The definition for ASSIGNMENT CONDITION will not exist until the 2018 – 2019 USPAP publication goes into effect, but where have we seen this term? Previously it was referenced in the SCOPE OF WORK RULE.
Are you ready for some tongue-in-cheek? You think the ASB needed to fill the void left behind in the USPAP publication when they eliminated the definition for ASSUMPTION? Probably not. In fact, it was to clarify what the term meant and the appraiser’s responsibility when accepting assignments.
This is part of a package deal where the ASB is clarifying an appraiser’s obligations prior to agreeing to perform an assignment. Included in this package are revisions to the definition of Assignment, Intended Use, and Intended User.
The following is a new definition for ASSIGNMENT CONDITIONS:
ASSIGNMENT CONDITIONS: Assumptions, extraordinary assumptions, hypothetical conditions, laws and regulations, jurisdictional exceptions, and other conditions that affect the scope of work.
Comment: Laws include constitutions, legislative and court-made law, administrative rules, and ordinances. Regulations include rules or orders, having legal force, issued by an administrative agency.
First, let’s take a look at the new definition for ASSIGNMENT: 1) An agreement between an appraiser and a client to provide a valuation service; 2) the a valuation service that is provided by an appraiser as a consequence of an agreement with a client such an agreement.
ASSIGNMENT: A valuation service that is provided by an appraiser as a consequence of an agreement with the client.
Concise, clean, streamline, easy-to-understand! Although, you won’t find a definition anywhere else that defines an assignment as a valuation service, making this a term-of-art that you may want to include in a definitions section of your appraisal addendum’s.
Anytime you have a definition that’s a term-of-art, something that’s germane to a specific profession, it’s a good idea to include them in a definitions page; you may consider having a page that has acronyms and definitions. Your addendum is a good place to house a definition/acronym page.
Two thumbs up to the ASB, I personally believe there should be more definitions in the USPAP publication to ensure clear understanding of our appraisal reports and help maintain the public trust in the appraisal profession.
May your assignment conditions be warm and sunny with a light ocean breeze.
Good luck and do good work