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USPAP 2018-2019 Edition

© The Appraisal Foundation

27

STANDARD 3

Comment: A reviewer must not allow the intended use of an assignment or a client’s objectives to cause the

assignment results to be biased. A reviewer must not advocate for a client’s objectives.

The intended use refers to the use of the reviewer’s opinions and conclusions by the client and other

intended users; examples include, without limitation, quality control, audit, qualification, or confirmation.

(c) identify the purpose of the appraisal review, including whether the assignment includes the development

of the reviewer’s own opinion of value or review opinion related to the work

under review;

48

Comment: The purpose of an appraisal review assignment relates to the reviewer’s objective; examples

include, without limitation, to determine if the results of the work under review are credible for the intended

user’s intended use, or to evaluate compliance with relevant USPAP requirements, client requirements, or

applicable regulations.

In the review of an appraisal assignment, the reviewer may provide an opinion of value for the property that

is the subject of the work under review.

In the review of an appraisal review assignment, the reviewer may provide an opinion of quality of the work

that is the subject of the appraisal review assignment.

(d) identify the work under review and the characteristics of that work which are relevant to the intended use

and purpose of the appraisal review, including:

(i)

any ownership interest in the property that is the subject of the work under review;

(ii)

the date of the work under review and the effective date of the opinions or conclusions in the work

under review;

(iii) the appraiser(s) who completed the work under review, unless the identity is withheld by the client;

and

(iv) the physical, legal, and economic characteristics of the property, properties, property type(s), or

market area in the work under review.

Comment: The subject of an appraisal review assignment may be all or part of a report, a workfile, or a

combination of these, and may be related to an appraisal or appraisal review assignment.

(e) identify any extraordinary assumptions necessary in the review assignment;

Comment: An extraordinary assumption may be used in a review assignment only if:

• it is required to properly develop credible opinions and conclusions;

• the reviewer has a reasonable basis for the extraordinary assumption;

• use of the extraordinary assumption results in a credible analysis; and

• the reviewer complies with the disclosure requirements set forth in USPAP for extraordinary assumptions.

(f) identify any hypothetical conditions necessary in the review assignment; and

Comment: A hypothetical condition may be used in a review assignment only if:

• use of the hypothetical condition is clearly required for legal purposes, for purposes of reasonable

analysis, or for purposes of comparison;

• use of the hypothetical condition results in a credible analysis; and

• the reviewer complies with the disclosure requirements set forth in USPAP for hypothetical conditions.

48 See Advisory Opinion 20,

An Appraisal Review Assignment That Includes the Reviewer’s Own Opinion of Value.

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