What is USPAP?

USPAP Basics

USPAP, an acronym for the Uniform Standards of Professional Appraisal Practice, delineates the guidelines for conducting real estate appraisals and outlines the criteria for attaining professional status as an appraiser. Oversight of USPAP falls under the purview of the Appraisal Standards Board (ASB), an entity established by Congress and entrusted with the responsibility of enforcing appraisal standards within the framework of the Appraisal Foundation, an independent organization.

USPAP undergoes periodic revisions, typically on an annual basis, encompassing several key components:

  • A comprehensive list of Definitions.

  • A Preamble articulating the fundamental mission of the document.

  • Five overarching appraisal Rules: Ethics, Competency, Scope of Work, Jurisdictional Exception, and Supplemental Standards.

  • Ten detailed appraisal Standards, each accompanied by specific rules governing the processes involved in appraisal development and reporting.

  • Supporting Statements aimed at elucidating or supplementing these Standards.

  • Advisory Opinions addressing the practical application of USPAP in diverse real-world scenarios and delineating appropriate governance.

Often regarded as the cornerstone of appraisal practice, adherence to USPAP is mandatory for all appraisers, typically mandated by state regulations. Appraisers are required to maintain familiarity with USPAP through periodic Continuing Education, ensuring ongoing comprehension of foundational principles and awareness of new Advisory Opinions and annual updates to USPAP.

Prior to 1987, consumers lacked a formal mechanism for assessing the quality of their appraisals, relying solely on trust in the appraiser's adherence to implicit appraisal norms. USPAP emerged to establish a standardized framework, fostering trust between appraisers and their clientele. Certification or licensure under USPAP ensures that an appraiser's work adheres to exacting standards, providing clients with assurance of reliability and integrity.

Conundrum Appraisals is licensed and well-versed in the Uniform Standards of Professional Appraisal Practice.