What is USPAP?
Uniform Standards of Professional Appraisal Practice
Why was USPAP developed?
To promote and maintain a high level of public trust ... [Show More] as well as confidence in professional appraisal practice
What are the benefits of USPAP?
1) Provides a common basis for comparison (eg are we doing the appropriate work for the type of assignment?)
2) Provides a reference source for all users of the document.
3) Provides a basis for uniform enforcement for state regulatory agencies.
4) Provides a reason for clients, other intended users, and the public to place their trust in the services performed by professional appraisers.
What is the role of the Appraisal Standards Board (ASB) of The Appraisal Foundation?
To develop, interpret, and amend the Uniform Standards of Professional Appraisal Practice (USPAP).
What are the five sections of USPAP?
Preamble
Definitions
Rules
Standards (Including Standards Rules)
Statements on Appraisal Standards (currently no active statements)
Are the Advisory Opinions (AO) and the Frequently Asked Questions (FAQ) a part of USPAP?
NO. These are reference materials of "Other Communications". They are for guidance only. These communications do not establish new Standards or interpret existing Standards and are not a part of USPAP.
Who enforces the adherence and content of USPAP?
State and Federal Regulatory Authorities
Who appoints the ASB (Appraisal Standards Board)?
Members are appointed by the BOT (Board of Trustees)
What is the purpose of USPAP?
The purpose is to promote and maintain a high level of public trust in appraisal practice by establishing requirements for appraisers.
Who does the ASB (Appraisal Standards Board) promulgate USPAP for?
It is promulgated for both appraisers and users of appraisal services.
What is the appraiser's responsibility?
It is to protect the overall public trust.
How does USPAP address the ethical and performance obligations of appraisers?
USPAP addresses the ethical and performance obligations of appraisers through DEFINITIONS, RULES, STANDARDS, STANDARDS RULES, and STATEMENTS (there are currently no active statements).
What do the DEFINITIONS portion of USPAP establish?
The DEFINITIONS establish the application of certain terminology in USPAP.
What is the purpose of the ETHICS RULE?
The ETHICS RULE sets forth the requirements for integrity, impartiality, objectivity, independent judgment, and ethical conduct.
What does the RECORD KEEPING RULE establish?
The RECORD KEEPING RULE establishes the workfile requirements for appraisal and appraisal review assignments.
What does the COMPETENCY RULE do?
The COMPETENCY RULE presents pre-assignment and assignment conditions for knowledge and experience.
Wat does the SCOPE OF WORK RULE do?
The SCOPE OF WORK RULE presents obligations related to problem identification, research, and analysis.
What doe the JURISDICTIONAL EXCEPTION RULE do?
The JURISDICTIONAL EXCEPTION RULE preserves the balance of USPAP if a portion is contrary to law or public policy of a jurisdiction.
What is the purpose of the STANDARDS?
The STANDARDS establish the requirements for appraisal and appraisal review and the manner in which each is communicated.
What is the purpose of STANDARDS 1 and 2?
STANDARDS 1 & 2 establishes requirements for the development and communication of a real property appraisal.
What is the purpose of STANDARDS 3 and 4?
STANDARDS 3 and 4 establishes requirements for the development and communication of an appraisal review.
What is the purpose of STANDARDS 5 and 6?
STANDARDS 5 & 6 establishes requirements for the development and communication of a mass appraisal.
What is the purpose of STANDARDS 7 and 8?
STANDARDS 7 and 8 establishes requirements for the development and communication of a personal property appraisal.
What is the purpose of STANDARDS 9 and 10?
STANDARDS 9 & 10 establishes requirements for the development and communication of a business or intangible asset appraisal.
What is the purpose of the COMMENTS of USPAP?
Comments are an integral part of USPAP and have the same weight as the component they address. These extensions of the DEFINITIONS, RULES, and STANDARDS RULES provide interpretation and establish the context and conditions for application.
Does USPAP establish who or which assignments must comply?
NO. USPAP does not establish who or which assignments must comply.
What are the limitations of The Appraisal Foundation?
The Appraisal Foundation is not a government entity. It does not have the power to make, judge, or enforce law.
What are the limitations of the Appraisal Standards Board?
The Appraisal Standards Board is not a government entity. It does not have the power to make, judge, or enforce law.
When must an appraiser comply with USPAP?
An appraiser must comply with USPAP when either the service or the appraiser is required by law, regulation, or agreement with the client. Individuals may also choose to comply with USPAP any time that individual is performing the service as an appraiser.
What must an appraiser do to comply with USPAP?
- An appraiser must act competently and in a manner that is independent, impartial, and objective.
- An appraiser must comply with the ETHICS RULE in all aspects of appraisal practice.
- An appraiser must maintain the data, information and analysis necessary to support his or her opinions for appraisal and appraisal review assignments in accordance with the RECORD KEEPING RULE.
- An appraiser must comply with the COMPETENCY RULE and the JURISDICTIONAL EXCEPTION RULE for all assignments.
- When an appraiser provides an opinion of value in an assignment, the appraiser must also comply with the SCOPE OF WORK RULE, the RECORD KEEPING RULE, the applicable development and reporting Standards and applicable Statements (there are currently no active Statements).
- When an appraiser provides an option about the quality of another appraiser's work that was performed as part of an appraisal or appraisal review assignment, the appraiser must also comply with the SCOPE OF WORK RULE, the RECORD KEEPING RULE, applicable portions of STANDARDS 3 and 4, and applicable Statements (there are currently no active Statements).
- When preparing an appraisal or appraisal review that is a component of a large assignment with additional opinions, conclusions, or recommendations, the appraisal or appraisal review component must comply with the applicable development and reporting Standards and applicable Statements (there are currently no active Statements), and the remaining component of the assignment must comply with the ETHICS RULE, the COMPETENCY RULE, and the JURISDICTIONAL EXCEPTION RULE. [Show Less]
