In the recent series of articles on appraisal reports – we have examined various appraisal standards and what are the minimum requirements are for any appraisal report. We considered the special minimum content for appraisers to use when providing clients and their auditors asset value estimates for use in financial reports. In discussing the minimum report requirements, we noted the appraiser’s certification as a key part of every appraisal report. In this article we will look at what that certification means – both to the appraiser as a professional, and to the user of the appraisal estimate that is the subject of a certified report.

The appraiser’s signed statement of certification is another piece of the report that is required by standards applicable to the professional profession in most countries. It is the one thing that actually makes the report the work of a qualified professional - as opposed to simply someone’s appraisal analysis and value conclusion.

The appraiser’s certification can have certain differences between the organizations and countries that require them. In Russia, so far the requirement for a specific certification is not present in the written regulations for professional appraisers. As a result, some appraisal reports produced in Russia do not have these important statements and confirmations by the appraiser.

In the rest of the world, aside from some organization specific items, the certifications are very much the same – and serve the same purpose. They place on the report and its contents, the promise by the appraiser that it represents his best possible judgment and opinions, and that the contents are true, correct, and appropriate for their purpose. This is the essence of responsibility for a professional who puts himself forth to the public as an expert. This signed promise – indicating certain guarantees – makes the appraisal estimate more credible.

The accompanying box shows the individual statements required by typical standards of generally accepted practice, and the following paragraphs examine each statement and its significant to appraisal users.

Appraiser’s Certification
1. The statements of fact contained in this report are true and correct.
2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are my personal, impartial, and unbiased professional analyses, opinions, and conclusions.
3. I have no (or the specified) present or prospective interest in the property that is the subject of this report and no (or the specified) personal interest with respect to the parties involved.
4. I have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.
5. My engagement in this assignment was not contingent upon developing or reporting predetermined results.
6. My compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.
7. My analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the [ specify which standards ] of professional appraisal practice.
8. I have (or have not) made a personal inspection of the property that is the subject of this report.
9. No one provided significant real property appraisal assistance to the person signing this certification. (If there are exceptions, the name of each individual providing significant real property appraisal assistance must be stated.)

Promises and guarantees
In spite of the missing requirement in Russian law for the certification itself – some of the specific statements are part of the law on appraisal and its attendant regulations. But some are missing. All of them are important for the users of appraisal results. Those appraisal reports that do have the certification – give the additional comfort that the appraiser confirms compliance with these important principles.
For example, statement 2 is a personal confirmation of objectivity, and representation by the appraiser that the results are not affected by limitations or assumptions that are not stated.
Statements 3 and 4 are specific to the property, the parties involved, including the client, and represent that the appraiser has no interest or reason for bias related to any of them.
Statements 5 and 6 deal with the integrity of appraisers – and remind all parties that opinions of value are not for sale and they are not to be influenced by the client or the amount of fee paid.
Statement 7 provides the requirement that the appraiser state which standards he followed in developing his opinion. This is required by Russian law – and regulates the definitions of terms involved, and the frame of items the appraiser must have considered.
Number 8 requires the appraiser to state whether he actually looked at the property involved, which will influence the credibility of his opinion; and number 9 indicates the extent of assistance the appraiser received in his work, and from whom.

Appraiser responsibility
Appraisal company representatives often sign reports which they do not develop themselves, using the work of more junior appraisers and staff in their office. Although some have thought they were not responsible for the work of others - the principle has developed that any appraiser signing a report is responsible for all parts of that work – whether he was involved in it or not. If there are individuals providing significant appraisal assistance who do not sign the report – they should be identified and the extent of their assistance disclosed. But identifying them does not relieve the signing appraiser of any responsibility. He bears full responsibility for all content of a report that he signs.

Conclusion
In the end, signed appraisal reports are the personal promises and guarantees of an individual professional – and are as good as the integrity and ethics of the person involved. The users of appraisals who receive reports that do have the certification – have the additional comfort that the appraiser confirms compliance with these important factors. The same as the lawyer who agrees to represent you, or the doctor who agrees to treat you, each professional makes the personal promises similar to the ones listed here – that he is qualified, that he will do his best work for your case, and that he is not influenced by outside factors except those he has told you about. If all appraisals in the CIS market are produced according to this standard, then users can be sure their interests are protected and the value opinions they rely on represent the best available professional intent.