2016-2017 USPAP Modifications

The Appraisal Foundation and the Appraisal Standards Board have recently released  revisions for the 2016-2017 edition of the Uniform Standards of Professional Appraisal Practice.

The AF and the ASB report on the revisions

On February 6, 2015, 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 19 months and four exposure drafts of proposed revisions to USPAP and one exposure draft of new proposed Advisory Opinions and edits to an existing Advisory Opinion. Written comments were received in response to each document, and oral comments were provided at each of four public meetings. Each member of the ASB read and carefully considered every comment. The Board then developed a work plan to address the issues brought forward, and adopted revisions for the 2016-17 edition of USPAP.

1. Revisions adopted for 2016-17 USPAP

The following changes were adopted by the Board in a public meeting on February 6, 2015, and will be incorporated in the 2016-17 edition of USPAP and associated guidance material with an effective date of January 1, 2016:

 Revisions to the RECORD KEEPING RULE
 Revisions to STANDARD 3
 Revisions to the Definition of Assignment Results and Confidential Information and to the Confidentiality section of the ETHICS RULE (Note: this change included language that appeared in the Third Exposure Draft, but not in the Fourth Exposure Draft.)
 Revisions to Reporting Standards
 Other USPAP Edits
 Retirement of all STATEMENTS ON APPRAISAL STANDARDS
 ADVISORY OPINION 33: Discounted Cash Flow Analysis
 ADVISORY OPINION 34: Retrospective and Prospective Value Opinions
 ADVISORY OPINION 7: Marketing Time Opinions
 ADVISORY OPINION 35: Reasonable Exposure Time in Real and Personal Property Opinions of Value
 ADVISORY OPINION 36: Identification and Disclosure of Client, Intended Use, and Intended Users

2. Summary
The goal of USPAP 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 enforceability 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 of 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 on the following pages. With the exception of minor administrative edits, the Board acted on the proposed revisions to USPAP as contained in the Fourth Exposure Draft as shown on the following pages.

Source: The Appraisal Foundation