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PO Box 1212 Pinellas
TOOLS Updated April 2018
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2018-2019 USPAP Changes
Overview: On February 3, 2017, the Appraisal Standards Board (ASB) adopted modifications to the Uniform
Standards of Professional Appraisal Practice (USPAP). This action began in earnest with the
issuance of a Discussion Draft in January 2016, followed by three exposure drafts of proposed
revisions to USPAP. Written comments were received in response to each document, and oral
comments were provided at each of four public meetings. Each member of the ASB read and
carefully considered every comment. The Board then developed a work plan to address the issues
brought forward, and adopted revisions for the 2018-19 edition of USPAP.
The following changes were adopted by the Board in a public meeting on February 3, 2017, and
will be incorporated in the 2018-19 edition of USPAP and associated guidance material with an
effective date of January 1, 2018:
Revising the definition of Report and edits to the ETHICS RULE and RECORD KEEPING
RULE
The Board adopted proposed revisions in the Third Exposure Draft to clarify the definition of
Report, as well as edits to the ETHICS RULE and the RECORD KEEPING RULE applicable to
the communication of assignment results. As put forth in the Third Exposure Draft, the Board did
not adopt revisions related to communications of assignments results prior to the completion of
the assignment other than the ethical and record keeping requirements that appear in that section.
Although there was support for specifically addressing draft reports, the Board also learned that
there were significant unintended consequences that might occur with the adoption of any such
requirements.
Creating a definition of Assignment Conditions, revising the definitions of Assignment,
Intended Use and Intended User, and related edits to the COMPETENCY RULE
The Board created a definition of Assignment Conditions, a term that had only been previously
referenced in the SCOPE OF WORK RULE. The Board also adopted revisions intended to clarify
the definitions of Assignment, Intended Use, and Intended User, as well as making related edits to
the COMPETENCY RULE to clarify an appraiser's obligations prior to agreeing to perform an
assignment. Although the Board did not revise the language "at the time of the assignment," the
Board did receive comments expressing concern with its meaning. Therefore, in the near future
the Board intends to issue guidance to assist in clarifying the intent of that terminology.
Removing the definition of Assumption and revising the definition of Extraordinary
Assumption
The Board deleted the definition of Assumption, as its use is not intended to differ from the
generally accepted meaning of the word. The Board also adopted a revised definition of
Extraordinary Assumption, with administrative edits, in an effort to clarify that term and its
applicability.
Revising the definition of Appraisal Review, and dividing STANDARD 3, Appraisal Review,
into STANDARD 3, Appraisal Review, Development and STANDARD 4, Appraisal Review,
Reporting
The Board adopted changes proposed in the Third Exposure Draft to edit the definition of
Appraisal Review to include its use as an adjective. The Board also adopted the proposed revisions
to divide STANDARD 3, Appraisal Review, into STANDARD 3, Appraisal Review, Development
and STANDARD 4, Appraisal Review, Reporting. The edits are intended to improve consistency
with the other development and reporting standards.
Dividing STANDARD 6, Mass Appraisal, into STANDARD 5, Mass Appraisal, Development
and STANDARD 6, Mass Appraisal, Reporting
The Board adopted the changes proposed in the Third Exposure Draft to divide STANDARD 6,
Mass Appraisal, into STANDARD 5, Mass Appraisal, Development and STANDARD 6, Mass
Appraisal, Reporting. The edits are intended to create greater consistency among the other
development and reporting standards. For example, the term "describe" used in the reporting
requirement of a mass appraisal was changed to "summarize" to be more consistent with the
requirements of an Appraisal Report.
Removing the term Market Value from STANDARDS 7 and 8
The Board adopted revisions to Standards Rules 7-2(c), 7-5, 8-2(a)(v), 8-2(a)(viii) and 8-2(b)(viii)
as proposed in the Third Exposure Draft. The Board adopted removal of the term market value
from the personal property development and reporting standards, in order to clarify that certain
requirements are not limited to market value assignments but are required whenever necessary for
credible assignment results.
Revision to the personal property certification requirements in Standards Rule 8-3
The Board adopted revisions to the personal property certification in Standards Rule 8-3 as
proposed in the Third Exposure Draft, to allow personal property appraisers, in assignments
involving different types of specialties, to sign the certification without making them accountable
for the assignment results of items which they did not appraise.
Revision to illustration in Advisory Opinion 21, USPAP Compliance
The Board adopted the addition of a new graphic in Advisory Opinion 21, USPAP Compliance, as
proposed in the Third Exposure Draft, and it will replace the chart beneath the longstanding
"ovals." The new chart better illustrates the relationship between Valuation Services and Appraisal
Practice.
Creation of Advisory Opinion 37, Computer Assisted Valuation Tool
The Board created Advisory Opinion 37, Computer Assisted Valuation Tools, as proposed in the
Third Exposure Draft. The new Advisory Opinion addresses an appraiser's obligations when
relying upon adjustments, trend analyses, or other information generated by software or various
online services.
Revisions to Advisory Opinion 31, Assignments Involving More than One Appraiser
The Board adopted revisions to Advisory Opinion 31, Assignments Involving More than One
Appraiser, as proposed in the Third Exposure Draft, to help clarify guidance related to significant
appraisal assistance.
Revisions to Advisory Opinion 1, Sales History
The Board adopted revisions to Advisory Opinion 1, Sales History, as proposed in the Third
Exposure Draft (with deletion of lines 1749-1752), to help clarify guidance related to an
appraiser's proper analysis and reporting related to a subject property's prior and pending sales
and current listings.
Revisions to Advisory Opinion 32, Ad Valorem Property Tax Appraisal and Mass Appraisal
Assignments
The Board adopted revisions to Advisory Opinion 32, Ad Valorem Property Tax Appraisal and
Mass Appraisal Assignments, as proposed in the Third Exposure Draft, to reflect the adopted
changes to STANDARDS 5 and 6.
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