UP Standards

1.2.6.4. Contacting Landowners. During the course of inspecting the subject property, the appraiser is expected to meet with the property owner or, in the owner’s absence, the owner’s agent or representative. If a property owner is represented by legal counsel, all owner contact and property inspections must be arranged through the owner’s attorney, unless the attorney specifically authorizes the appraiser to make direct contact with the owner. Owners are generally a prime source of detailed information concerning the history, management, and operation of the property.  Under the Uniform Act, the owner or the owner’s designated representative must be given an opportunity to accompany the acquiring agency’s appraiser during the appraiser’s inspection of the property.17   

1.2.6.3. Property Inspections. The appraiser must personally inspect the subject property in every assignment. Appraisers should recognize that they may have only one opportunity to physically inspect the property and should ensure that they have collected all information required to identify all property characteristics (land and improvements) that influence value.  In partial acquisitions in which the appraiser’s inspection precedes the acquisition, the appraiser should request that the agency stake the portion(s) of the property to be acquired before the inspection so that the impact of the acquisition on the remainder can be visualized. If the appraiser’s inspection occurs after construction of the government’s project begins (most commonly in Declaration of Taking cases), the appraiser must learn about the property as…

1.2.6.2. Legal Description. It is the responsibility of the agency to provide the appraiser with an accurate legal description of the subject property prior to initiating the assignment. If the assignment is a partial acquisition, the appraiser should receive both a legal description of the larger parcel and a legal description of the remainder property, or alternatively, a legal description of the area to be acquired and/or encumbered. Since the larger parcel is determined by the appraiser as part of the highest and best use analysis, it is possible that a legal description for the larger parcel must be developed at that point in the appraisal development process.  The appraiser should verify the legal description (1) on the ground during…

1.2.6.1. Property Interest(s) to be Appraised.It is the responsibility of the acquiring agency to provide the appraiser with an accurate description of the property interest(s) to be appraised in each assignment.  Often, the property interest being acquired and appraised is the fee simple estate. This is so even when the real estate has been divided into multiple estates with different owners. This is an application of the unit rule, which will be discussed in greater detail in Section 1.2.7.3.2 and 4.2.2. Federal agencies can also acquire something less than the fee simple interest in property, for example by excluding easements for roads and utilities, mineral rights, water rights, or mineral leases. Agencies can also acquire partial interests such as permanent…

1.2.6. Relevant Characteristics of the Subject Property. The subject property is the property that is being appraised.15 In the context of these Standards the term may refer to the property that is the larger parcel. In developing an appraisal under these Standards the appraiser must complete a comprehensive study of the physical, legal, and economic characteristics of the subject property as well as the neighborhood and market in which it is located.   

1.2.5. Effective Date. The effective date of value for the assignment is dependent on the intended use, which depends on the legal nature of the acquisition and is further discussed in Section 4.2.1.1. In most direct acquisitions (such as voluntary purchases), the effective date of value will be as near as possible to the date of the acquisition—typically the date of final inspection. In “quick-take” condemnations under the Declaration of Taking Act, the date of value is the earlier of (1) the date the United States files a declaration of taking and deposits estimated compensation with the court, or (2) the date the government enters into possession of the property. In “complaint-only” straight condemnations under the General Condemnation Market value is…

1.2.4. Type of Opinion. In all assignments for federal acquisitions under these Standards, the type of opinion to be developed is market value. It is imperative that the appraiser utilize the correct definition of market value. In all federal acquisitions except leasehold acquisitions, appraisers must use the following federal definition of market value:11  Definition of Market Value Market value is the amount in cash, or on terms reasonably equivalent to cash, for which in all probability the property would have sold on the effective date of value, after a reasonable exposure time on the open competitive market, from a willing and reasonably knowledgeable seller to a willing and reasonably knowledgeable buyer, with neither acting under any compulsion to buy or…

1.2.3. Intended Use. The intended use of the appraisal is one of the most important elements of the problem identification process. In most assignments, the intended use of the appraisal is to assist the client agency in its determination of the amount to be paid as just compensation for the property rights acquired or conveyed. In those cases that have been referred to the Department of Justice for litigation, the intended use will be to assist government’s trial counsel and the court in determining market value for the purpose of just compensation. 

1.2.2.Intended Users. All intended users of an appraisal must be identified at the outset of the assignment. Intended users often include not only the client agency but also other federal, state, or local agencies. In appraisals for land exchanges, discussed in more detail in Section 1.12, intended users may include landowners. In appraisals for acquisitions referred to the Department of Justice for condemnation litigation purposes, the intended users may include Uniform Appraisal Standards for Federal Land Acquisitions / Appraisal Development the federal court, landowners, and their counsel. The appraiser must fully identify and understand who the intended users are before initiating the appraisal assignment.

1.2.1. Client. The client is the party or parties engaging an appraiser in an assignment. The client is the appraiser’s primary contact and provides all of the information about the assignment. Most importantly, the client is the entity to whom the appraiser owes confidentiality. The client must be established before the appraiser begins the assignment. Under these Standards, the client is the federal agency that is requesting the appraisal.