Federally Related Transaction

A registered appraiser may not do an appraisal for a federally related transaction under any circumstances. A licensed appraiser may not do a residential appraisal for a federally related transaction if the transaction value exceeds $1,000,000.

Neither a registered appraiser, a licensed appraiser, nor a certified appraiser may do a non-residential appraisal in which the transaction value exceeds $250,000.

If any appraiser does an appraisal that exceeds his/her license limit, the appraiser must disclose that the appraisal is not suitable for a federally related transaction and why.

Quote:

(b) If an appraiser does not hold an appraiser classification which permits the performance of a particular appraiser assignment for use in a federally related transaction, the appraiser must include in such appraiser's appraisal report a statement that the appraisal report may not be eligible for use in a federally related transaction. Title 43, paragraph 39A-19 (PDF page 13)

Possible Comment #1 (residential Transaction value exceeds $1,000,000):

This appraisal may not be eligible for use in a federally related transaction. The residential transaction value exceeds $1,000,000. A licensed appraiser may not do a residential appraisal for use in a federally related transaction in which the transaction value exceeds $1,000,000. (Title 43, paragraph 39A-19)

Possible Comment #2 (non-residential transaction value exceeds $250,000):

This appraisal may not be eligible for use in a federally related transaction. The transaction value exceeds $250,000 and is a non-residential appraisal. A certified residential appraiser may not do a non-residential appraisal for use in a federally related transaction in which the transaction value exceeds $250,000. (Title 43, paragraph 39A-19)

Transaction Value (from the Appraisal Institute Dictionary of Real Estate Appraisal, 4th Edition)

1. For loans or other extensions of credit, the amount of the loan or extension of credit.

2. For sales, leases, purchases, and investments in or exchanges of real property, the market value of the real property interest involved.

3. For the pooling of loans or interests in real property for resale or purchase, the amount of the loan or market value of the real property calculated with respect to each such loan or interest in real property.

(12 C.F.R. Part 34.42(m); 55 Federal Register 34696, August 24, 1990, as amended at 57 Federal Register 12202, April 9, 1992; 59 Federal Register 29499, June 7, 1994)

Page url: http://www.georgiaappraiser.com/everythingappraisal/?federally_related_transaction.htm