Cover Letter vs. Transmittal Letter vs. Cover Document: What’s the Difference?
(by David Maloney) There has long been a misunderstanding related to definitions associated with and use of the terms cover letter, transmittal letter and cover document. Do they differ? Are they one-in-the-same? Must one or the other be used?
The term “cover document” was first used in association with appraisals in 1994 when a standardized core course in personal property appraisal theory and principles was written by this author for a major appraisal society. Suffice it to say that the term “cover document” is synonymous with the term “transmittal letter” which has been and currently is in even wider use within other appraisal disciplines. Indeed, even USPAP makes mention of the term “transmittal letter” in its Ethics Rule and in the below quoted Q&A. USPAP does not make any mention of the term “cover document.” For the purposes of this discussion, we will equate “cover document” with “transmittal letter” and will henceforth make use of the latter term while discontinuing use of the former.
Of the two remaining letters, there is no consensus on the use or nomenclature of the cover letter and transmittal letter among the various appraisal disciplines, but the following discussion will assist you to properly make use of them regardless of what they are called. Note, too, that there is no USPAP requirement for either a cover letter or a transmittal letter, USPAP’s Q&A and Ethics Rule mentions of the transmittal letter notwithstanding. Though not required, both often have their place in the preparation of a professionally designed and coherent report.
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