Appraisal Standards and Ethics (USPAP)
The USPAP framework
USPAP establishes ethical conduct, competency, scope of work, record keeping, and reporting requirements. The ETHICS RULE requires independence, impartiality, and objectivity. The COMPETENCY RULE permits an appraiser to acquire the necessary competence before completing an assignment. Standards 1 and 2 govern development and reporting of real property appraisals. The SCOPE OF WORK RULE requires work necessary for credible assignment results. The RECORD KEEPING RULE generally requires a workfile for at least five years after the report date or two years after final disposition of litigation.
Traps
USPAP does not prescribe specific valuation methods; it requires a credible process. Remember that "must" is mandatory and "should" is advisory. Confidentiality has recognized exceptions, including state regulatory review, peer review, and legal process. An extraordinary assumption, if false, could alter the value; a hypothetical condition is contrary to fact by design. Certifications must accurately describe what was done.
Worked example
An appraiser certifies an interior inspection that never occurred. Even if the value is reasonable, the certification violates the ETHICS and reporting rules. Rule of thumb: the workfile should let another appraiser reconstruct the assignment without guessing.