Proposed 2016-17 USPAP Changes

Comments Requested for Additional Proposed Changes to USPAP 2016-17 USPAP

Comments Requested for Additional Proposed Changes to USPAP 2016-17 USPA

The Appraisal Foundation’s Appraisal Standards Board has issued a third exposure draft of proposed changes to its 2016-17 edition of the Uniform Standards of Professional Appraisal Practice, and is seeking feedback on the proposed changes by Oct. 10.

Among the proposed changes is an adjustment to the definition of report, which currently is defined as “any communication, written or oral, of an appraisal or appraisal review that is transmitted to the client upon completion of an assignment.” The proposed definition would read “Any communication, transmitted to the client or to a party authorized by the client, of an appraisal or appraisal review that includes a signed certification.”

A modified recordkeeping rule would require appraisers to track communications with clients prior to report submissions and keep those communications in the work file as well as summaries of oral communications.

The exposure draft also includes changes to Standard 3 and the effective date of appraisal review. Currently, Standard 3 requires a reviewer to report the date of the work that is being reviewed, the effective date of the opinions and conclusions in the work under review, the effective date of the appraisal review and the date of the appraisal review report. The proposed change advocates overruling the requirement for reviewers to report the effective date of an appraisal review, which would align this standard with others.

Also, the ASB is looking to retire all 10 Statements on Appraisal Standards, five of which already have been retired. The remaining five that may be retired are: Discounted Cash Flow Analysis, Retrospective Value Opinions, Prospective Value Opinions, Reasonable Exposure Time in Real Property and Personal Property Opinions of Value and the Identification of Intended Use and Intended Users.

Additionally, proposed revisions to the confidentiality section of the Ethics Rule would require appraisers to take reasonable steps at the beginning of an assignment to let clients know they are responsible for identifying materials that should remain confidential. And then appraisers are responsible for maintaining that confidentiality in their offices and preventing the unauthorized sharing of private information.

New rules also would add language requiring notice in reports when clients wish to remain anonymous.

~ Source Appraisal Institute (AI)



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Proposed 2016-17 USPAP Changes

by AppraisersBlogs time to read: 2 min