The following changes became effective on January 1, 2014. The Appraisal Standards Board revisions of USPAP include:
Assignment Results: The revised definition clarifies that the assignment results include opinions or conclusions and are not specifically limited to the value conclusion in an appraisal assignment or to the final opinion of the quality of another appraiser's work in an appraisal review assignment. Opinions developed about the highest and best use of the property, land value, depreciation, and other factors are also considered assignment results.
Scope of Work: The revised definition incorporates appraisal and appraisal review into the Scope of Work Rule.
Preamble: Changes were made to the Preamble that clarify when an individual is acting as an appraiser and what activities fall under what USPAP section.
Conduct section of the Ethics Rule: The Conduct section requires that an appraiser disclose any current or prospective interest in the subject property and any services performed regarding the subject property in the past three years. The disclosure to the client occurs prior to or when discovered, as well as in the certification. In assignments where there is no report, only the initial disclosures to the client are required. There are no other additional certification requirements.
Competency Rule: The Competency Rule requires that an appraiser be competent to perform the assignment, or acquire the necessary competency, or withdraw from the assignment. “In all cases, the appraiser must perform competently when completing the assignment.” has been added to this section.
Reporting Requirements: In previous versions of USPAP, there were three written report options for real property and personal property appraisal assignments. The 2014-2015 USPAP has two written report options for real property and personal property appraisal assignments : an Appraisal Report and a Restricted Use Appraisal Report. A Restricted Use Appraisal Report may only be issued if the client of the appraisal is also the intended user of the appraisal.
Standards Rule 3-5: In the past Standard 3 did not require a date of the appraisal review report. This oversight has been corrected with the addition of the date of the appraisal review report.
Standards 4 & 5: The standards pertaining to Real Property Appraisal Consulting development and Standard 5: Real Property Appraisal Consulting reporting has been retired.
For additional information: Appraisal Foundation
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