Chapter 539-3 STANDARDS FOR APPRAISALS
Rule 539-3-.01 Federally Related Transactions
| (1) | A federally related transaction is any real estate related financial transaction that (A) a federal financial institutions regulatory agency or the Resolution Trust Corporation engages in, contracts for, or regulates; and (B) requires the services of an appraiser. |
| (2) | In developing and reporting an appraisal of real property in a federally related transaction, an appraiser must comply with the standards required by the federal financial institutions regulatory agency that regulates the financial transaction for which the appraisal assignment was undertaken. For each appraisal assignment, it is the responsibility of the appraiser to determine what standards a federal financial institutions regulatory agency requires. |
| (3) | In developing and reporting an appraisal of real property in a federally related transaction,an appraiser must take reasonable efforts to identify and report (a) the identity of the current owner of the property, (b) whether the property is listed for sale and identify and state in the appraisal report all list prices within the preceding year reported by reliable sources, (c) whether the property is under contract for sale, and (d) whether the property has sold or had deed transfer within the last three years prior to the effective date of the appraisal. |
| (4) | While documenting compliance with this
requirement may be met in a variety of ways, an appraiser who attaches to the
appraisal report the following items, obtained contemporaneously with the
appraisal, shall be deemed to have met the requirements of this rule:
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Rule 539-3-.02 Standards for Developing and Reporting an Appraisal
| (1) | In developing and reporting an appraisal
of real property, an appraiser shall not:
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| (2) | An appraiser who signs a real property appraisal report prepared by another accepts full responsibility for the appraisal and the contents of the appraisal report. |
| (3) | On the effective date
of this Rule amendment and in anticipation of a change in USPAP published as
the Fourth Exposure Draft of proposed changes to the 2016-2017 Edition of it by
the Appraisal Standards Board to become effective January 1, 2016, the physical
characteristics of real estate appraised shall not be considered assignment
results. Examples of the physical characteristics include size, functional
utility, physical conditions, and quality of the real estate appraised. An
appraiser shall not disclose appraisal assignment results or confidential
information found in an appraisal to anyone other than:
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| (4) | In developing and reporting an appraisal of real property in a non-federally related transaction; an appraiser must take reasonable steps to identify and report (a) the identity of the current owner of the property, (b) whether the property is listed for sale and identify and state in the appraisal report all list prices within the preceding year, (c) whether the property is under contract for sale, and (d) whether the property has sold within the last three years prior to the effective date of the appraisal. |
| (5) | While documenting compliance with the
requirements of paragraph (4) above may be accomplished in a variety of ways,
an appraiser who attaches to the appraisal report the following items, obtained
contemporaneously with the appraisal, shall be deemed to have met the
requirements of this rule:
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| (6) | When a client
of an appraiser requests an appraisal of a property that was the subject of an
appraisal performed by that appraiser for a different client and intended
user(s) with a new effective date and if the appraiser uses any data from the
original appraisal in the appraisal for the new client, then, unless the
appraiser expressly provides a credible real estate appraisal justification in
the appraisal report, the appraiser must, at a minimum:
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Rule 539-3-.03 Review of Appraisals
| (1) | An appraisal review assignment shall consist of developing and reporting an opinion of the quality of another appraiser's work. |
| (2) | In
undertaking an appraisal review assignment, the appraiser must:
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| (3) | Anytime an appraiser develops and reports an opinion of value that agrees or disagrees with the opinion of value developed and reported in an appraisal assignment performed by another appraiser, that opinion is an appraisal, not a review of an appraisal. When the purpose of an appraisal review assignment also requires that the appraiser develop an opinion of value of the subject of the review assignment, that requirement must be identified in the purpose and scope of work of the appraisal review assignment and the appraiser must comply with the applicable standards for developing an appraisal. |
Rule 539-3-.04 Standards for Developing and Reporting an Evaluation Appraisal
In lieu of and notwithstanding anything to the contrary found in Rules 539-3-.01 and 539-3-.02 herein, if an appraiser performs an Evaluation Appraisal, as hereinafter defined, the appraiser shall perform such appraisal subject to the following requirements:
| (1) | An "Evaluation Appraisal" is defined as
follows:
An appraisal which is limited in its scope and development to the requirements for Evaluations as set forth for a lender by a federal financial institutions regulatory agency or any nonfederal financial institutions regulatory agency as the case may be and as defined in and consistent with the Interagency Appraisal and Evaluation Guidelines ("Evaluation Guidelines") promulgated by the Office of the Comptroller of the Currency, et al., effective December 10, 2010. |
| (2) | Transactions for which an Evaluation
Appraisal is permitted:
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| (3) | Development of
Evaluation Appraisals:
At a minimum, the Evaluation Appraisal shall contain the following:
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| (4) | If the Evaluation Appraisal is prepared for a nonfederal financial institution and said institution is not regulated by a federal financial institutions regulatory agency, and if USPAP compliance is not required by said institution for the appraisal reporting format, then the Evaluation Appraisal may be prepared in any reporting format, such as, but not limited to a self-contained appraisal report, a summary appraisal report, and a restricted use appraisal report if the reporting format meets the requirements of the nonfederal financial institution. |
| (5) | Certification. The Evaluation Appraisal
report shall include the following items in language substantially similar to
the following: 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, unbiased professional analyses, opinions, and conclusions. - 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 or bias with respect to the parties involved. - I have no bias with respect to the property that is the subject of this report or to the parties involved in this assignment. - my engagement in this assignment or in any future assignment is not contingent upon developing or reporting predetermined results. - my compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value estimate, the attainment of a stipulated result, or the occurrence of a subsequent event. - my analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Georgia Real Estate Appraiser Classification and Regulation Act and the Rules and Regulations of the Georgia Real Estate Appraisers Board. - 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 the report, this certification must clearly specify which individuals did and which individuals did not make a personal inspection of the appraised property.) - no one provided significant professional assistance to the person signing this report. (If there are exceptions, the name of each individual providing significant professional assistance must be stated and the professional assistance provided must be disclosed.) |