The Uniform Standards of Professional Practice Assessment ( USPAP ) can be considered a quality control standard that applies to real property, private property, intangible assets, and valuation of business and reports in the United States and its territory. USPAP, as it is commonly known, was first developed in 1980 by a joint committee that represents the US and Canadian main assessment organizations. As a result of the savings and loan crisis, Yayasan Penilai (TAF) was formed by these same groups, along with support and input from major industry and education groups, and TAF took over the administration of USPAP.
The Reform of Financial Institutions, Restoration and Enforcement Act 1989 (FIRREA) authorizes the Appraisal Subcommittee (ASC), which consists of representatives from leading US government agencies and non-governmental organizations empowered to oversee US mortgages and banking systems. ASC provides oversight to TAF.
TAF performs its work through two divisions - the Assessment Standards Board (ASB) and the Board of Certification Appraisers (AQB). The last group sets minimum qualifications for licensing licenses, and its work has been adopted by all states and territories. ASB retains USPAP, and publishes updates in January even an even year.
All US states and territories require a rating license for assessment work done for federally regulated agencies; however, 35 US states and territories require a license assessment for all all assessment works performed, whether or not they are federally-regulated.
Since 2006, USPAP has been updated in a 2-year cycle, which begins on January 1 and even a few years. The current version of USPAP is available at www.appraisalfoundation.org and has an effective date of 1 January 2016.
Video Uniform Standards of Professional Appraisal Practice
Origins
USPAP was originally written in 1986-87 by an ad hoc committee representing various assessment professional organizations in the US and Canada. The copyright for USPAP was donated to TAF on April 27, 1987. While USPAP responded to the need for special regulation in the US, it has also been adopted by many assessment professional organizations throughout North and South America, Europe, and Asia.
USPAP represents accepted and generally recognized standards of assessment practice. At its organizational meeting held on January 30, 1989, the Appraisal Standards Board (ASB) unanimously approved and adopted the original USPAP as an initial assessment standard announced by ASB. USPAP may be amended, interpreted, or retired by ASB upon exposure to users of the appraisal and public services in accordance with established rules of procedure.
Over the years, USPAP documents have evolved in the content and organizational structure in response to changes in assessment practice. ASB has developed a process to develop standards and guidelines based, in part, on written comments submitted in response to the draft of exposure and oral testimony.
Maps Uniform Standards of Professional Appraisal Practice
Standard vs. method
Although USPAP provides a set of minimum quality control standards for the conduct of assessments in the US, USPAP does not attempt to prescribe specific methods to use. In contrast, the USPAP only requires that the assessor be familiar and use the method correctly to be accepted by another appraiser familiar with the assignment at hand and acceptable to the expected user of the assessment. USPAP directs this through the so-called Work Scope rule. At the start of the assignment, the assessor is required to collect certain preliminary data about the project, such as the nature of the property to be assessed, the base value (eg market, investment, disturbance, undamaged), assessed interest (eg cost, partial), important assumptions or hypothetical conditions, and the effective date of the assessment. Based on this and other key information, assessors rely on peer assessment methodologies to formulate acceptable work plans.
USPAP and the International Assessment Standards
The USPAP and International Assessment Standards [IVS] are essentially aimed at the same goal. There has been cooperation between the TAF and the International Valuation Standards Council (IVSC) over a long period. In June, 2006, IVSC and TAF jointly issued a memorandum of understanding (MoU), called the "Madison Agreement", in which they pledged to work together towards the goal of reconciling the differences between the two sets of standards. By 2014, this is updated with a new MoU in which the parties committed to work to eliminate any remaining differences between the standards that will prevent the assessor after USPAP also comply with the requirements of the IVS.
In 2016, "Bridges from USPAP to IVS" were produced to help assessors familiar with USPAP to produce assessments that are also in line with IVS. Although the document outlines the additional steps needed to ensure compliance, a full review of both standards is always recommended. Both organizations noted that this joint effort revealed more similarities than differences in the two sets of standards.
References
External links
- http://www.uspap.org
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