Summary of Actions Related to Proposed USPAP Changes
Potential changes and additions to USPAP
On February 1, 2013, the Appraisal Standards Board (ASB) adopted modifications to the Uniform Standards of Professional Appraisal Practice (USPAP). This action was the culmination of a period of 15 months and multiple discussion drafts, requests for comments, and three exposure drafts. Written comments were received in response to each document, and oral comments were provided at each public meeting. The ASB read and carefully considered every comment, developed a work plan to address the issues brought forward, and adopted revisions for the 2014-15 edition of USPAP.
1. Revisions adopted for 2014-15 USPAP
The following changes were adopted by the Board on February 1, 2013, and will be incorporated in the 2014-15 edition of USPAP and associated guidance material with an effective date of January 1, 2014:
- Revisions to the DEFINITIONS of “Assignment Results” and “Scope of Work”
- Revisions to the PREAMBLE
- Revisions to the Conduct section of the ETHICS RULE
- Revisions to the COMPETENCY RULE
- Revisions to Reporting Requirements, including the type and number of Report Options
- Revisions to Standards Rule 3-5
- Retirement of STANDARDS 4 and 5
- Revisions to Advisory Opinion 11, Content of the Appraisal Report Options of Standards Rules 2-2 and 8-2 and Advisory Opinion 12, Use of the Appraisal Report Options of Standards Rules 2-2 and 8-2
The Board is also considering revisions to Advisory Opinion 21 (AO-21), USPAP Compliance which, if adopted, will appear in the 2014-15 USPAP. Changes to Advisory Opinion 13 (AO-13), Performing Evaluations of Real Property Collateral to Conform with USPAP are also being considered; any changes to AO-13 would be effective upon adoption.
2. Revisions not adopted for 2014-15 USPAP
As stated in the Third Exposure Draft, the Board elected not to adopt the proposed revisions to the following topics at this time:
- Proposed Revisions to the DEFINITION of “Report”
- Proposed Revisions to the RECORD KEEPING RULE
3. Summary
The goal of the Uniform Standards of Professional Appraisal Practice is to promote and maintain a high level of public trust in appraisal practice by establishing requirements for appraisers. All potential changes and additions to USPAP are evaluated in light of this goal. The adopted changes are intended to improve the clarity, understanding and enforcement of USPAP, thereby furthering the goal of promoting and maintaining public trust in appraisal practice.
In reviewing comment letters received on the exposure drafts, the ASB’s primary focus is the reasoning and insight presented in the letters, rather than the source or authorship. The ASB is guided by the quality, relevancy, and accuracy of the points made, and not their frequency.
The actions taken by the Board, and rationale for those decisions, are discussed below. With the exception of minor administrative edits, the Board acted on the proposed revisions to USPAP as contained in the Third Exposure Draft as shown on the following pages.
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