May 26, 2018 - 07:06 AM
2018-02: RECORD KEEPING RULE
Workfile Requirements When Communicating Assignment Results
I was engaged to perform an appraisal of a single-unit residential property for a mortgage lending transaction. After inspecting the property and collecting the necessary data, I concluded that the highest and best use was as a two-unit dwelling. I informed the client of this conclusion prior to completing the appraisal and the client then canceled the assignment. Since there was no appraisal performed and no appraisal report transmitted, must a workfile be kept for the prescribed timeframes?
Yes. The RECORD KEEPING RULE states, “An appraiser must prepare a workfile for each appraisal or appraisal review assignment.” The Rule is not limited to completed assignments or to assignments in which a report was transmitted. In fact, it specifies that the workfile “must be in existence prior to the issuance of any report or other communication of assignment results.”