Paula Konikoff, JD, MAI, chair of AI's Professional Standards and Guidance Committee, discusses the USPAP Updates
The Standards of Professional Appraisal Practice of the Appraisal Institute are
composed of the Uniform Standards of Professional Practice (USPAP), promulgated
by the Appraisal Standards Board of The Appraisal Foundation, and the Certification
Standard of the Appraisal Institute; or the International Valuation Standards, promulgated
by the International Valuation Standards Council, applicable national Standards,
and the Certification Standard of the Appraisal Institute.
The Uniform Standards of Professional Appraisal Practice
USPAP contains the generally accepted standards for professional appraisal practice
in North America, as developed by the Appraisal Standards Board (ASB) of the Appraisal
Foundation.
Standards 1 and 2 establish requirements for the development and
reporting of a real property appraisal.
Standard 3 establishes
requirements for development and reporting of an appraisal review assignment involving
a real property or personal property appraisal.
Standards 4 and 5
establish requirements for the development and reporting of real property consulting
assignments.
Standard 6 establishes requirements for the development
and reporting of mass appraisals.
Standards 7 and 8 establish
requirements for the development and reporting of personal property appraisals.
Standards 9 and 10 establish requirements for the development and
reporting of business or intangible asset appraisals.
USPAP also includes 10 Statements on Appraisal Standards which clarify, interpret,
explain, or elaborate on a Standards Rule and which have the full weight of a Standards
Rule and 32 Advisory Opinions which illustrate the applicability of appraisal standards
in specific situations and offer advice from the Appraisal Standards Board for the
resolution of appraisal issues and problems. Advisory Opinions do not establish
or interpret existing standards.
IVS, as developed by the International Valuation Standards Council (IVSC), has been
adopted or recognized by many valuation institutes, user groups, and financial regulators
around the world.
IVS can be purchased on the IVSC
website
Guide Notes to the Standards of Professional Appraisal Practice
The Appraisal Institute has developed and adopted the Guide Notes to the Standards
of Professional Appraisal Practice to provide guidance as to how the requirements
of the Standards may apply in specific situations.
