USPAP April Q&A's - Changes to Ethics Rule

The Appraisal Foundation has post the April USPAP Q&A's on their website. This months Q&A's deal with upcoming ethics rule changes, effective January 1, 2010 for the upcoming new USPAP release. I would recommend appraisers, especially those who update appraisal values for clients or have an opportunity to re-appraiser property for a new owner to carefully review the changes.

The Q&A's state:

If known prior to accepting an assignment, and/or if discovered at any time during the assignment, an appraiser must disclose to the client, and in the subsequent report certification:

• any current or prospective interest in the subject property or parties involved; and

• any services regarding the subject property performed by the appraiser within the three year period immediately preceding acceptance of the assignment, as an appraiser or in any other capacity.

Comment: Disclosing the fact that the appraiser has previously appraised the property is permitted except in the case when an appraiser has agreed with the client to keep the mere occurrence of a prior assignment confidential. If an appraiser has agreed with a client not to disclose that he or she has appraised a property, the appraiser must decline all subsequent assignments that fall within the three year period.

The goal of maintaining public trust makes it important that the client have knowledge regarding an appraiser’s prior services associated with the subject property in advance of engaging that appraiser.

To read the full Q&A which has much depth and situational context for the change, click HERE.