The 2010-2011 edition of USPAP will be valid for two years, effective January 1, 2010 through December 31, 2011.  The new edition also includes guidance from the ASB in the form of the USPAP Advisory Opinions and the USPAP Frequently Asked Questions (FAQs)

 

There are some significant changes that will affect Appraisers in the new USPAP including:

 

>> Changes to the Conduct Section of the ETHICS RULE requiring disclosure of prior appraisals (and other services) in the preceding 3 years.

 

By far the USPAP change having the greatest potential impact on the Appraiser is a new ETHICS RULE requirement calling for appraisers to disclose to potential Clients, any prior appraisals (or other services rendered) of the subject property, provided in the 3 years immediately preceding acceptance of the assignment. 

 

This rule requires disclosure prior to acceptance of the assignment (or upon discovery - if discovered at any time during the completion of the assignment).  It is also required that the appraiser disclose this information again in the report Certification.

 

In commonly used “form reports” such as the 1004, a supplemental certification will need to be added to the report when making this disclosure.  While prohibited from “deleting or modifying” certifications, appraisers are not prohibited from adding supplementary certifications that do not constitute deletion or material alteration of existing certifications.

 

If an appraiser has provided a previous service with regard to the subject property, the appraiser must disclose this information prior to acceptance of the assignment (or upon discovery) and then again in the report's certification.  Appraisers should use a statement similar in content to the following:

Sample Comments

 

I HAVE PERFORMED A PRIOR APPRAISAL OF THE SUBJECT PROPERTY WITHIN THE 3 YEAR PERIOD IMMEDIATELY PRECEDING ACCEPTANCE OF THIS APPRAISAL ASSIGNMENT.

 

I PREVIOUSLY APPRAISED THE PROPERTY, THAT IS THE SUBJECT OF THIS ASSIGNMENT, WITHIN THE 3 YEAR PERIOD IMMEDIATELY PRECEDING ACCEPTANCE OF THIS APPRAISAL ASSIGNMENT.

 

I HAVE PERFORMED A PRIOR SERVICE (note type of service) CONCERNING THE SUBJECT PROPERTY WITHIN THE 3 YEAR PERIOD IMMEDIATELY PRECEDING ACCEPTANCE OF THIS APPRAISAL ASSIGNMENT.

 

  

The requirement does NOT specifically require the appraiser to certify that no prior appraisals or services were provided in the last 3 years, however, in the spirit of the Certification, an appraiser may add (or the Client might request) a supplemental certification that is similar in content to the following: 

 

SUPPLEMENTAL CERTIFICATION

 

DISCLOSURE OF PRIOR APPRAISAL AND/OR OTHER SERVICES:  

 

I CERTIFY THAT, TO THE BEST OF MY KNOWLEDGE AND BELIEF:

 

I HAVE NOT PERFORMED ANY PRIOR SERVICES REGARDING THE SUBJECT PROPERTY, AS AN APPRAISER, OR IN ANY OTHER CAPACITY, WITHIN THE 3 YEAR PERIOD IMMEDIATELY PRECEDING ACCEPTANCE OF THIS APPRAISAL ASSIGNMENT.

 

Click to Order 2010-2011 USPAP from the Appraisal Foundation