Happy New Year and I hope everyone had a wonderful holiday season. As noted in my last post several weeks back, between work assignments, the holiday season and a general malaise, I took a self imposed pause in postings on the AW Blog.
I would like to thank everyone who reached out to me to make sure I was OK, and also all of the kind words about the blog and postings. I do believe I am back in the proper frame of mind after my "pause" and I look forward to finding and posting on new, timely and interesting topics related to personal property appraising and the fine and decorative arts market. As always, if you have an interesting article on personal property appraising or the art market please forward it to me.
I already have a few items in mind for the next few posts including Artist Liquidity & Financial Performance from Mike Moses (of the Mei Moses art index sold to Southeby's), some legal filings in the Leigh Keno bankruptcy (sent to me from an anonymous individual) and Dave Maloney's newest version of Appraising Personal Property.
The block quote had the ASB summary of actions related to USPAP changes and updates. More information is available, along with ordering information for the newest version of USPAP.
BTW, as mentioned above, I have received a copy of David Malony's 9th edition of Appraising Personal Property: Principles & Methodology and will soon post a review. Dave does an amazing job in keeping this book updated with new versions of USPAP and refinements in appraisal theory and methodology.
USPAP update summary
Source: The Appraisal FoundationRevision of SCOPE OF WORK RULE
The Board adopted revisions to add language to the Disclosure Obligations section of the SCOPE OF WORK RULE to address the flexibility afforded the appraiser in the disclosure of scope of work.
Revisions to COMPETENCY RULE
The Board revised the “Perfection is impossible to attain...” Comment in Standards Rules 1-1, 3- 1, 5-1, 7-1, and 9-1, and moved it into to the COMPETENCY RULE. Moving the Comment into the COMPETENCY RULE reduces duplication and, at the same time, broadens the applicability since the COMPETENCY RULE applies to both development and reporting in all disciplines.
Revisions to DEFINITIONS
The Board adopted some modifications and additions to the DEFINITIONS in order to help readers better understand USPAP. The Board adopted changes to the definitions of APPRAISAL, APPRAISAL PRACTICE, APPRAISAL REVIEW, APPRAISER, ASSIGNMENT CONDITIONS, ASSIGNMENT RESULTS, CLIENT, COST, EXPOSURE TIME, MARKET VALUE, PERSONAL PROPERTY, REAL PROPERTY, VALUATION SERVICE, VALUE and WORKFILE.
The Board also adopted new definitions for the terms ASSIGNMENT ELEMENTS, EFFECTIVE DATE, MISLEADING, PERSONAL INSPECTION, PHYSICAL CHARACTERISTICS, and RELEVANT CHARACTERISTICS, to help clarify how each term is used in USPAP.
Other Edits to Improve Clarity and Enforceability of USPAP
The Board adopted changes related to the phrases “accept an assignment” and “intangible items.” The edits are intended to improve clarity and consistency.
Revisions to ADVISORY OPINION 1, Sales History
The Board adopted revisions to Advisory Opinion 1, Sales History, to provide additional detail and illustrations related to an appraiser’s obligation to analyze the listing, contract, and sales history of the subject property.
Revisions to ADVISORY OPINION 2, Inspection of Subject Property
The Board adopted revisions to Advisory Opinion 2, Inspection of Subject Property, to provide guidance and illustrations reflecting changes in the marketplace related to an appraiser’s inspection of a property.
Revisions to ADVISORY OPINION 3, Update of a Prior Appraisal
The Board adopted revisions to Advisory Opinion 3, Update of a Prior Appraisal, to clarify an appraiser’s obligations regarding confidentiality when performing an update of an appraisal using the “incorporate by reference” option.
Revisions to ADVISORY OPINION 28, Scope of Work Decision, Performance, and Disclosure
The Board adopted revisions to Advisory Opinion 28, Scope of Work Decisions, Performance, and Disclosure, including a new Illustration 2 regarding a scope of work problem related to tangible personal property, and adding an additional illustration regarding a scope of work problem related to real property.
Revisions to ADVISORY OPINION 31, Assignments Involving More than One Appraiser
The Board adopted revisions to Advisory Opinion 31, Assignments Involving More than One Appraiser, to help clarify guidance related to significant appraisal assistance and Standards Rules 2-3, 4-3, 6-3, 8-3, and 10-3.
Revisions to ADVISORY OPINION 32, Ad Valorem Property Tax Appraisal and Mass Appraisal Assignments
The Board adopted revisions to Advisory Opinion 32, Ad Valorem Property Tax Appraisal and Mass Appraisal Assignments, that adds a new Illustration 5 on the topic of an appraiser’s obligations regarding the quantity and quality of factual data collected in a mass appraisal assignment.
Revisions to ADVISORY OPINION 36, Identification and Disclosure of Client, Intended Use, and Intended Users
The Board adopted revisions to Advisory Opinion 36, Identification and Disclosure of Client, Intended Use, and Intended Users, to clarify an appraiser’s requirement to make a proper disclosure of the client and any other intended users in an Appraisal Report or Restricted Appraisal Report, particularly in cases where the client has requested anonymity in the report.
Creation of ADVISORY OPINION 38, Content of an Appraisal Report and Restricted Appraisal Report
The Board adopted newly-created Advisory Opinion 38, Content of an Appraisal Report and Restricted Appraisal Report. The new Advisory Opinion compares the reporting requirements under the revised Appraisal Report and Restricted Appraisal Report options, and replaces the prior guidance offered in Advisory Opinions 11 and 12.
Retirement of ADVISORY OPINION 4, Standards Rule 1-5(b); ADVISORY OPINION 11, Content of the Appraisal Report Options of Standards Rules 2-2, 8-2, and 10-2; and ADVISORY OPINION 12, Use of the Appraisal Report Options of Standards Rules 2-2, 8-2, and 10-2
The Board adopted the retirement of Advisory Opinions 4, 11, and 12. Advisory Opinion 4 was narrowly-focused, and was more appropriately housed where it also currently exists in the USPAP Frequently Asked Questions. As stated above, Advisory Opinions 11 and 12 have been replaced with the newly-created Advisory Opinion 38, Content of an Appraisal Report and
Restricted Appraisal Report.
Additional administrative edits will be made to other Advisory Opinions and FAQs for consistency with the adopted changes.
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