1. When Assistance is Provided by Others
USPAP Obligations of the
Primary and Assisting Appraisers
by David J. Maloney, Jr., AOA CM

2. Introduction
ASB response to query generated questions regarding USPAP obligations when assistance provided by others
What if the individual providing assistance is not an “appraiser?”
If an appraiser, what if the assistance provided was not “appraisal” assistance?
What if the assistance provided was not deemed “significant”?
© 2010 David J. Maloney, Jr., AOA CM

3. Five Scenarios
Obligations partially clarified in USPAP’s Advisory Opinion 31 Assignments Involving More than One Appraiser
Personal property appraisers obtain appraisal and non-appraisal assistance from:
Other appraisers, and
Non-appraisers
© 2010 David J. Maloney, Jr., AOA CM

4. Five Scenarios
Two appraisers working together on an assignment as equals
A specialist appraiser contributing significantly to an assignment from within his or her specialty areas
An appraiser who contributes in a non-significant manner
A staff appraiser whose assistance is relied upon by the primary appraiser
A non-appraiser consultant/expert who contributes to an assignment
© 2010 David J. Maloney, Jr., AOA CM

5. Relevant USPAP references:
USPAP DEFINITIONS
SCOPE OF WORK RULE
Record Keeping section of the ETHICS RULE
Standards Rule 8-2
Standards Rule 8-3
Advisory Opinion (AO) 31 Assignments Involving More than One Appraiser
FAQ #219 Significant Appraisal Assistance
FAQ #224 Multi-Discipline Certification
FAQ #225 Relying on the Reports of Others
© 2010 David J. Maloney, Jr., AOA CM

6. Three issues of importance
Assistance provided by
Appraisers
Non-appraisers
Was the assistance provided by an appraiser or by a non-appraiser?
If provided by an appraiser, was it appraisal assistance?
If provided by an appraiser, was the assistance significant?
© 2010 David J. Maloney, Jr., AOA CM —

7. Was the assistance provided by an appraiser or by a non-appraiser?
Properly trained as an appraiser?
One who is expected to perform valuation services competently and in a manner that is independent, impartial, and objective.
Trained in: appraisal theory, principles and methodology, and in generally accepted appraisal standards, such as USPAP.
Without such training, one is considered a “non-appraiser,” e.g., estate liquidators, auctioneers, experts, and dealers
© 2010 David J. Maloney, Jr., AOA CM —

8. If provided by an appraiser, was it appraisal assistance?
Of or pertaining to appraising and related functions such as appraisal practice or appraisal services.
Related to the appraisal process or requires appraiser competency.
© 2010 David J. Maloney, Jr., AOA CM —

9. If provided by an appraiser, was the assistance significant?
Assistance takes many forms; can be classified as significant or minor
Primary appraiser must determine if assistance was significant
Consider assistance significant:
If it contributed in a noteworthy way to primary appraiser’s value conclusion
If assistance caused primary appraiser to significantly change his or her own opinions
© 2010 David J. Maloney, Jr., AOA CM —

10. Primary Appraiser’s USPAP Obligations when Another Appraiser Provides Assistance
Provided significant appraisal assistance
Identify assisting appraiser in the USPAP certification (not required if the assisting appraiser also signs the certification), and
State elsewhere in the report the extent of the significant personal property appraisal assistance that was provided
Degree of identification depends on which reporting option was used by the primary appraiser
E.g., Summary Appraisal Report option requires appraisal assistance be “summarized”
© 2010 David J. Maloney, Jr., AOA CM —

11. Primary Appraiser’s USPAP Obligations when Another Appraiser Provides Assistance
Provided non-significant appraisal assistance
Do not name the appraiser in the certification statement
May choose to mention the assistance provided in the scope of work statement if doing so would
Contribute to a more meaningful understanding of the scope of work performed
Is considered prudent in order to document the extent of primary appraiser’s diligence
© 2010 David J. Maloney, Jr., AOA CM —

12. Assisting Appraiser’s USPAP Obligations when Providing Assistance
Obligations depend on type of appraisal service provided
Rises to level of appraisal or appraisal review
General obligations of USPAP which include:
DEFINITIONS
PREAMBLE
ETHICS RULE (Conduct, Management and Confidentiality sections only), COMPETENCY RULE, JURISDICTIONAL EXCEPTION RULE
Relevant STANDARDS (STANDARD 3 for appraisal reviews; STANDARDS 7 and 8 for appraisals)
SCOPE OF WORK RULE, and
Record Keeping section of the ETHICS RULE (workfile maintenance, accessibility and retention)
© 2010 David J. Maloney, Jr., AOA CM —