Copyright

Uniform Standards of Professional Appraisal Practice (USPAP): Standards & Applications

Instructor: Kyle Aken

Kyle is a journalist and marketer that has taught writing to a number of different children and adults after graduating from college with a degree in Journalism. He has a passion for not just the written word, but for finding the universal truths of the world.

There are set standards in the United States for appraisers. These Uniform Standards of Professional Appraisal Practice guide appraisers with ethical and professional development and reporting in appraisal.

USPAP Applications

The Uniform Standards of Professional Appraisal Practice (USPAP) were established by the Appraisal Standards Board, a part of the Appraisal Foundation. These requirements are a set of national standards that are applicable to most all of the property appraisals done in the United States. There are ten standards in the set, but Standards were retired on January 1, 2014.

Since real estate is one of the most essential sources of wealth in the world, appraisers and other professionals who work with property economics should understand the recognized guidelines and standards of property appraisal. For this reason, it is important to have an established set of standards for ethical and professional guidance.

If you want to purchase a current or a past edition of the USPAP, they can be accessed on the Appraisal Foundation website. There are often revisions to the Standards. You can access the 2016 - 2017 adopted USPAP revisions on the Appraisal Institute's website under 'Summary of Actions Related to Proposed USPAP Changes.' You can also access guidance for unique situations in appraisal under their 'Guide Notes to the Standards of Professional Appraisal Practice.'

Standards 1 & 2

Standards 1 and 2 establish the requirements for development and reporting of the appraisal process with real property. Standard 1 covers real property appraisal development. In this kind of appraisal, the appraiser should recognize the problem, estimate the work that will be necessary to fix the problem, and follow through with a credible appraisal with reliable research and analysis. Standard 2 covers the reporting of an appraisal of real property. This standard requires that reporting fully communicate any analyses, opinions, and conclusions in a way so that they are not misleading. This covers specific content as well as amount of information that should be included. It does not cover formatting or style of the report. The major focus is with the actual content.

Standard 3

Standard 3 establishes the requirements associated with appraisal review assignments that involve an appraisal of real property or personal property. Just as with Standards 1 and 2, this covers requirements for development and reporting of appraisals. There are some minimum requirements for appraisal review that have been set by the USPAP:

  • Identity of client and intended users (by name or type)
  • Intended use of appraisal
  • Purpose of appraisal review
  • Satisfactory information regarding identity of reviewed work, date and effective date of reviewed work, appraiser(s) that completed reviewed work
  • Effective date of appraisal review
  • Any and all extraordinary assumptions as well as any hypothetical situations with official statement that their use may have had an effect on the results of the assignment
  • Scope of work for development of appraisal review
  • Reviewer's opinions and conclusions (including disagreements)
  • Signed certification

Standard 6

Standard 6 establishes the requirements that come along with mass appraisal development and reporting for ad valorem tax purposes. This Standard sets guidelines for the qualifications of someone who should perform a mass appraisal. They must not only be aware of the recognized techniques and methods; they must also fully understand and employ them. The appraiser should be familiar with property tax laws in the appraisal process.

To unlock this lesson you must be a Study.com Member.
Create your account

Register to view this lesson

Are you a student or a teacher?

Unlock Your Education

See for yourself why 30 million people use Study.com

Become a Study.com member and start learning now.
Become a Member  Back
What teachers are saying about Study.com
Try it risk-free for 30 days

Earning College Credit

Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.

Create an account to start this course today
Try it risk-free for 30 days!
Create an account
Support