Uniform Standards of Professional Appraisal Practice: the cornerstone of ethical, consistent, and trustworthy appraisals.
The Uniform Standards of Professional Appraisal Practice is published and maintained by the Appraisal Standards Board (ASB) of the Appraisal Foundation, a non-governmental entity charged by Congress with promulgating appraisal standards.
The purpose of USPAP is to promote and maintain a high level of public trust in appraisal practice by establishing requirements for Appraisers. The USPAP manual is over 300 pages long, but here are the main points of interest:
An appraiser's adherence to USPAP is not merely a choice but a fundamental obligation when dictated by laws, regulatory mandates, or specific agreements with clients. This compliance ensures that every appraisal is performed with consistency, professionalism, and ethical rigor.
An appraiser is required to approach each assignment with a mindset that prioritizes impartiality, objectivity, and independence, steering clear of any potential interference by personal biases or interests. This foundational principle ensures appraisals are fair, unbiased, and devoid of any influence from personal gains.
An Appraiser must retain the work file for a period of at least five years after preparation or at least two years after final disposition of any judicial proceeding in which the Appraiser provided testimony, whichever period expires last.
In 1986, leading appraisal organizations from the US and Canada formed a committee to establish the Uniform Standards of Professional Appraisal Practice (USPAP) amid the savings and loan industry crisis. By 1987, the Appraisal Foundation was created to enforce USPAP as the standard in the US.
Following this, the 1989 Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) recognized the Foundation as the official source of appraisal standards and qualifications. The Foundation, while not a membership body, includes nearly a hundred organizations, corporations, and government agencies as affiliates.
The Appraisal Foundation is the foremost authority on the valuation profession in the United States. They set congressionally authorized standards and qualifications for real estate appraisers as well as qualifications for personal property appraisers and provide voluntary guidance on recognized valuation methods and techniques.
The Foundation is directed by a Board of Trustees (BOT) and is headquartered in Washington, D.C. The Foundation also ensures that the profession adapts to changing circumstances through the work of its two independent boards: the Appraiser Qualifications Board (AQB) and the Appraisal Standards Board (ASB).
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