Uniform Standards of Professional Appraisal Practice

USPAP

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 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.

The USPAP manual is over 300 pages long, but here are the main points of interest:

An appraiser's adherence to the Uniform Standards of Professional Appraisal Practice (USPAP) is not merely a choice but a fundamental obligation when dictated by laws, regulatory mandates, or specific agreements with clients and the intended users of the appraisal. This compliance ensures that every appraisal is performed with consistency, professionalism, and ethical rigor, aligning with recognized standards that safeguard the interests of all parties involved and uphold the integrity of the appraisal profession across diverse contexts and jurisdictions.

In adhering to the Uniform Standards of Professional Appraisal Practice (USPAP), an appraiser is mandated to follow these guidelines not only when explicitly required by legal or regulatory bodies but also when they have entered into a contractual agreement with the client or the intended users of the appraisal. This commitment ensures that all appraisal practices are conducted with the highest level of integrity, professionalism, and ethical standards, thereby maintaining the trust and confidence of clients and the public in the appraisal profession.

To fulfill their professional duties, 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 that appraisals are conducted in a manner that is fair, unbiased, and devoid of any influence from the appraiser's personal gains or preferences, thereby upholding the integrity and trustworthiness of the appraisal process.

An Appraiser must retain the work file (all appraisal notes, calculations, and supplemental information used in preparing the appraisal) 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 in relation to the assignment, whichever period expires last.

The Appraisal Foundation

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 provides voluntary guidance on recognized valuation methods and techniques for all professional appraisers. Because of them, appraisals are independent, consistent, and objective.

The foundation is directed by a Board of Trustees (BOT) and are headquartered in Washinton, D.C. The Foundation also ensures that the profession adapts to changing circumstances and progresses through the work of its two independent boards: the Appraiser Qualifications Board (AQB) and the Appraisal Standards Board (ASB).