An appraiser must prepare a workfile for each appraisal or appraisal review assignment.
Preparation of the Workfile
An appraiser should not wait to prepare a workfile upon receiving the notification by the Division that a complaint has been filed against their license. The workfile must be in existence prior to the issuance of any report or other communication of assignment results.
For an oral report, a written summary must be added to the workfile within a reasonable time after the issuance of the oral report.
Contents of a Workfile
To be compliant with the Record Keeping Rule, the workfile must include:
- The name of the client and identity, by either name or type, of any other intended user;
- True copies of all written reports;
- If relevant, summaries of all oral reports or testimony (or transcript of the testimony) including the appraiser’s signed and dated certification; and
- All data, information, and documentation that are necessary to support the appraiser’s opinions and conclusions or references to the location of such data, information, or documentation.
DATA, INFORMATION, AND DOCUMENTATION EXAMPLES
The list below is by no means an exhaustive list but is meant to provide illustrations of standard data, information, and documentation included in the workfile.
- Any data regarding the Subject
- Any paired sale analysis
- Notes from the Discussion with any Real Estate Professional
- Details of Comparable Sales
- Any Building Plans
- Any Cost Data
- Any Data Considered but not Used
For Restricted Appraisal Reports and Oral Appraisal Reports, the workfile must include sufficient information, data or documentation for the appraiser to produce the appraisal report. It must also include a signed and dated certification.
Avoid Common Workfile Mistakes
To be compliant with the Record Keeping Rule of USPAP, an appraiser should avoid committing these common mistakes:
- Workfile has missing data or documents necessary to support the appraiser’s opinions and conclusions;
- Workfile is prepared after the assignment is completed or upon notification of a complaint sent by the Division;
- Data is stored in a location that is not retrievable during the retention period;
- There is no workfile for canceled assignments; and
- The signed and dated certification is missing.