The Appraisal Standards Board recently released a Q&A about multiple users for a restricted appraisal report. The questions was that two parties, familiar with the property requested a restricted appraisal report. But a restricted appraisal report is specifically for the client, and the answer given was if both parties were the client, it is OK.
As an aside, on Monday I participated in an Appraisal Foundation update for sponsors, and learned that within the next few days the Appraisal Foundation will have another article on personal property published at the Huffington Post. I will post on it as soon as it is available.
The ASB reports
Source: The Appraisal Foundation2016-12: APPRAISAL REPORTING - USE AND FORMAT ISSUES
Restricted Appraisal Report for Multiple Parties
Question:
I received an inquiry about performing an appraisal assignment. The caller stated the assignment would have two intended users: 1) himself (as the client); and 2) his business partner. Both parties are very familiar with the property and are frequent users of appraisal services. Therefore, I was asked to produce a Restricted Appraisal Report. However, USPAP prohibits issuing a Restricted Appraisal Report when there are any intended users other than the client. Is there a way I can produce a Restricted Appraisal Report for multiple parties under USPAP?
Response:
Yes. Although USPAP does not permit a Restricted Appraisal Report when there are additional intended users beyond the client, USPAP does allow multiple parties to engage an appraiser in an assignment.
In this case, if both parties engage the appraiser as co-clients, there would be no intended users besides the client(s), and a Restricted Appraisal Report would be permitted under USPAP.
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