Mary Cummins, Real Estate Appraiser, Animal Advocates, Los Angeles, California

Mary Cummins, Real Estate Appraiser, Animal Advocates, Los Angeles, California
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Wednesday, January 26, 2022

Bullet Proof Workfile Class by Robert Keller, Florida Real Estate Appraiser Instructor by Mary Cummins Appraiser

Bullet Proof workfile class, real estate appraisal, appraiser, appraisal report, robert keller, florida, real estate appraiser, appraisal, mary cummins, los angeles, california, record keeping rule, ethics rule, uspap

WEDNESDAY, JANUARY 26, 2022 AT 10 AM – 11 AM PST

"Free Workfile class Bullet Proof Workfile 30-45 min by Robert Keller Florida real estate appraiser and instructor. In this informal seminar I will go over what is required to show support for your appraisal report if you find yourself in an investigation by a state agency. I defend appraisers and know what the state is looking for. This will be a Facebook live event." Not sic quote. 

Robert E Keller of REK Realty Advisors started at the top of a 1004 form and went through the entire form stating what records must be kept in the workfile for each data entry, line item in the report. The below is written by me, Mary Cummins. There were no handouts and I missed 15 minutes of the class in the middle.

Per USPAP Record-Keeping Rule, “An appraiser must prepare a workfile for each appraisal or appraisal review assignment. “ “an appraiser who willfully or knowingly fails to comply with the obligations of this RECORD KEEPING RULE is in violation of the Ethics Rule.” It includes "True copies of any written reports, documented on any type of media." It can also be reference to documents in the workfile such as county deeds which are stored someplace else. 

Below is a non-inclusive list of every pdf or paper document you need to save in your workfile. You basically need to save a printout of every document, file, web page, data set you used to fill out any and every part of the report. Appraisers need lots of digital or paper storage capacity. Please, go digital to save trees and lower your carbon footprint. I haven't used paper files since we were allowed to submit pdf reports in the 1990's. Have one folder for each appraisal with all your pdf files inside properly labeled and described. 

The purpose is to create a credible report for your client. Another purpose is to protect the appraiser in case there is a complaint or lawsuit. The better your workfile, the better your report and the better protected you are from complaints and litigation. 

All of these items must be in your workfile and not just in the report.

  • Engagement Letter or email.
  • Order in whatever form.
  • I'd also print out the entire AMC dashboard file page with comments, correspondence, list of documents, dates...after final submission if it's an AMC assignment.
  • Contract which is dated and signed by all parties. If it's not dated and signed by all parties, it's not a valid contract.
  • Copy of every report with every revision. You can "save as" a new raw file with an "a," "b" or date... after it for each revision, clarification request. You could also just save the submitted xml's which generally have a unique number at the end. 
  • Property profile, detail report where you got the size, zone, date built, bed/bath count...
  • Web address, government department, name of report where you got zoning information. I use this for Los Angeles City. Include the title of the zoning report in case the url changes. This link is also in my report. https://planning.lacity.org/odocument/eadcb225-a16b-4ce6-bc94-c915408c2b04/Zoning_Code_Summary.pdf I use this for Los Angeles County https://planning.lacounty.gov/luz/summary/
  • Where you got your FEMA flood map information. If you use Corelogic, a la mode, state a la mode. FYI a la mode is very inaccurate when it comes to flood zones. They even state that in their disclaimer. If you think it's near a flood area, go to the FEMA map online for your county or FEMA direct. An appraiser was sued and reported recently because he relied on a la mode flood maps. He didn't realize they are inaccurate. Three times so far I thought a property was probably in a flood zone but a la mode said no. I went to FEMA maps and they were in flood zones. One property was built over an active creek with bridge access only yet a la mode said it wasn't in a flood zone. This is why you should cite your sources in case your sources are wrong like Corelogic, a la mode.
  • HOA information. Include the HOA questionnaire or summary of conversation with HOA representative i.e. "Appraiser spoke with Jane Doe at ABC Management Company 213 555 1212 which stated there was no pending HOA litigation."
  • It income property, rent control information. In my area we have Los Angeles City, Los Angeles County and California rent control. I include links to the government rent control website information and the information which relates to the subject. 
  • One line MLS search result for subject comparables. This should be a pdf page.
  • MLS print out of comparable listing with interior photos which were used to denote condition of comps. You can print the file to PDF and click "with photos" which will give you all photos smaller.
  • How you figured out adjustments for each comp. Include your xml file, chart, spread sheet. 
  • Previous sales of comps. Print out the detail sheet for your comps. You are going to need a lot of storage capability. Please, don't use paper files.
  • Cost approach. Include the source or url of your cost estimator, estimates such as Marshall and Swift, local developer by name, building-cost.net or whatever you use. Print out the estimate you used. 
  • Anything else you relied upon to produce your report such as Spark, Appraisalmat, MLS... This could be building permits, any documents given to you by the seller or agent, MLS listing printout, property brochure, email from HOA stating HOA dues, budget, lawsuits... I include some of these in the actual report.

This list above is not inclusive. Include anything you relied upon to create the report. The idea is another appraiser should be able to recreate your report based only on your workfile. You must keep your workfile for five years or longer is there was litigation. 

Below are the regulations for record keeping from USPAP. 

"RECORD KEEPING RULE

An appraiser must prepare a workfile for each appraisal or appraisal review assignment. A workfile must be in existence prior to the issuance of any report or other communication of assignment results. A written summary of an oral report must be added to the workfile within a reasonable time after the issuance of the oral report.

The workfile must include:

• the name of the client and the identity, by name or type, of any other intended users;

• true copies of all written reports, documented on any type of media. (A true copy is a replica of the report transmitted to the client. A photocopy or an electronic copy of the entire report transmitted to the client satisfies the requirement of a true copy.);

• summaries of all oral reports or testimony, or a transcript of testimony, including the appraiser’s signed and dated certification; and

• all other data, information, and documentation necessary to support the appraiser’s opinions and conclusions and to show compliance with USPAP, or references to the location(s) of such other data, information, and documentation.

A workfile in support of a Restricted Appraisal Report or an oral appraisal report must be sufficient for the appraiser to produce an Appraisal Report. A workfile in support of an oral appraisal review report must be sufficient for the appraiser to produce an Appraisal Review Report.

An appraiser must retain the workfile for a period of at least five years after preparation or at least two years after final disposition of any judicial proceeding in which the appraiser provided testimony related to the assignment, whichever period expires last.

An appraiser must have custody of the workfile, or make appropriate workfile retention, access, and retrieval arrangements with the party having custody of the workfile. This includes ensuring that a workfile is stored in a medium that is retrievable by the appraiser throughout the prescribed record retention period.

An appraiser having custody of a workfile must allow other appraisers with workfile obligations related to an assignment appropriate access and retrieval for the purpose of:

• submission to state appraiser regulatory agencies;

• compliance with due process of law;

• submission to a duly authorized professional peer review committee; or

• compliance with retrieval arrangements.

Comment: A workfile must be made available by the appraiser when required by a state appraiser regulatory agency or due process of law.

An appraiser who willfully or knowingly fails to comply with the obligations of this RECORD KEEPING RULE is in violation of the ETHICS RULE."

Mary Cummins of Cummins Real Estate is a certified residential licensed appraiser in Los Angeles, California. Mary Cummins is licensed by the California Bureau of Real Estate appraisers and has over 35 years of experience.


Mary Cummins, Mary K. Cummins, Mary Katherine Cummins, Mary, Cummins, #marycummins #animaladvocates #losangeles #california #wildlife #wildliferehabilitation #wildliferehabilitator #realestate #realestateappraiser #realestateappraisal #lawsuit real estate, appraiser, appraisal, instructor, teacher, Los Angeles, Santa Monica, Beverly Hills, Pasadena, Brentwood, Bel Air, California, licensed, permitted, certified, single family, condo, condominium, pud, hud, fannie mae, freddie mac, fha, uspap, certified, residential, certified resident, apartment building, multi-family, commercial, industrial, expert witness, civil, criminal, orea, dre, brea insurance, bonded, experienced, bilingual, spanish, english, form, 1004, 2055, 1073, land, raw, acreage, vacant, insurance, cost, income approach, market analysis, comparative, theory, appraisal theory, cost approach, sales, matched pairs, plot, plat, map, diagram, photo, photographs, photography, rear, front, street, subject, comparable, sold, listed, active, pending, expired, cancelled, listing, mls, multiple listing service, claw, themls, historical appraisal, facebook, linkedin DISCLAIMER: https://mary--cummins.blogspot.com/p/disclaimer-privacy-policy-for-blogs-by.html
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