of Subject Property

, and Advisory Opinion 23,

Identifying the Relevant Characteristics of the Subject

Property of a Real Property Appraisal Assignment.

32 See Advisory Opinion 7,

Marketing Time Opinions

, Advisory Opinion 22,

Scope of Work in Market Value Appraisal Assignments, Real

Property

, and Advisory Opinion 35,

Reasonable Exposure Time in Real and Personal Property Opinions of Value

.

33 See Advisory Opinion 34,

Retrospective and Prospective Value Opinions

.

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