[Code of Federal Regulations]

[Title 43, Volume 2]

[Revised as of October 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 43CFR2201.3-3]



[Page 65-66]

 

                    TITLE 43--PUBLIC LANDS: INTERIOR

 

    CHAPTER II--BUREAU OF LAND MANAGEMENT, DEPARTMENT OF THE INTERIOR

 

PART 2200_EXCHANGES: GENERAL PROCEDURES--Table of Contents

 

              Subpart 2201_Exchanges_Specific Requirements

 

Sec.  2201.3-3  Appraisal report standards.



    Appraisals prepared for exchange purposes shall contain, at a 

minimum, the following information:

    (a) A summary of facts and conclusions;



[[Page 66]]



    (b) The purpose and/or the function of the appraisal, a definition 

of the estate being appraised, and a statement of the assumptions and 

limiting conditions affecting the appraisal assignment, if any;

    (c) An explanation of the extent of the appraiser's research and 

actions taken to collect and confirm information relied upon in 

estimating value;

    (d) An adequate description of the physical characteristics of the 

lands being appraised; a statement of all encumbrances; title 

information, location, zoning, and present use; an analysis of highest 

and best use; and at least a 5-year sales history of the property;

    (e) A disclosure of any condition that is observed during the 

inspection of the property or becomes known to the appraiser through 

normal research that would lead the appraiser to believe that hazardous 

substances may be present on the property being appraised;

    (f) A comparative market analysis and, if more than one method of 

valuation is used, an analysis and reconciliation of the methods used to 

support the appraiser's estimate of value;

    (g) A description of comparable sales, including a description of 

all relevant physical, legal, and economic factors such as parties to 

the transaction, source and method of financing, effect of any favorable 

financing on sale price, and verification by a party involved in the 

transaction;

    (h) An estimate of market value;

    (i) The effective date of valuation, date of appraisal, signature, 

and certification of the appraiser;

    (j) A certification by the appraiser signing the report to the 

following:

    (1) The appraiser personally contacted the property owner or 

designated representative and offered the owner an opportunity to be 

present during inspection of the property;

    (2) The appraiser personally examined the subject property and all 

comparable sale properties relied upon in the report;

    (3) The appraiser has no present or prospective interest in the 

appraised property; and

    (4) The appraiser has not, and will not, receive compensation that 

was contingent on the analysis, opinions, or conclusions contained in 

the appraisal report; and

    (k) Copies of relevant written reports, studies, or summary 

conclusions prepared by others in association with the appraisal 

assignment that were relied upon by the appraiser to estimate value, 

which may include but is not limited to current title reports, mineral 

reports, or timber cruises prepared by qualified specialists.