Each written or oral real property appraisal consulting report must:
 

(a)

clearly and accurately set forth the appraisal consulting assignment results in a manner that will not be misleading;

(b)

contain sufficient information to enable the intended users of the appraisal consulting assignment results to understand the report properly; and

(c)

clearly and accurately disclose all assumptions, extraordinary assumptions, hypothetical conditions, and limiting conditions used in the assignment.

Comment: The content of a real property appraisal consulting report must be sufficiently comprehensive so that an intended user can understand the problem addressed and the analyses, and follow the reasoning through each step of the analytical process. It is essential that throughout the report the data, analyses, assumptions and conclusions are logical and adequately supported.

The content of each written real property appraisal consulting report must be consistent with the intended use of the appraisal consulting assignment results and, at a minimum:

(a)

state the identity of the client and any intended users, by name or type; 46
 

Comment: An appraiser must use care when identifying the client to ensure a clear understanding and to avoid violations of the Confidentiality section of the ETHICS RULE. In those rare instances where the client wishes to remain anonymous, an appraiser must still document the identity of the client in the workfile, but may omit the client’s identity in the report.

Intended users of the report might include parties such as lenders, employees of government agencies, partners of a client, and a client’s attorney and accountant.

(b)

 state the analysis, recommendation or opinion developed;

(c)

state the intended use of the appraisal consulting assignment; 47

(d)

state information sufficient to identify the real property pertinent to the appraisal consulting assignment, and state the physical, legal, and economic characteristics of the property, properties, property types, or market area pertinent to the assignment; 48

(e)

state the effective date of the appraisal consulting assignment results, the date of appraisal pertinent to each opinion of value used in an analysis in support of the appraisal consulting results, and the date of the appraisal consulting report; 49

(f)

state the scope of work used to develop the assignment results; 50

Comment: Because intended users’ reliance on assignment results may be affected by the scope of work, the report must enable them to be properly informed and not misled. Sufficient information includes disclosure of research and analyses performed and might also include disclosure of research and analyses not performed.

When any portion of the work involves significant real property appraisal or appraisal consulting assistance, the appraisal consultant must describe the extent of that assistance. The signing consulting appraiser must also state the name(s) of those providing significant real property appraisal or appraisal consulting assistance in the certification, in accordance with 5-3.

(g)

summarize the information used in the appraisal consulting analyses, the appraisal consulting methods and techniques employed, and the reasoning that supports the analyses, opinions, and conclusions;

Comment: If the value opinion used in the appraisal consulting assignment was not performed by the consulting appraiser, the appraisal consulting report must include:

• the information required in Standards Rule 3-2, or

• a statement of the appraisal review results, and a reference to the appraisal review documentation retained in the appraisal consultant’s appraisal consulting assignment workfile, or

• a statement supporting the use of that appraisal as an extraordinary assumption in the appraisal consulting assignment.

If an opinion of value was developed by the consulting appraiser, the appraisal consulting report must include the information required to comply with Standards Rule 2-2(a) or (b)(ii) through (x). Standards Rule 2-2(c)(ii) through (x) is also permitted if the client is the only intended user of the assignment results.

(h)

state the appraiser’s appraisal consulting recommendations (if any), and conclusions or opinions;
 

(i)

clearly and conspicuously:

• state all extraordinary assumptions and hypothetical conditions; and

• state that their use might have affected the assignment results; and 

(j)

include a signed certification in accordance with Standards Rule 5-3.
 

I certify that, to the best of my knowledge and belief:
 

—

the statements of fact contained in this report are true and correct.
 

—

the reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are my personal, impartial, and unbiased professional analyses, opinions, conclusions, and recommendations.

—

I have no (or the specified) present or prospective interest in the property that is the subject of this report, and I have no (or the specified) personal interest with respect to the parties involved.

—

I have no bias with respect to any property that is the subject of this report or to the parties involved with this assignment.

—

my engagement in this assignment was not contingent upon developing or reporting predetermined results.

—

my compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal consulting assignment.

—

my analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice.

—

I have (or have not) made a personal inspection of the property that is the subject of this report. (If more than one person signs this certification, the certification must clearly specify which individuals did and which individuals did not make a personal inspection of the property).  51

—

no one provided significant real property appraisal or appraisal consulting assistance to the person signing this certification. (If there are exceptions, the name of each individual providing significant real property appraisal or appraisal consulting assistance must be stated.)

Comment: A signed certification is an integral part of the appraisal consulting report.  An appraiser who signs any part of the appraisal consulting report, including a letter of transmittal, must also sign the certification.

In an assignment that includes only assignment results developed by the real property appraiser(s), any appraiser(s) who signs a certification accepts full responsibility for all elements of the certification, for the assignment results, and for the contents of the appraisal consulting report.  In an assignment that includes personal property, business or intangible asset assignment results not developed by the real property appraiser(s), any real property appraiser(s) who signs a certification accepts full responsibility for the real property elements of the certification, for the real property assignment results, and for the real property contents of the appraisal consulting report.

If the signing consulting appraiser(s) has relied on work from others, who do not sign the certification, then the signing consulting appraiser(s) is responsible for the decision to rely on such work. The signing consulting appraiser is required to have a reasonable basis for believing that those individuals performing the work are competent and that their work is credible.

The names of individuals providing significant real property appraisal or appraisal consulting assistance who do not sign the certification must be stated in the certification. It is not required that the description of their assistance be contained in the certification, but disclosure of their assistance is required in accordance with SR 5-2(f).

46.

See Statement on Appraisal Standards No. 9, Identification of Intended Use and Intended Users.

47.

See Statement on Appraisal Standards No. 9, Identification of Intended Use and Intended Users.

48.

See Advisory Opinion 2, Inspection of Subject Property. References to Advisory Opinions are for guidance only and do not incorporate Advisory Opinions into USPAP.

49.

See Statement on Appraisal Standards No. 3, Retrospective Value Opinions, and Statement on Appraisal Standards No. 4, Prospective Value Opinions.

50.

See Advisory Opinion 28, Scope of Work Decision, Performance, and Disclosure, and 29, An Acceptable Scope of Work. References to Advisory Opinions are for guidance only and do not incorporate Advisory Opinions into USPAP.

51.

See Advisory Opinion 2, Inspection of Subject Property. References to Advisory Opinions are for guidance only and do not incorporate Advisory Opinions into USPAP.