STANDARD 3.

In reviewing an appraisal and reporting the results of that review, an appraiser must form an opinion as to the adequacy and appropriateness of the report being reviewed and must clearly disclose the nature of the review process undertaken.

Comment: The function of reviewing an appraisal requires the preparation of a separate report or a file memorandum by the appraiser performing the review setting forth the results of the review process. Review appraisers go beyond checking for a level of completeness and consistency in the report under review by providing comment on the content and conclusions of the report. They may or may not have firsthand knowledge of the subject property or of data in the report. The COMPETENCY PROVISION applies to the appraiser performing the review as well as the appraiser who prepared the report under review.

Reviewing is a distinctly different function from that addressed in Standards Rule 2-5. To avoid confusion in the marketplace between these two functions, review appraisers should not sign the report under review unless they intend to take the responsibility of a co-signer.

Review appraisers must take appropriate steps to indicate to third parties the precise extent of the review process. A separate report or letter is one method. Another appropriate method is a former checklist prepared and signed by the appraiser conducting the review and attached to the report under review. It is also possible that a stamped impression on the appraisal report under review, signed or initialed by the reviewing appraiser, may be an appropriate method for separating the review function from the actual signing of the report. To be effective, however, the stamp must briefly indicate the extent of the review process and refer to a file memorandum that clearly outlines the review process conducted.

The review appraiser must exercise extreme care in clearly distinguishing between the review process and the appraisal or consulting processes. Original work by the review appraiser may be governed by STANDARD 1 or STANDARD 4 rather than this standard. A misleading or fraudulent review and/or report violates the ETHICS PROVISION.

Standards Rule 3-1.

In reviewing an appraisal, an appraiser must:

1. (a) identify the report under review, the real estate and real property interest being appraised, the effective date of the opinion in the report under review, and the date of the review;
2. (b) identify the extent of the review process to be conducted;

3. (c) form an opinion as to the completeness of the report under review in light of the requirements in these standards;

   Comment: The review should be conducted in the context of market conditions as of the effective date of the opinion in the report being reviewed.

4. (d) form an opinion as to the apparent adequacy and relevance of the data and the propriety of any adjustments to this data;
5. (e) form an opinion as to the appropriateness of the appraisal methods and techniques used and develop the reasons for any disagreement;

6. (f) form an opinion as to whether the analyses, opinions, and conclusions in the report under review are appropriate and reasonable, and develop the reasons for any disagreement.

   1. 1. satisfies the requirements of STANDARD 1;
   2. 2. identifies and sets forth any additional data relied upon and the reasoning and basis for the different estimate of value; and

   3. 3. clearly identifies and discloses all assumptions and limitations connected with the different estimate of value to avoid confusion in the marketplace.

      Standards Rule 3-2.

      In reporting the results of an appraisal review, an appraiser must:

   Comment: Departure from binding requirements (a) through (f) above is not permitted.

   An opinion of a different estimate of value from that in the report under review may be expressed, provided the review appraiser:

7. (a) disclose the nature, extent, and detail of the review process undertaken;
8. (b) disclose the information that must be considered in Standards Rule 3-1(a)(b);
9. (c) set forth the opinions, reasons, and conclusions required in Standards Rule 3-1(c)(d)(e)(f);
10. (d) include all known pertinent information;

11. (e) include a signed certification similar in content to the following:

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

    - the facts and data reported by the review appraiser and used in the review process are true and correct.

    - the analyses, opinions, and conclusions in this review report are limited only by the assumptions and limiting conditions stated in this review report, 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.

    - my compensation is not contingent on an action or event resulting from the analyses, opinions, or conclusions in, or the use of, this review report.

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

    - I did not (did) personally inspect the subject property of the report under review.

    - no one provided significant professional assistance to the person signing this review report. (If there are exceptions, the name of each individual providing significant professional assistance must be stated).

    Comment: Departure from binding requirements (a) through (e) above is not permitted.