Appraisal Practice and Professional Standards (USPAP)
What the exam tests
Appraisal Practice and Professional Standards questions test whether you can apply the current USPAP Rules and Standards to residential assignments, not just recite definitions. Expect problem identification, scope of work, competency, record keeping, and report-option choices.
Core rules
- USPAP is principles-based. The Rules are Ethics, Competency, Scope of Work, Jurisdictional Exception, and Record Keeping.
- Standards 1 and 2 govern appraisal development and reporting. Standards 3 and 4 govern appraisal review.
- Problem identification includes client and intended users, intended use, type and definition of value, effective date, relevant property characteristics, and assignment conditions.
- Competency requires the knowledge and experience to complete the assignment competently, or disclosure and steps to gain competency.
- A workfile supports the report and must be retained for five years after the report date or at least two years after final disposition of a judicial proceeding, whichever is later.
Worked example
A lender asks for a drive-by appraisal of a 1978 ranch for a refinance. The client names the lender as intended user and lending as intended use. The appraiser identifies market value as defined by the client, inspects only the exterior, and uses MLS photos and county records for the interior. The scope of work is consistent with the intended use only if the appraiser discloses the extraordinary assumption that the interior condition is as represented and the report states the extent of inspection. The report cannot be labeled a Restricted Appraisal Report if the lender intends to share it with other users; restricted reports limit intended users.
Traps
Unsigned certification; using a value definition without stating it; relying on an extraordinary assumption without disclosing it; retaining workfiles only two years; calling an oral report a restricted report.