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5
OUR APPRAISAL
PRACTICE
FREQUENTLY
ASKED
QUESTIONS
FAQ No. 65 – New Assignment/
Same Property EA
Q
“I recently prepared a report for
a bank client. A few weeks later a
new bank client called and asked
if we could issue the report to them. I
got the original report released from the
first client, received a new engagement
letter and delivered the new report. I
added an extraordinary assumption (EA)
on condition of the subject since, a new
inspection was not required. The time
between reports was about 6 weeks.
Do we have a policy regarding adding the
EA if the time frame excess a defined time
or limit?”
A
This issue occurs occasionally and
we have not previously prescribed
an EA for use in such situations.
As a result of discussions with the QC
Committee, the following EA should be
included when we are issuing a new report
to a different client:
We assume that there have been no
changes to the physical characteristics
of the subject property from the date of
our inspection to the date of value
Note: Take care not to divulge the name of
the original client to the new client.
This will help ensure that confidentiality
is maintained.
FAQ No. 66 – Certification
Question
Q
“The last few clients I have worked
with required the addition of this
exact statement in the Certification:
“The Appraisal Assignment was
not based on a requested minimum
valuation, a specific valuation, or the
approval of a loan.”
Is this something that needs to be added
to the templates?”
A
The language in our templates is
consistent with that recommended
in USPAP, and this appears to
be dated verbiage. Please refer any
comments to Scott Schafer for discussion
with the client.