There was much to be gained from the Association of Appraisal Regulatory Officials (AARO) conference which was held in May in San Diego. I mean, when you put several dozen appraisal regulators, representatives from appraisal organizations, AMCs, attorneys, and appraisal education companies all together in the same room, you’re going to get magic. (Okay, in fairness, you’re going to get a lot of hot air, also.)
One of the particularly enlightening speakers was Barry Shea, who is a current member of the Appraisal Standards Board (that’s right, the folks who are responsible for USPAP).
Mr. Shea provided an interesting take on the new 2010 USPAP requirement that an appraiser must disclose to a prospective client any prior services provided by the appraiser relating to the subject property, and must provide an additional disclosure in the certification.
In the USPAP courses I have taught this year, one of the favorite pastimes of appraisers is to come up with crazy scenarios and ask, “Would I need to disclose this?” For example, “I delivered newspapers to the property when my son was sick and couldn’t finish his paper route. Do I have to disclose that?” Or, “I delivered a pizza to the house; would that require disclosure?” What I have been telling my USPAP students is, when in doubt, disclose. The ASB has issued precious little guidance for appraisers on these new requirements.
When these types of issues were brought up to Mr. Shea at AARO, he stated that this disclosure requirement is intended for the appraiser to disclose services provided in relation to the property (appraisal, brokerage, construction, etc.) and not necessarily the occupants of the property (newspaper delivery, pizza delivery, babysitting, etc.).
But before you go out there and change the way you disclose, we have nothing in writing yet. Mr. Shea was implored by several conference attendees to provide this information in a USPAP Q&A, and he said he would look into doing so. So, Mr. Shea and other members of the ASB – the ball is in your court.
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