The Appraisal Standards Board (ASB) of The Appraisal Foundation recently announced that it has adopted final changes to the 2018/2019 version of the Uniform Standards of Professional Appraisal Practice (USPAP).
In order to reach these final changes, the ASB first issued a discussion draft back in January of 2016 – followed by three exposure drafts of proposed USPAP revisions. The board then received both oral and written comments in response to each document, which were read and carefully considered. From here, the ASB then developed a work plan to address the issues that were brought forward.
Listed below are the final changes that were adopted for the 2018/2019 version of USPAP:
1) Revising the definition of Report, and edits to the ETHICS RULE and RECORD KEEPING RULE.
2) Creating a definition of Assignment Conditions, revising the definitions of Assignment, Intended Use, and Intended User, and related edits to the COMPENTENCY RULE.
3) Removing the definition of Assumption, and revising the definition of Extraordinary Assumption.
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.
5) Dividing STANDARD 6, Mass Appraisal, into STANDARD 5, Mass Appraisal, Development and STANDARD 6, Mass Appraisal, Reporting.
6) Removing the term Market Value from STANDARDS 7 and 8.
7) Revision to the personal property certification requirements in Standards Rule 8-3.
8) Revision to the illustration in Advisory Opinion 21, USPAP Compliance.
9) Creation of Advisory Opinion 37, Computer Assisted Valuation Tools.
10) Revisions to Advisory Opinion 31, Assignments Involving More than One Appraiser.
11) Revisions to Advisory Opinion 1, Sales History.
12) Revisions to Advisory Opinion 32, Ad Valorem Property Tax Appraisal and Mass Appraisal Assignments.
The 2018/2019 version of USPAP will officially become effective on January 1, 2018.
For more information on these final changes, including detailed descriptions, check out the ASB’s announcement.