USPAP Standard 2

Restricted appraisal report

When intended users do not include parties other than the client a stated report (restricted appraisal) maybe used

Appraisal report

When intended users include parties other than the client summarized (appraisal) reports must be provided

State

Is used to connote a minimal presentation of information

Summarize

Is used to connote an expanded presentation of information

Standard rule 2-2

Each written Real property appraisal report must be prepared under one of the following options and prominently state which option is used: appraisal report or restricted appraisal report.

Standard rule 2-3

Each written real property appraisal report must contain a signed certification. Signed of certifications are required for both written and oral reports; are required by USPAP for all appraisal and appraisal review reports

If the individual who provides assistance does not sign the certification;

- The name of the person who provided assistance must be stated in the certification - The report must, summarize or state, the extent of the assistance

If the individual who provides assistance signs the certification:

- The report must clearly state who did and did not inspect the property - Any appraiser who signs the certification accepts full responsibility for all elements in the certification, the assignment results and for the content of the appraisal report

The 4 standard of standard rule 2

2-1 - must contain sufficient information for intended user to understand the report properly. 2-2 - written real property appraisals must be prepared as either an appraisal report or a restricted appraisal report. 2-3 - 2-4

Standards rule 2-1

Each written or oral real property appraisal report must: A) clearly and accurately set forth the appraisal in a manner that will not be misleading; B) contain sufficient information to enable the intended users of the appraisal to understand the report properly; and C) clearly and accurately disclose all assumptions, extraordinary assumptions, hypothetical conditions and limiting conditions used in the assignment.

Standard rule 2-2 B

Establishes the minimum content for a restricted appraisal report: - Limits use of the report to the client and warns that the rationale for how the appraiser arrived at the opinions and conclusions set forth in the report may not be understood properly without additional information in the appraisers work file - State the intended use of the appraisal - State information sufficient to identify the real estate involved in the appraisal - State the real property interest appraised - State the type of value and cite the source of the definition - State the effective date of the appraisal and the date of the report - State the scope of work used to develop the appraisal - State the information analyzed; exclusion of the sales comparison approach, cost approach or income approach must be explained. A summary of the results of analyzing the subject sales, options and listings in accordance with standard rule 1-5 is required. - State the use of the real estate existing as of the date of value and the use of the real estate reflected in the appraisal - when an opinion of highest and best use was developed by the appraiser state the opinion - clearly and conspicuously state all extraordinary assumptions and hypothetical conditions; and state that their use might have affected the assignment results - include a signed certification in accordance with standard rule 2-3

Standard rule 2-2 A

Establishes the minimum content for an appraisal report: - State the identity of the client and any intended users, by name or type - State the intended use of the appraisal - summarize information sufficient to identify the real estate involved in the appraisal, including the physical, legal, and economic property characteristics relevant to the assignment - State the real property interest appraised - State the type and definition of value and cite the source of the definition - State the effective date of the appraisal and the date of the report - Summarize the scope of work used to develop the appraisal - Summarize the information analyzed, the appraisal methods and techniques employed, and the reasoning that supports the analyses, opinions, and conclusions; exclusion of the sales comparison approach, cost approach, or income approach must be explained. - State the use of the real estate existing as of the date of value and the use of the real estate reflected in the appraisal - when an opinion of highest and best use was developed by the appraiser, summarize the support and rationale for that option - clearly and conspicuously state all extraordinary assumptions and hypothetical conditions; and state that their use might have affected the assignment results - include a signed certification in accordance with standard rule 2-3

USPAP standard 2

In reporting the results of a real property appraisal, an appraiser must communicate each analysis, opinion and conclusion in a manner that is not misleading. This standard sets forth a minimum content requirement for written and oral real property appraisal reports.

Recertification of value

Performed to confirm whether or not the conditions of a prior appraisal have been met, and does not change the effective date of the value opinion

Standard rule 2-4

To the extent that it is both possible and appropriate, an oral real property appraisal report must address the substantive matters set forth in standard rule 2-2 a