Appraisal Standards and USPAP
The Structure of USPAP
USPAP has standards (development and reporting), standards rules (ethics, competency, scope of work, jurisdiction exception), and statements and advisory opinions. Know that the Ethics Rule, Competency Rule, Scope of Work Rule, and Jurisdictional Exception Rule apply to all assignments. Development standards address the process; reporting standards address the report.
Scope of Work
Scope of work must be problem-specific, not a fixed checklist. It must be sufficient to produce credible results and is judged against what the appraiser's peers would do. A trap: assuming a minimum scope of work exists-it does not; it is defined by the problem.
Reporting Options
Know Appraisal Report versus Restricted Appraisal Report; the difference is in the level of summary versus detail and the intended user. Oral reports are permitted but must comply with reporting standards. The certification must be signed and dated.
Worked Rule of Thumb
If a client requests a limited scope but the appraiser cannot produce credible results, the appraiser must decline or expand the scope-never simply comply. The test: would a peer, with the same problem, find this scope sufficient?
Exam Traps
Do not confuse extraordinary assumptions (uncertain, must be disclosed) with hypothetical conditions (contrary to fact). Both must be clearly stated and necessary for intended use.