The ASB has just released the second exposure draft for the 2020-2021 edition of USPAP.
To download the second exposure draft, CLICK HERE.
The ASB reports
The Executive summary statesThe Appraisal Standards Board has issued a Second Exposure Draft of proposed changes for the 2020-21 edition of the Uniform Standards of Professional Appraisal Practice (USPAP) on the following topics:
- STANDARDS
- SCOPE OF WORK RULE
- COMPETENCY RULE
- DEFINITIONS
Other edits to improve clarity and enforceability of USPAP
The proposed changes to the Advisory Opinions will be exposed soon.
The written comment deadline is October 10, 2018. To submit comments on the proposals, please email ASBcomments@appraisalfoundation.org.
Executive Summary
Second Exposure Draft of Proposed Changes for the 20
20-21 USPAP
This Executive Summary is intended to be a brief discussion of each section in the document. Because some readers may not have an interest in every section of the document, the Executive Summary gives an overview to help readers find the sections related to their specific interest(s). For detailed information on proposed revisions and the reasons for the proposals, the ASB encourages readers to review the rationale as well as the specific changes being proposed. As always, the ASB requests readers to submit any relevant comments.
Section 1 – STANDARDS (Reporting Options and Comments
in Standards Rules)
Reporting Options
The ASB is proposing significant revisions to STANDARDS 2, 8, and 10. Rather than limiting appraisal reports to either a one-size-fits-all or the current two-sizes-fits-all reporting options, the ASB is proposing a model that reduces the specificity without diminishing the USPAP reporting requirements. The Board is also proposing the elimination of report labels and specific warning language, electing instead to propose a simpler but more comprehensive requirement: “If there are use restrictions or other limitations, the appraiser must state them accurately, clearly, and conspicuously.” The ASB is proposing some parallel changes to STANDARDS 4 and 6 as
appropriate for consistency.
Comments in Standards Rules
In the First Exposure Draft the ASB proposed several actions related to Comments
in the Standards Rules and demonstrated a model of this proposal for STANDARD 1. These actions included deleting some Comments that had duplicate requirements clearly stated elsewhere and incorporating others directly into the Standards Rules. The response to the First Exposure Draft indicated these actions were helpful in increasing the clarity of USPAP. For the Second Exposure Draft all of the STANDARDS include revisions to the Comments Some have been reworded, deleted, moved, or incorporated into the Standards Rules
.
Section 2 – SCOPE OF WORK RULE
In the First Exposure Draft, the ASB proposed changes to the SCOPE OF WORK RULE which would remove references to disclosure obligations under this RULE. After considering responses to this proposal, the ASB is now proposing to add language to the Disclosure Obligations section of the SCOPE OF WORK RULE to clarify the nature, form and format of disclosure.
Section 3 – COMPETENCY RULE
The ASB proposes to move the following important Comment out of Standards Rules 1-1, 3-1, 5- 1, 7-1, and 9-1 and place it into the COMPETENCY RULE:
“Perfection is impossible to attain, and competence does not require perfection. However, an appraiser must not render appraisal services in a careless or negligent manner. ThisStandards Rule requires an appraiser to use due diligence and due care.”This particular Comment currently appears only in the development Standards Rules, but it has been pointed out that it should also apply to reporting. The proposal in this Second Exposure Draft inserts an edited version of the Comment into the COMPETENCY RULE. This move reduces duplication and, at the same time, broadens the applicability of this important Comment since the COMPETENCY RULE applies to both development and reporting in all disciplines.
Section 4 – DEFINITIONS
Based upon responses received from the First Exposure Draft, the ASB is proposing some modifications and additions to the DEFINITIONS in order to help readers better understand USPAP. Both exposure drafts propose to include USPAP terms that differ from or are not found in popular English dictionaries and also, in a few instances, to indicate which popular dictionary definition is meant to be used if there are multiple definitions.
Section 5 – Other Edits to Improve Clarity and Enforceability of USPAP
The Board is proposing several edits for clarity and consistency. The edits are related to the following three terms or phrases:
1.Accept an assignment
2. At the time of the assignment
3.Intangible Items
Note that the Part II of the Second Exposure Draft – Proposed Changes to the Advisory Opinions, will follow shortly.
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