Colorado 
Association of Real Estate Appraisers

CAREA General Meeting 7-20-2011

CCA Update: Jo has been elected president. First AMC task force meeting with Marcia Waters. Gayle Berry is the lobbyist. She did a summary which will be added to the website or distributed to the members via email.

UPSAP

Presented by Bonnie Roerig, MAI, AQB, Certified USPAP Instructor. She doesn’t work for lenders and she doesn’t do residential, but she knows a bunch about USPAP. She does a bunch of eminent domain with commercial properties. She also does private litigation. She encourages us to work with the title companies as they need us.  She has been teaching USPAP since the mid 80’s.

Right is right, even if everyone is against it

And

Wrong is wrong, even if everyone is for it

The new USPAP includes several definitions changes. They include “Client” Extraordinary Assumption” and “Hypothetical Condition”.  New is the definition of “Exposure Time”. There is going to be a new Recordkeeping rule. There was a suggestion that things such as hypothetical conditions be labeled.  This was not passed as the labeling is not probably the issue, but the content of the appraisal.  Adding the labeling requirement would allow for an easy disciplinary conduit and is not appropriate.  Standards 4 and 5 have always been controversial.  There was a proposal to retire the two standards.  We think that they will be retired. 

What is next for USPAP? Reporting will finally be addressed. Why don’t we require a “scope of reporting” similar to the “scope of work”?

Common Errors:

  • •·         Certification statements missing or incorrect
  • •·         Client, intended user, intended use not determined and reported
  • •·         Scope of work not property considered
  • •·         Extraordinary assumptions improperly handled
  • •·         Hypothetical conditions improperly handled
  • •·         Prospective value opinion inappropriately developed and reported
  • •·         Subject sale history incomplete or lacking
  • •·         Highest and best us analysis is flawed
  • •·         Excess and surplus land addressed improperly
  • •·         Reconciliation improperly developed and reported
  • •·         Reporting requirements are not met
  • •·         Miscellaneous


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