Real Property
Real Property News
Appraisal Organizations Unite and Urge Congress to Pass Conservation Easement Act
The American Society of Appraisers, American Society of Farm Managers and Rural Appraisers, the Appraisal Institute and National Association of Independent Fee Appraisers, have again joined forces to urge the Ways and Means Committee to approve H.R. 1831, The Conservation Easement Incentive Act of 2009.
In a letter sent to Chairman Charles Rangel, Democrat from New York and Ranking Member Dave Camp, a Republican from Michigan, the organizations asked that the legislation perpetuate the tax deduction for charitable contributions by individuals and corporations of real property interests for conservation purposes. The legislation currently in place will expire on December 31, 2009.
The letter signed by the appraisal groups states “By incentivizing the voluntary conservation of land while preserving private property rights, this deduction has helped preserve hundreds of thousands of acres of forests, watersheds, and farms for future generations. This important deduction cannot be allowed to expire.”
The tax incentive which was originally enacted in 2006 and was renewed as part of the 2008 Farm Bill, promotes the use of conservation easements. These easements allow private landowners to retain ownership, control and management of the property while ensuring that the physical integrity of those lands will be conserved for the future.
The appraisal organizations have collaborated, and in cooperation with the Land Trust Alliance, have offered education to the appraisal community on the proper valuation of conservation easements. These education offerings include advanced seminars that teach participants how to comply with IRS requirements and other issues that might be found in the valuation of conservation easements. Appraisal organizations estimate that more than 1,000 participants have received this education.
The Appraisal Foundation Announces
Establishment of New Independent Board
Appraisal Practices Board (APB) to Commence Work in July 2010
Washington, DC, November 5, 2009 — The Appraisal Foundation, a Congressionally authorized non-profit organization dedicated to promoting professionalism in appraising through the establishment of appraisal standards and appraiser qualifications, announced today the establishment of a third independent board, the Appraisal Practices Board (APB).
Earlier this year, the Foundation Board of Trustees established a Task Force to study the issue of how to best address a void in the marketplace related to guidance on appraisal methods and techniques that would be available to all appraisers practicing in the United States. This guidance will cover all valuation disciplines, with a focus on emerging issues.
With the unanimous consent of The Appraisal Foundation Board of Trustees, it was agreed that a new board be established, similar in structure and composition to the already existing independent boards, the Appraiser Qualifications Board (AQB) and the Appraisal Standards Board (ASB).
The purpose of this third board is to issue voluntary timely guidance to appraisers on emerging valuation issues that are occurring in the marketplace. This guidance will be of assistance to appraisers, appraiser regulators and educators. The new Board will enlist the help of market surveys to identify issues that need to be addressed and will empanel small groups of volunteer Subject Matter Experts (SMEs) to draft the guidance for review and approval by the Board.
The need for this type of guidance was underscored with the onset of the declining real estate market. Many appraisers had not previously faced this type of market condition and the impact of foreclosed properties and short sales. Because a majority of state licensed and certified real estate appraisers do not belong to a professional society, they had limited access to guidance.
“In unanimously supporting this concept, the Board of Trustees strongly believes that this is the best avenue for issuing voluntary guidance to appraisers,” said Paul Welcome, Chairman of The Appraisal Foundation Board of Trustees. “We believe that this is the right thing to do for the profession, that it is the right time to do it and that we are the right organization to undertake the task,” added Welcome.
Those interested in serving on the Appraisal Practices Board should consult The Appraisal Foundation’s web site (http://www.appraisalfoundation.org/) for more details after the first of the year. Applications for qualified candidates will be solicited in the Spring of 2010, with the new Board to be constituted and commencing work in July 2010. We anticipate that selection of SME panels will follow in the latter part of 2010.
For more information regarding the Appraisal Foundation, contact www.appraisalfoundation.org.
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ASA, along with the Appraisal Institute (AI), the Association of Farm Managers and Rural Appraisers (ASFMRA), and the National Association of Independent Fee Appraisers (NAIFA), sent a letter to Treasury Secretary Timothy Geithner expressing “deepest concern” over the use of broker price opinions (BPOs) in valuing porpoerties to be short sold under the forthcoming Home Affordable Foreclosure Alternatives (HAFA) program.
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A bill requiring AMC’s to be registered with and regulated by the state of New Mexico was signed into law by Governor Bill Richardson on March 1. The bill not only requires AMC’s to be registered with the state, but also requires that internal appraisal review staff meet significant competency thresholds and requires AMC’s to only hire licensed or certified appraisers.
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Real Property Education
ASA-Real Property and NAIFA Classes
The American Society of Appraisers Real Property Committee (ASA-RP) has entered into an agreement with the National Association of Independent Fee Appraisers (NAIFA) to develop, maintain and present joint educational offerings.
Click here for the calendar of joint educational offerings.