Compilation of Rules and Regulations of the State of Georgia › Department 539 - RULES OF GEORGIA REAL ESTATE APPRAISERS BOARD › Chapter 539-3 - STANDARDS FOR APPRAISALS › Rule 539-3-.02 - Standards for Developing and Reporting an Appraisal

Current through Rules and Regulations filed through June 27, 2024
(1) In developing and reporting an appraisal of
			 real property, an appraiser shall not:
(a)
			 perform any appraisal assignment beyond the scope of authority granted in the
			 appraiser classification held;
(b)
			 fail to disclose clearly and accurately the appraiser classification and number
			 granted to the appraiser by the state;
(c) fail to employ correctly methods and
			 techniques that are necessary to produce a credible appraisal. Unless the
			 appraiser expressly provides a credible real estate appraisal justification in
			 the appraisal report, the appraiser may not vary from the following guidelines:
1. appraisers reaching a conclusion of value
			 for a real property must:
a. Obtain all data
			 used in every appraisal from a reliable source and verify that data from at least
			 one additional reliable source. For purposes of this Chapter a reliable source
			 shall be one typically utilized by appraisers in the area and includes, but is
			 not limited to, a personal inspection by the appraiser; publicly filed records;
			 property tax records; an appropriate local multiple listing service; and
			 commercially available data based and publications reasonably relied upon by
			 appraisers in the ordinary course of their business.
An appraiser may also rely upon information obtained from real
				estate appraisers, brokers, closing attorneys, sellers, and buyers provided that
				the appraiser maintains (1) documentation of any information obtained from
				appraisers, brokers, closing attorneys, sellers, and buyers and (2) the name and
				telephone number and/or address of each source in the appraiser's file for at
				least five years;
b. Obtain
			 for the appraiser's file the Tax Assessor's 100% market value;
c. identify and state in the appraisal report
			 any list prices of the property if listed within the preceding year reported by
			 reliable sources; and
d. comment on
			 the impact on the market value of the subject of foreclosure activity in the
			 market area of the subject property.
2. appraisers utilizing the market approach for
			 reaching a conclusion of value for a real property must:
a. identify and describe the market area as a
			 geographic location;
b. select
			 comparable properties that are the most recent sales and that reflect current
			 market conditions for valuation of the subject property. Absent a credible real
			 estate appraisal explanation for a different definition of most recent sales,
			 most recent sales shall be within one year and in the market area. The most
			 recent sales shall be presumed to be properties that have sold within the
			 preceding year of the
effective
date of the appraisal;
c. select comparable properties for valuation
			 of a residential property that require the net total of any adjustments to the
			 sales price of a comparable sale not to exceed 15% and the gross total of all
			 adjustments (whether positive or negative) not to exceed 25%, absent a credible
			 real estate appraisal explanation for differing adjustments;
d. select comparable properties for valuation
			 of a property that are located within the market area of the subject. Absent a
			 credible real estate appraisal explanation for a different market area, the
			 market area for residential properties shall be presumed to be comparable
			 properties located first within the same subdivision as the subject and second
			 located within one mile of the subject;
e. list in the appraisal report any sale of the
			 subject property held within the preceding three (3) years of the appraisal's
			 effective date including the date of sale and sales price. In addition, comment
			 on or explain if any sale occurred within six (6) months of a previous sale
			 within said three (3) year period when the sales price increased more than 25% of
			 the previous sales price;
f. list in
			 the appraisal report any sales of comparable properties used in said report held
			 within the preceding one (1) year of the comparable properties last date of sale
			 including the previous date of sale and sales prices. In addition, comment on or
			 explain if any sale occurred within six (6) months of a previous sale within said
			 one (1) year period when the sales price increased more than 25% of the previous
			 sales price.
g. state the exposure
			 time indicated by the market.
3. appraisers utilizing the cost approach for
			 reaching a conclusion of value for a real property must include in the appraisal
			 report the relevant replacement cost data from a source reasonably relied upon by
			 appraisers in the ordinary course of their business. Said source must be
			 identified by title on the appraisal report;
4. appraisers utilizing the income approach for
			 reaching a conclusion of value for a real property shall identify in the
			 appraisal report the source of any income data used in the appraisal report;
			 identify any ownership or other interest which such source has in the subject
			 property; and maintain in the appraiser's file for a period of five years written
			 verification of such income data.
(d) commit a substantial error of omission or
			 commission that significantly affects the appraisal;
(e) render appraisal services in a careless or
			 negligent manner;
(f) communicate the
			 appraiser's analyses, opinions, or advice in a manner that is misleading to the
			 client;
(g) fail to include in a
			 report of an appraisal sufficient information to enable the person(s) who are
			 expected to receive or rely on the report to understand it properly;
(h) perform an independent appraisal assignment
			 with partiality or an accommodation of personal interest;
(i) accept an independent appraisal assignment
			 when the employment itself is contingent upon the appraiser's reporting a
			 predetermined estimate, analysis, valuation, or opinion or where the fee to be
			 paid is contingent upon the opinion, conclusions, analysis, or valuation reached
			 or upon the consequences resulting from the appraisal assignment;
(j) perform any appraisal assignment without
			 (1) disclosing any lack of knowledge and/or experience to the client before
			 accepting the assignment; (2) taking all steps necessary to complete the
			 assignment competently; (3) describing the lack of knowledge and/or experience
			 and the steps taken to complete the assignment competently in the appraisal
			 report; and (4) having the client expressly identify any other persons or
			 entities that the client expects to rely on the appraisal report;
(k) report the results of a real property
			 appraisal without disclosing the nature, extent, and detail of the appraisal
			 processes undertaken;
(l) fail to
			 disclose clearly and accurately in the appraisal report any assumption or any
			 limiting condition that directly affects the appraisal and to indicate its impact
			 on value;
(m) fail to include in an
			 appraisal report a certification that includes the following items in language
			 substantially similar to the following:
I certify that, to the best of my knowledge and belief:
- the statements of fact contained in this report are true and
				correct.
- the reported analyses, opinions, and conclusions are limited
				only by the reported assumptions and limiting conditions, and are my personal,
				unbiased professional analyses, opinions, and conclusions.
- I have no (or the specified) present or prospective interest in
				the property that is the subject of this report, and I have no (or the specified)
				personal interest or bias with respect to the parties involved.
- I have performed no (or the specified) services, as an
				appraiser or in any other capacity, regarding the property that is the subject of
				this report within the three year period immediately preceding acceptance of this
				assignment.
- I have no bias with respect to the property that is the subject
				of this report or to the parties involved in this assignment.
- my engagement in this assignment or in any future assignment is
				not contingent upon developing or reporting predetermined results.
- my compensation is not contingent upon the reporting of a
				predetermined value or direction in value that favors the cause of the client,
				the amount of the value estimate, the attainment of a stipulated result, or the
				occurrence of a subsequent event.
- my analyses, opinions, and conclusions were developed, and this
				report has been prepared, in conformity with the Georgia Real Estate Appraiser
				Classification and Regulation Act and the Rules and Regulations of the Georgia
				Real Estate Appraisers Board.
- I have (or have not) made a personal inspection of the property
				that is the subject of this report. (If more than one person signs the report,
				this certification must clearly specify which individuals did and which
				individuals did not make a personal inspection of the appraised property.)
- no one provided significant professional assistance to the
				person signing this report.
(If there are exceptions, the name of each individual providing
				significant professional assistance must be stated and the professional
				assistance provided must be disclosed.);
(n) falsify any part of an appraisal
			 report;
(o) fail to maintain at all
			 times direct control of the appraiser's signature and the method by which that
			 signature is affixed to an appraisal report. An appraiser may grant permission to
			 another to affix the appraiser's signature to an appraisal report provided that
			 the permission is in writing, the permission extends to only one specific
			 appraisal report, the writing identifies the report and the amount of the opinion
			 of value, and the appraiser maintains a copy of the written permission in the
			 appraiser's work file. An appraiser shall not grant blanket authority to another
			 person to affix the appraiser's signature to an appraisal report or reports;
			 and
(p) use any uniform residential
			 appraisal report form for reporting appraisal work for any purpose other than to
			 report an appraisal.
(q) Submit or
			 transmit an appraisal report without taking reasonable steps to ensure that the
			 report cannot be altered, modified or otherwise facilitate unlicensed appraisal
			 activity as addressed in O.C.G.A. §
									43-39A-24.
			 Such unlicensed activity may include the alteration or modification of the report
			 by the client, liaison of the recipient, or appraisal management
			 company.
(r) if paid by a third
			 party, fail to include the fee paid for the appraisal assignment and; if ordered
			 by an appraisal management company, the registration number of that appraisal
			 management company.