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Supervisors, Trainees, and Standards Rules

Supervisors, Trainees, and Standards Rules. Chapter 4. Chapter Objectives. Describe certain Standards Rules of USPAP and how they relate to supervisory appraisers and trainee appraisers. Define Advisory Opinion 31 and how it relates to supervisory appraisers and trainee appraisers.

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Supervisors, Trainees, and Standards Rules

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  1. Supervisors, Trainees, and Standards Rules Chapter 4

  2. Chapter 4: Supervisors, Trainees, and Standards Rules Chapter Objectives • Describe certain Standards Rules of USPAP and how they relate to supervisory appraisers and trainee appraisers. • Define Advisory Opinion 31 and how it relates to supervisory appraisers and trainee appraisers. • Supervising the Trainee Appraiser: National Regulations and Responsibilities (091014) See Page(s) xx-xx 2

  3. Chapter 4: Supervisors, Trainees, and Standards Rules Overview of STANDARD 1 • Contains six Standards Rules (1-1 through 1-6) • Standards Rule 1-1 elaborates on requirements found in the COMPETENCY RULE • Standards Rule 1-1(a): Methods and Techniques • Addresses the obligation to keep current with methods and techniques • Standards Rule 1-1(b): Errors of Omission or Commission • Describes the obligation to not commit errors • Standards Rule 1-1(c): Carelessness and Negligence • Describes the obligation to not be careless or negligent

  4. Chapter 4: Supervisors, Trainees, and Standards Rules Overview of STANDARD 2 • STANDARD 2 addresses the obligations of an appraiser for reporting a real property appraisal and correlates with Step 6 in the appraisal process. • Standards Rule 2-1: General Obligations • Contains general obligations for all written and oral real property appraisal reports • Standards Rule 2-3: Signed Certification and Non-Real Property Assets and Work Done by Others • Instructs all written real property appraisal reports (for both reporting options) must contain a signed certification containing language similar to the example provided • The next portion of the Comment applies when the assignment additionally includes opinions or conclusions related to non-real property assets.

  5. Chapter 4: Supervisors, Trainees, and Standards Rules USPAP FAQs • USPAP FAQ 252 • USPAP FAQ 255 • USPAP FAQ 248 • USPAP FAQ 253

  6. Chapter 4: Supervisors, Trainees, and Standards Rules Standards Rule 3-6 • Presents the certification requirements for an Appraisal Review Report, which is similar to the certification requirements found in STANDARD 2 • The Comment to Standards Rule 3-6 is very similar to that found in Standards Rule 2-3, with the exception that the Comment to Standards Rule 3-6 specifically warns that appraisal review is a completely different activity than cosigning a report, such as when a supervisory appraiser cosigns with a trainee.

  7. Chapter 4: Supervisors, Trainees, and Standards Rules Advisory Opinion 31: More than One Appraiser • Provides further insight into circumstances when there is more than one appraiser involved in an assignment. • Applies to real property, personal property, and intangible property. • AO-31 addresses the issue with clarification and guidance in the form of: • Relevant USPAP References • Record Keeping Requirements • Certifications/Signatures • Illustrations • Illustration 1 • Illustration 2 • Illustration 3 • Illustration 4 • Illustration 5 • Illustration 6

  8. Chapter 4: Supervisors, Trainees, and Standards Rules Key Terms • Report

  9. Chapter 4: Supervisors, Trainees, and Standards Rules Summary • STANDARD 1 establishes a benchmark of criteria for measuring ethics and competency in the development process and contains six Standards Rules (1-1 through 1-6) that identify applicable requirements and guidance for developing an appraisal of real property. • STANDARD 2 addresses the obligations of an appraiser for reporting a real property appraisal. • The names of individuals providing significant real property appraisal assistance who do not sign a 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 Standards Rule 2-2 (a)(vii) or (b)(vii), as applicable. • The Comment to Standards Rule 3-6 is very similar to that found in Standards Rule 2-3, with the exception that the Comment to Standards Rule 3-6 specifically warns that appraisal review is a completely different activity than cosigning a report, such as when a supervisory appraiser cosigns with a trainee. • AO-31 addresses the issue with clarification and guidance in the form of relevant USPAP references, record keeping requirements, certifications/signatures, illustrations.

  10. Chapter 4: Supervisors, Trainees, and Standards Rules Chapter 4 Quiz 1. STANDARD 1 of USPAP establishes a benchmark of criteria for measuring __________ and __________ in the appraisal development process. • compliance; certification • depth; detail • ethics; competency • methods; techniques

  11. Chapter 4: Supervisors, Trainees, and Standards Rules Chapter 4 Quiz 2. An important point from STANDARD 1 of USPAP for Trainee Appraisers to remember is that an appraiser cannot simply maintain the skills and the knowledge they initially possessed; they must • accept assignments beyond their market area. • always have a mentor for whom to rely upon. • continuously improve their skills to remain proficient. • meet with their scheduled training group to log joint discussion hours.

  12. Chapter 4: Supervisors, Trainees, and Standards Rules Chapter 4 Quiz 3. According to the Comment accompanying the Introduction of STANDARD 2, the form, format, and style of a report are specific to the • development steps undertaken in the assignment. • needs of intended users and appraisers. • scope of work determined necessary in an assignment. • type of property that is the subject of the appraisal.

  13. Chapter 4: Supervisors, Trainees, and Standards Rules Chapter 4 Quiz 4. Standards Rule 2-1 contains general obligations for all written and oral real property appraisal reports, including a specific obligation that all ___________ used in the assignment must be clearly and accurately disclosed. • assumptions, extraordinary assumptions, hypothetical conditions, and limiting conditions • confidential elements and the sources of confidential information • data and verification sources • non-appraiser personnel and administrative assistance

  14. Chapter 4: Supervisors, Trainees, and Standards Rules Chapter 4 Quiz 5. The Comment for Standards Rule 2-2(a)(vii), for the Appraisal Report option, advises that when any portion of the work involves significant real property appraisal assistance, the appraiser must _________ the extent of that assistance. • detail • discuss • state • summarize

  15. Chapter 4: Supervisors, Trainees, and Standards Rules Chapter 4 Quiz 6. STANDARD 2 contains specific content requirements for a real property appraisal report. As an overall obligation, Standards Rule 2-1 requires that appraisal reports contain ________ to enable intended users to understand the report properly. • definitions of appraisal terms • exhibits and photographs • simple and common language • sufficient information

  16. Chapter 4: Supervisors, Trainees, and Standards Rules Chapter 4 Quiz 7. The Comment to Standards Rule 3-6 is very similar to that found in Standards Rule 2-3. The one exception is the Comment to Standards Rule 3-6, specifically warning that • appraisal review is a completely different activity than cosigning a report. • no significant assistance may be disclosed in an appraisal review report. • supervisors and trainees must take responsibility for the elements of the work being reviewed. • trainees must always sign an appraisal review report.

  17. Chapter 4: Supervisors, Trainees, and Standards Rules Chapter 4 Quiz 8. Advice issued by the ASB indicates that if a trainee appraiser is asked by his or her supervisory appraiser to make changes to assignment results that were developed by the trainee for which the trainee does not agree, the trainee must • disassociate himself or herself from the supervisory appraiser. • include a statement to that effect in the report. • not sign the certification or the report. • notify the Appraisal Practices Board.

  18. Chapter 4: Supervisors, Trainees, and Standards Rules Chapter 4 Quiz 9. For a Restricted Appraisal Report, in addition to naming those providing significant assistance in the certification, the extent of that assistance must be ______ in the report. • detailed • discussed • stated • summarized

  19. Chapter 4: Supervisors, Trainees, and Standards Rules Chapter 4 Quiz 10. Standards Rule 3-6 states that each ______________ must contain its own signed certification. • Appraisal Review Report • Letter of Transmittal • Narrative Summary Report • Scope of Work Designation

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