Truth or Consequences - The Certification Statement

A signed and dated certification statement embodies a declaration of the ethical principles that were followed in the development and reporting of assignment results and constitutes an integral part of the appraisal report. A signed and dated certification statement must be included in any written report, or in the case of an oral report, be retained in the workfile.

Recently, OREA has noted a significant increase in complaint activity involving the last two items typically found in a standard certification statement; the certification related to a personal physical inspection of the subject property and the certification related to reliance on significant professional assistance provided in the preparation of the report.

With one exception (Standard 10-Business Appraisal, Reporting), the appraiser must disclose whether or not he or she completed a personal physical inspection of the subject property. If a principal signing appraiser (or co-signing supervisory appraiser) did not personally physically inspect the subject property, full disclosure of this fact must be clearly stated in the report.

If another licensed appraiser, appraisal trainee, or unlicensed assistant provided significant assistance in the preparation of the report and is not a signatory on the report, the person(s) providing significant assistance must be identified by name, and the extent of the assistance provided must be described in the report.

Falsely certifying that a personal physical inspection of the subject property has been completed when it has not, or not providing recognition of significant professional assistance provided in the preparation of a report when significant assistance has been provided, are both considered serious violations of appraisal ethics. The consequences of signing a false certification, or not providing recognition of significant professional assistance provided in the preparation of a report, can result in disciplinary action by OREA. Disciplinary actions can include public reproval, or in the case of egregious offenses, revocation of licensure.

References:

Uniform Standards of Professional Appraisal Practice (USPAP)

• Standards Rule 2-3
• Advisory Opinion 2 (Inspection of Subject Property Real Estate)
• Advisory Opinion 5 (Assistance in the Preparation of an Appraisal)

Frequently Asked USPAP Questions (available from the Appraisal Foundation)

• Question 153. (Reason for Signed Certification)
• Question 154. (Multiple Signatures on Appraisal Reports)

The California Appraiser, Spring/Summer 2001 (available on-line at OREA's web site)

• Article: "Assistance in the Preparation of an Appraisal"