Professional appraisals for both commercial and residential properties.
USPAP – What is it?
The federal law that governs appraisers is commonly called USPAP, which is short for The Uniform Standards of Professional Appraisal Practice. USPAP is modified bi-annually with public input and is developed and written by the Appraisal Standards Board, a sub group of The Appraisal Foundation. While each state often has specific written laws concerning appraisers and appraisals, which that state’s appraisers must follow, the ultimate rules are contained within USPAP. Originated and developed to promote public trust in the appraisal industry and often considered complex, USPAP evolves and changes meaning appraisers must take mandatory continuing education classes every other year to stay abreast of current requirements. The most significant change to the latest edition was the elimination of the Self Contained Appraisal Report which left only two current report options, a Restricted Report and an Appraisal Report. USPAP doesn’t specify whether a report must be narrative or a standardized form, only the description based upon the intended use, intended user, and the level of detail contained within the report. This is based on the theory that the valuation process or scope of work when appraising a property must be the same for a Restricted Report as an Appraisal Report. Only the level of detail and descriptions included in the written report is different.
To examine the most recent edition of USPAP, please visit www.uspap.org.