I'm pleased to announce a ground-breaking article written by my Appraisal Course Associates partner, Bill Novotny (left).Of this article, Bill states:
"The competency requirements for personal property appraisers is often confusing due to factors such as the myriad of different personal property types encountered by the generalist appraiser, laws and regulations that may apply, methodology requirements and geographic competency. When must an appraiser make a competency disclosure to the client as required by the COMPETENCY RULE of USPAP? This article focuses on the object knowledge required of the appraiser and when a lack of competency must be disclosed.
There are many instances when an appraiser has knowledge and experience regarding property types, but that knowledge and experience is often less than that of an expert. What happens when an appraiser thinks that he or she can develop credible assignment results through research and consultation even though they have only limited specialty knowledge with the property type? Must they make a competency disclosure?
This article explores these issues and points out that consultation with experts, even when the resulting assistance is significant, does not necessarily equate to a lack of competency. We must remember that the SCOPE OF WORK RULE, at all times, requires that the appraiser do whatever is necessary to develop credible assignment results. Expert consultation is frequently pursued by appraisers as part of the scope of work required. Such fact finding can be regarded as consistent with the SCOPE OF WORK rule for experienced appraisers. Similar fact finding may be required by the COMPETENCY RULE for beginning appraisers who have little knowledge and experience. The burden is on the appraiser to determine which of the two rules apply. The primary question that appraisers must answer is whether or not they have the requisite knowledge and experience to develop and report assignment results that are credible and relevant to the intended use of the report. If the answer is a confident Yes then, in my opinion, USPAP would not require a competency disclosure."
Click here to read Bill's article "COMPETENCY RULE or SCOPE OF WORK RULE: Which Rule Rules?"
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Settlement Dispute Said,
In my opinion, there is a certain degree of confusion, when it comes to the appraiser’s obligations as a party-appointed appraiser. Considering the lack of “policy procedure” written on the subject, and the unfortunate fact that many unexperienced individuals are being appointed as appraiser of late, we can generally determine that there is indeed some confusion on the subject. http://digitory.wordpress.com/2010/09/02/are-party-appointed-appraisers-expected-to-advocate-the-appointing-partys-interests/
Posted on September 24, 2010 at 6:05 AM
pjanderson153 Said,
Inspections and Appraisals
Property Condition Assessment
Commercial Appraisals
Equipment Appraisals
Phase 1 Environemetal Site Assessment
Posted on September 7, 2018 at 4:41 PM