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USPAP 2018-2019 Edition

© The Appraisal Foundation

The purpose of the

Uniform Standards of Professional Appraisal Practice

(USPAP) is to promote and maintain a high

level of public trust in appraisal practice by establishing requirements for appraisers. It is essential that appraisers

develop and communicate their analyses, opinions, and conclusions to intended users of their services in a manner

that is meaningful and not misleading.

The Appraisal Standards Board promulgates USPAP for both appraisers and users of appraisal services. The

appraiser’s responsibility is to protect the overall public trust and it is the importance of the role of the appraiser that

places ethical obligations on those who serve in this capacity. USPAP reflects the current standards of the appraisal

profession.

USPAP addresses the ethical and performance obligations of appraisers through DEFINITIONS, Rules, Standards,

Standards Rules, and Statements (there are currently no active Statements).

• The DEFINITIONS establish the application of certain terminology in USPAP.

• The ETHICS RULE sets forth the requirements for integrity, impartiality, objectivity, independent judgment, and

ethical conduct.

• The RECORD KEEPING RULE establishes the workfile requirements for appraisal and appraisal review

assignments.

• The COMPETENCY RULE presents pre-assignment and assignment conditions for knowledge and experience.

• The SCOPE OF WORK RULE presents obligations related to problem identification, research, and analyses.

• The JURISDICTIONAL EXCEPTION RULE preserves the balance of USPAP if a portion is contrary to law or

public policy of a jurisdiction.

• The Standards establish the requirements for appraisal and appraisal review and the manner in which each is

communicated.

- STANDARDS 1 and 2 establish requirements for the development and communication of a real property

appraisal.

- STANDARDS 3 and 4 establish requirements for the development and communication of an appraisal review.

- STANDARDS 5 and 6 establish requirements for the development and communication of a mass appraisal.

- STANDARDS 7 and 8 establish requirements for the development and communication of a personal property

appraisal.

- STANDARDS 9 and 10 establish requirements for the development and communication of a business or

intangible asset appraisal.

• There are currently no active Statements on Appraisal Standards.

• 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.

When Do USPAP Rules and Standards Apply

?

USPAP does not establish who or which assignments must comply. Neither The Appraisal Foundation nor its Appraisal

Standards Board is a government entity with the power to make, judge, or enforce law. An appraiser must comply

with USPAP when either the service or the appraiser is required by law, regulation, or agreement with the client or

intended user. Individuals may also choose to comply with USPAP any time that individual is performing the service as

an appraiser. In order to comply with USPAP, an appraiser must meet the following obligations:

• 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

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