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USPAP 2018-2019 Edition

© The Appraisal Foundation

III

FOREWORD

REVISIONS TO USPAP AND USPAP ADVISORY OPINIONS

After the publication of the 2016-17 edition of USPAP, a series of one discussion and three exposure drafts were

released to obtain feedback on possible modifications for the 2018-19 edition. On February 3, 2017, the Appraisal

Standards Board (ASB) adopted modifications for the 2018-19 edition of the

Uniform Standards of Professional

Appraisal Practice

(USPAP). These modifications include:

1. Revising the definition of Report and edits to the ETHICS RULE and the RECORD KEEPING RULE

– The

Board adopted proposed revisions in the Third Exposure Draft to clarify the definition of Report, as well as

edits to the ETHICS RULE and the RECORD KEEPING RULE applicable to the communication of assignment

results. As put forth in the Third Exposure Draft, the Board did not adopt revisions related to communications

of assignments results prior to the completion of the assignment other than the ethical and record keeping

requirements that appear in that section. Although there was support for specifically addressing draft reports,

the Board also learned that there were significant unintended consequences that might occur with the

adoption of any such requirements.

2. Creating a definition of Assignment Conditions, revising the definitions of Assignment, Intended Use

and Intended User, and related edits to the COMPETENCY RULE

The Board created a definition of

Assignment Conditions, a term that had only been previously referenced in the SCOPE OF WORK RULE. The

Board also adopted revisions intended to clarify the definitions of Assignment, Intended Use, and Intended

User, as well as making related edits to the COMPETENCY RULE to clarify an appraiser’s obligations prior

to agreeing to perform an assignment. Although the Board did not revise the language “at the time of the

assignment,” the Board did receive comments expressing concern with its meaning. Therefore, in the near

future the Board intends to issue guidance to assist in clarifying the intent of that terminology.

3. Removing the definition of Assumption and revising the definition of Extraordinary Assumption

– The

Board deleted the definition of Assumption, as its use is not intended to differ from the generally accepted

meaning of the word. The Board also adopted a revised definition of Extraordinary Assumption, with

administrative edits, in an effort to clarify that term and its applicability.

4. Revising the definition of Appraisal Review, and dividing STANDARD 3,

Appraisal Review

, into STANDARD

3,

Appraisal Review, Development

and STANDARD 4,

Appraisal Review, Reporting

– The Board adopted

changes proposed in the Third Exposure Draft to edit the definition of Appraisal Review to include its use as

an adjective. The Board also adopted the proposed revisions to divide STANDARD 3, Appraisal Review, into

STANDARD 3, Appraisal Review, Development and STANDARD 4, Appraisal Review, Reporting. The edits are

intended to improve consistency with the other development and reporting standards.

5. Dividing STANDARD 6,

Mass Appraisal

, into STANDARD 5,

Mass Appraisal, Development

and

STANDARD 6,

Mass Appraisal, Reporting

– The Board adopted the changes proposed in the Third

Exposure Draft to divide STANDARD 6, Mass Appraisal, into STANDARD 5, Mass Appraisal, Development

and STANDARD 6, Mass Appraisal, Reporting. The edits are intended to create greater consistency among

the other development and reporting standards. For example, the term “describe” used in the reporting

requirement of a mass appraisal was changed to “summarize” to be more consistent with the requirements of

an Appraisal Report.

6. Removing the term Market Value from STANDARDS 7 and 8

– The Board adopted revisions to Standards

Rules 7-2(c), 7-5, 8-2(a)(v), 8-2(a)(viii) and 8-2(b)(viii) as proposed in the Third Exposure Draft. The Board

adopted removal of the term market value from the personal property development and reporting standards,

in order to clarify that certain requirements are not limited to market value assignments but are required

whenever necessary for credible assignment results.

7. Revision to the personal property certification requirements in Standards Rule 8-3

– The Board adopted

revisions to the personal property certification in Standards Rule 8-3 as proposed in the Third Exposure Draft,

to allow personal property appraisers, in assignments involving different types of specialties, to sign the

certification without making them accountable for the assignment results of items which they did not appraise.