Every two years, USPAP (Uniform Standards of Professional Appraisal Practice) gets an update. That doesn’t mean, of course, that all appraisers are learning about the updates in the same year that the new version of USPAP hits the streets. In fact many appraisers only take a USPAP class every 5 years! Or, as we discussed in the appraisal review posts, much less often. This puzzles me because we appraisers must sign a certification in our reports stating that our report is in compliance with USPAP. If USPAP updates every two years but an appraiser isn’t taking the 2 year update class, isn’t it questionable whether the report in question is really in compliance with the current USPAP?
It just so happened that the first USPAP class I took as an equipment appraiser was a introductory 15-hour in 2006, one of the update years. Since then I’ve been updating my certification every two years with a 7-hour refresher course. I happen to think that staying current with USPAP is an important part of being a qualified equipment appraiser. It’s certainly important when I’m working as an equipment appraisal reviewer.
If you’re an appraiser who hasn’t yet taken the required classes, you may be interested in the free “flip book” download offered by the Appraisal Foundation. This copy of the 2014-15 Uniform Standards of Professional Appraisal Practice is not, unfortunately, searchable, and neither can you copy and paste from the pages. You can, however, use it as a reference book until you take your next USPAP course and receive a printed copy of the book. In the meantime, if you missed the memo, here’s a brief overview of 7 notable changes in the 2014 USPAP:
- Revisions to Reporting Requirements, the most obvious of which involved titles of appraisal reports:
- Elimination of the Self-Contained Report
- Elimination of the Summary Appraisal Report
- Restricted Use Appraisal Report was renamed Restricted Appraisal Report, to be used only when the Client is the only Intended User of the report.
- Revisions to Standards Rule 3-5, which is now consistent with the standard to include the report date
- Retirement of Standards 4 & 5
- Revisions to the Competency Rule to expressly require the appraiser to perform competently
- Revisions to Definitions — Assignment Results & Scope of Work
- The new definition of Assignment Results (“An appraiser’s opinions or conclusions developed specific to an assignment”) is intended to clarify that these results are not specifically limited to
- Value conclusion in an appraisal assignment
- Final opinion of the quality of work in an appraisal review assignment
- The new definition of Scope of Work (“The type and extent of research and analyses in an appraisal or appraisal review assignment”) is intended to align more closely to the Scope of Work Rule
- The new definition of Assignment Results (“An appraiser’s opinions or conclusions developed specific to an assignment”) is intended to clarify that these results are not specifically limited to
- Revisions to Conduct Section of the Ethics Rule to clarify the conditions under which “services regarding the subject property … within the three year period” must be disclosed
- Revisions to Preamble to address when USPAP rules and standards apply and when they do not, in reference as to whether the work being performed is considered appraisal work
Jack Young, ASA, CPA
USPAP Compliant Equipment Appraiser
NorCal Valuation Inc.
