The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1928-07-21

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Since the soundness Of any judg
nnent as to the buying rice, sell
Ing prices, or use value OF pieces
Of real estate depends upon the &C
cIracy Of the appraisal. and since
the appraisal would be vitiated by
any concealed personal interest on
the part Of the appraiser or by allu
improper handling Of the 1igufes
and factors entering into the ap'
praisaL whether through ignorance
or through actual dishonesty on the
appraisers part. definition OF cor
rect appraisal procedure is Of Rreat
public Importance.
The text OF the code as adopted
by the division is as follows
Article Il. Contingent fees-H e
unethical for an appraiser to accept
an order TO appraise q property. y
his employment Is contingent upon
his reporting a predetermined q
specified amount Of value. or :
\ otherwise contingent upon any find'
AVpg to be reported.
ANArtiele 2. Commissions and fa
NTsIt is unethical for an ap
Atiser tu accept any commission
lAARr or efn0lumeft. IN connectlpn
Hit4 the appraising Of q property
; II
Or The responsibility eItailed and
Ikhe work and expense involved
Aiticle 5. Disinterested apprais-
AIS kt is unethical for an appraiser
kO issue an appraisal report II he e
flactiIlg Of intending to act IN the
d kcaps city Of broker. loan broker. or
/ mari ger. or if he has an ownership.
i Hkemplated future ownership. or
H mi other interest In connection
with the property appraised, unless
SIGH interest or interests be fully
disclosed IN the appraisal certificate.
H Article 4. independent Apprais.
fkis-It is unethical for appraisers
IiNho have been retained to make
n independent appraisals OF prop
4 ertY to collaborate or consult with
one another with reference to the
appraisal, or to make use Of the
findings or figures developed or
reported By any appraiser so re-
tanned.
1t Is unethical for appraisers who
have been retained to collaborate
III the making Of an appraisal to
Issue separate appraisal reports on
the property appraised They should
sign jointly report: OF IL there
be dissenting opinions. these opin.
ions should be made parts 81 4
single document.
Article s. Hypothetical Apprafs-
alsstal It Is unethicaI for an ap.
praiser to issue an appraisal report
on construction project which will
have an Investment or market
value with such value predicated
on assumed rentals and or expenses
ut variance with the probable mar
kek at the time at which the re-
ported value obtains.
% 1t is unethical for an ap-
praiser to issue an appraisal report
on property having an investment
Or market value when such value
II predicated on market rentals
and expenses when existing leases
and or established expenses Of the
property appraised are lower or
higher than the actual or probable
market at the time at which lie
reported value obtains.
lc) 1t is unethical for an APP
praiser to issue an APPRAISAL report
II which the reported value is based
on the completion of public or
private improvements which are
not assured or which in the judg-
ment Of the appraiser. are not highly
probable Of completion.
Id 1t is unethical for an ap-
praiser to issue an appraisal report
IN which the reported value is based
on the assumed absence of any
legal restriction when such restric-
ton Is known to the appraiser
(e) It Is unethical for an ap-
praiser TO issue an appraisal report
in which the reported value is based
on the assumed absence Of any legal
restriction, unless such assumption
IL = L.
legal opinion accepted by the ap-
praiser. and unless the legal All.
tilority and his opinion are quoted
in the appraisal certificate.
~ III is tnethicaI for an appraiser
to issue an appraisal report in which
the reported value is based on the
assumption that the land Tor lease
hold is unimproved. unless the inn
proYeinents are Immediately TO be
removed, or unless the value re-
ported is service, as in the case of
an Industrial site or land occupied
by railway or other public utility.
Article s. Fractional Appraisals:
II is unethical for an appraiser 10
issue an appraisal report on the
market or investment value of q
fractional part Of property.
It is Iflethical for an appraiser to
certify separately the market or in
yestment value of fractional parts
Of q property. The proper form is a
certificate of the value of the prop
erty as a whole, with a distribution
OF this value when desirable or nec-
essary, between its parts.
In appraising the security for
loan It is unethicaI for an appraiser
to issue a certificate covering any
thing less than all of the property
designated as security for the loan.
In particular. in appraising the
security for a leasehold loan, it is
unefhical for an appraiser to issue q
certificate of value of the improve
ments only, emitting the value of the
ieaseho.d, which latter may be posi-.
tive. zero or negative.
Article I. Economic Probabilities
ana investment Value: 1t is un-
ethical for an appraiser to issue an
appraisal report on construction
project which will have an invest.
naent value and report such value
AZ OF normal occupancy without also
reporting his estimate OF net earn.
inus or deficits during the period
from completion to normal occu.
paney.
It is unethical for an appraiser to
issue an appraisal report on a prop
ertv which has an investment value
without also reporting his conclu.
sions as to the earning expectancy
Of the property including his esti.
mate OF the remaining economic life
of the improvements.
III is une.hfcal for an appraiser tC
s.,I H.