The 2012 USPAP contains changes critical for the appraiser.
1. Certification 2-03. Appraiser must disclose whether or not they have provided prior services on a property being appraised in the last 36 months from a possible Effective Date of Value. This requirement is stated in Certification in SR 2-3 and can be found on page 29 in the 2012- USPAP manual. Appraiser must disclose if they have a current or prospective interest in the property or parties to the transaction.
2. The 2012 USPAP requires appraiser to include the Exposure time statement in the report. Read USPAP 2012 on this and refer to Exposure Time definition.
Definitions and comments:
EXPOSURE TIME: estimated length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal.
The Exposure time is a retrospective opinion based on an analysis of past events assuming a competitive and open market.
“I have performed no (or the specified) other services, as an appraiser or in any other capacity, regarding the property that is the subject of the work under review within the three-year period immediately preceding acceptance of this assignment.
These changes should make your appraisal reports USPAP 2012 compliant.
Special thanks to appraisaltoday.com for this reminder!
Happy Appraising to all of you in 2012!!!!