USPAP 2018-2019 Edition
© The Appraisal Foundation
Physical characteristics are not assignment results.
a preference or inclination that precludes an appraiser’s impartiality, independence, or objectivity in an assignment
an entity pursuing an economic activity.
the interests, benefits, and rights inherent in the ownership of a business enterprise or a part
thereof in any form (including, but not necessarily limited to, capital stock, partnership interests, cooperatives, sole
proprietorships, options, and warrants).
the party or parties who engage, by employment or contract, an appraiser in a specific assignment.
Comment: The client may be an individual, group, or entity, and may engage and communicate with the
appraiser directly or through an agent.
information that is either:
• identified by the client as confidential when providing it to an appraiser and that is not available from any
other source; or
• classified as confidential or private by applicable law or regulation.
the amount required to create, produce, or obtain a property.
is either a fact or an estimate of fact.
worthy of belief.
Comment: Credible assignment results require support, by relevant evidence and logic, to the degree
necessary for the intended use.
: estimated length of time that the property interest being appraised would have been offered on
the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal.
Comment: Exposure time is a retrospective opinion based on an analysis of past events assuming a
competitive and open market.
an assignment-specific assumption as of the effective date regarding uncertain
information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions.
Comment: Uncertain information might include physical, legal, or economic characteristics of the subject
property; or conditions external to the property, such as market conditions or trends; or the integrity of data
used in an analysis.
a study of the cost-benefit relationship of an economic endeavor.
a condition, directly related to a specific assignment, which is contrary to what is
known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis.
Comment: Hypothetical conditions are contrary to known facts about physical, legal, or economic
characteristics of the subject property; or about conditions external to the property, such as market
conditions or trends; or about the integrity of data used in an analysis.
4See Confidentiality section of the ETHICS RULE.
5 For example, pursuant to the passage of the Gramm-Leach-Bliley Act in November 1999, some public agencies have adopted privacy
regulations that affect appraisers. The Federal Trade Commission (FTC) issued two rules. The first rule (16 CFR 313) focuses on the
protection of ”non-public personal information” provided by consumers to those involved in financial activities “found to be closely related
to banking or usual in connection with the transaction of banking.” These activities include “appraising real or personal property.” See GLB-
Privacy. The second rule (16 CFR 314) requires appraisers to safeguard customer non-public personal information. See GLB-Safeguards-
Rule. Significant liability exists for appraisers should they fail to comply with these FTC rules.
6 See Advisory Opinion 35,
Reasonable Exposure Time in Real and Personal Property Opinions of Value