2016_Yellowbook_ScopeOfWorkCheatSheet Updated 10-5-2018~25.pdf

2016 UASFLA Standards Scope of Work cheat sheet

The first step in the appraisal process is to identify the appraisal problem to be solved. To do so, the appraiser and the client must address seven critical assignment elements presented in the Uniform Appraisal Standards for Federal Land Acquisitions (UASFLA) Section 1.2. (Scope of Work). 2.3.1.8 Description of Scope of Work states the appraiser shall use this section of the report to identify the seven (7) critical elements that defined the appraisal problem to be solved.

1. Client (1.2.1) o Provided in the Statement of Work (SOW)

2. Intended users (1.2.2) o Provided in SOW

3. Intended use (1.2.3) o Provided in SOW

4. Type of Opinion and definition of value (1.2.4) o Provided in SOW, must use definition 1.2.4 for federal acquisitions

5. Effective date (1.2.5) o Typically is the last date of inspection

6. Relevant characteristics about the subject property (1.2.6) also referred to as property characteristics (2.3.1.8) o Property Interest(s) to be appraised (1.2.6.1) Provided in SOW o Legal description (1.2.6.2) Provided in SOW

• Appraiser should still verify the legal description o On the ground during a physical inspection of the property o With the owner of the property (if possible) o Comparing it with aerial or other available maps o Comparing it with public records

There is no reporting requirement of the actual legal description in this section of the report as it is required to be reported under the factual data section. However, it would be helpful to report the legal description was provided and verified to be accurate. If the appraiser discovers a significant error or inconsistency the appraiser should consult the client for clarification before proceeding with the appraisal.

o Property Inspections (1.2.6.3) The appraiser (the lead/contracted appraiser) must personally inspect the subject property o Contacting landowners (1.2.6.4)

During the course of inspecting the subject property, the appraiser is expected to meet with property owner or representative, if possible

• Contact information provided in SOW The owner or owner’s designated representative must be given an opportunity to accompany the appraiser on the property inspection

7. Assignment conditions (1.2.7) o Instructions, hypothetical conditions, extraordinary assumptions (1.2.7.1) Includes any special instructions which are typically in writing and provided in the SOW Only hypothetical conditions and extraordinary assumptions provided in the SOW are to be included

2016 UASFLA Standards Scope of Work cheat sheet o The appraiser has the burden of clearly identifying and explaining the implications of any hypothetical condition or extraordinary assumption adopted. The required explanation and discussion of the implications of such hypothetical conditions or extraordinary assumptions must be included in this portion of the appraisal report. Each hypothetical condition and extraordinary assumption must be labeled as such and any legal instructions must be included in the addenda of the report. (2.3.1.8) o Jurisdictional Exceptions (1.2.7.1.2) Provided in SOW o See 1.2.7.3 through 1.2.7.6 for additional items considered part of the assignment conditions o Larger Parcel (1.2.7.3.1) Essential to the appraiser's conclusion of highest and best use is the determination of the larger parcel. The appraiser must make a larger parcel determination in every appraisal conducted under these standards, even in minor partial acquisitions in which the appraiser is instructed not to do a complete before and after appraisal.

o Unit Rule (1.2.7.3.2) The unit rule requires valuing the property as a whole rather than the sum of the values of the various interests into which it has been carved - such as lessor and lessee, or life tenant and the holder of the remainder. This requirement holds true in circumstances where the physical components of the property are held under different ownership such as the surface estate, mineral rights, water rights, or timber. Even when the physical components of a property are under the same ownership, it is improper to separately value the various components (improvements, minerals, standing timber, crops, and land) and then add them up. This procedure results in an improper summation or cumulative appraisal, which is inconsistent with both federal appraisal standards and USPAP.

o

Additional reporting requirements under scope of work:

• Should describe:

o The investigation and analysis in developing the appraisal o The geographical area and time span searched for market data o Include a description of the type of market data researched and the extent of market data confirmation o State references and data sources relied upon in developing the appraisal

• Shall discuss:

o The applicability of all approaches o The exclusion of any approach to value