What is the appraiser's obligation regarding a prior transfer of a property inherited by the client?

The appraiser's obligation concerning a prior transfer of a property inherited by the client is to analyze the prior transfer and report the results. This is crucial because understanding the history of property transfers, including past sales and inheritances, provides valuable context and data that can influence the current value of the property being appraised.

When a property has been inherited, the appraiser must look at the specifics of that transfer, such as the amount it was worth at the time of inheritance, any conditions attached to the inheritance, and how it compares to the current market conditions. This analysis helps establish a more accurate value based on the property's historical context and ensures that the appraisal is grounded in comprehensive data.

In contrast, ignoring prior transfer history can lead to a lack of understanding of the property's value trajectory. While disclosing the inheritance or assessing the fairness of the transfer may be considerations for the client, they do not take precedence in the appraiser's primary responsibility, which is to deliver a well-supported valuation based on all relevant and credible information, including prior transfers.