Uniform Standards of Professional Appraisal Practice
In 1987 the federal government established a detailed list of minimum standards for appraisers, known as the Uniform Standards of Professional Appraisal Practice, or USPAP. The Financial Institutions Reform, Recovery, and Enforcement Act of 1989 recognized USPAP as the generally accepted appraisal standard and requires USPAP compliance for appraisers in federally related transactions. Since that time, USPAP has been updated and adjusted every two years to reflect changes in the appraisal profession.
According to the Appraisal Foundation, “USPAP represents the generally accepted and recognized standards of appraisal practice in the United States.” Over the years, USPAP has become the standard required by most users of appraisal services in North American and much of the world. The IRS states: “An appraisal will be treated as having been conducted in accordance with generally accepted appraisal standards within the meaning of §170(f)(11)(E)(i)(II) if, for example, the appraisal is consistent with the substance and principles of the USPAP.”
All appraisal reports must include a signed and dated certification that these USPAP requirements have been fulfilled. Among the many stipulations, USPAP requires that the appraiser act as a neutral, disinterested third party, who reports the facts in an unbiased manner. These and other requirements comprise the “standard of care” to which appraisers must adhere. For information about the federal minimum standards for appraisers (USPAP) you may contact The Appraisal Foundation
Neither USPAP nor the Appraisal Foundation “certify” appraisers.