Relevant USPAP & Advisory References (AO-19)

Appraisers receiving requests for services that include the kind of information and situations described in the Background section of this Advisory Opinion should carefully review:

• The Conduct and Management sections of the ETHICS RULE, particularly in regard to assignments offered under condition of “predetermined opinions or conclusions” or compensation conditioned on the reporting of a predetermined value result, a direction in assignment results that favors the cause of the client, the amount of a value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the appraiser’s opinions and specific to the assignment’s purpose.

• The definitions of “Appraisal,” “Appraisal Practice,” “Assignment” and “Scope of Work” in the DEFINITIONS section of USPAP.

• Standards Rule1-1(b), particularly as it relates to diligence in the level of research and analysis necessary to develop credible opinions and conclusions.

• Standards Rules 1-2(f), (g), and (h), regarding identification of the scope of work necessary to complete an assignment and any extraordinary assumptions or hypothetical conditions necessary in an assignment.

• Standards Rules 1-5(a) and (b), regarding the analysis of current or historical market activity regarding the property appraised.

• The SCOPE OF WORK RULE, with particular attention to the appraiser’s responsibility in connection with the scope of work decision and disclosure obligations.

• As guidance, Advisory Opinions AO-11, 12, and 13.

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