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SUBPART B Reference Section §24.103(a)

Appraisal Scope of Work

Notes:

Explanation/Example

SUBPART B Reference Section §24.103(a)

Appraisal Scope of Work

The following criteria from the Uniform Relocation Act (URA and the Uniform Standards of Professional Appraisal Practice (USPAP) should be considered in the development of a scope of work for an appraisal assignment on a federally funded project. Additionally, the Uniform Appraisal Standards for Federal Land Acquisition UASFLA and or other agency statutory or regulatory requirements would be considered as appropriate.

URA - Appraisal Requirements

The appraiser's Scope of Work must also acknowledge compliance with URA Appraisal Requirements as required by the funding agency if the appraisal is for a Federal or federally-assisted project.

The agency acquiring real property has a legitimate role in contributing to the appraisal process, especially in developing the scope of work and defining the appraisal problem.

The agency has the responsibility to assure that the appraisals it obtains are relevant to its program needs, reflect established and commonly accepted Federal and federally-assisted program appraisal practice, and as a minimum, comply with the definitions of appraisal in §24.2(a)(3) and the five following requirements[1]: (See Appendix A, §24.103 and §24.103(a).)

An adequate description of the physical characteristics of the property being appraised. A statement of the known and observed encumbrances, if any, title information, location, zoning, present use and analysis of highest and best use and at least a 5-year sales history of the property.

All relevant and reliable approaches to value consistent with Federal and federally-assisted program appraisal practices.

A description of comparable sales, including a description of all relevant physical, legal, and economic factors such as parties to the transaction, source and method of financing and verification by a party involved in the transaction.

A statement of value of the real property to be acquired and, for a partial acquisition, a statement of the value of the damages and benefits, if any, to the remaining property.

The effective date of valuation, date of appraisal, signature, and certification of appraisal.

The above noted requirements are the basic Appraisal Requirements for Federal and federally-assisted programs or projects. Additionally, agencies may enhance or expand on them, and there may be specific project or program legislation that references other appraisal requirements.

Competency and the Scope-of-Work Decision

URA

The URA regulations also address the competency issue in section §24.103(d). In addition to state licensing requirements, the appraiser's qualifications must be consistent with the scope of work for the assignment.

Updated: 04/02/2013
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