Relevant USPAP & Advisory References (AO-18)

• Conduct section of the ETHICS RULE:
  An appraiser must perform assignments ethically and competently, in accordance with USPAP.
  An appraiser must not engage in criminal conduct.
  An appraiser must perform assignments with impartiality, objectivity, and independence, and without accommodation of personal interests.
  Further, An appraiser must not communicate assignment results in a misleading or fraudulent manner. An appraiser must not use or communicate a misleading or fraudulent report or knowingly permit an employee or other person to communicate a misleading or fraudulent report.

• COMPETENCY RULE: Prior to accepting an assignment or entering into an agreement to perform any assignment, an appraiser must properly identify the problem to be addressed and have the knowledge and experience to complete the assignment competently.

• SCOPE OF WORK RULE: The scope of work must include the research and analyses that are necessary to develop credible assignment results… Appraisers have broad flexibility and significant responsibility in determining the appropriate scope of work for an appraisal, appraisal review, and appraisal consulting assignment.” “The appraiser must be prepared to demonstrate that the scope of work is sufficient to produce credible assignment results…  An appraiser must not allow the intended use of an assignment or a client’s objectives to cause the assignment results to be biased.

• Standards Rule 1-1(a): An appraiser must be aware of, understand, and correctly employ those recognized methods and techniques that are necessary to produce a credible appraisal.

• Standards Rule 1-1(b): An appraiser must not commit a substantial error of omission or commission that significantly affects an appraisal.

• Standards Rule 1-1(c): An appraiser must not render appraisal services in a careless or negligent manner, such as by making a series of errors that, although individually might not significantly affect the results of an appraisal, in the aggregate affect the credibility of those results.

• Standards Rule 1-6(b): An appraiser must reconcile the applicability and relevance of the approaches, methods and techniques used to arrive at the value conclusion(s).

• STANDARD 2: In reporting the results of a real property appraisal, an appraiser must communicate each analysis, opinion, and conclusion in a manner that is not misleading.

• STANDARD 3: In performing an appraisal review assignment, an appraiser acting as a reviewer must develop and report a credible opinion as to the quality of another appraiser’s work and must clearly disclose the scope of work performed.

• Statement on Appraisal Standards No. 9 (SMT-9): Although an appraiser must identify and consider the intended use of the appraiser’s opinions and conclusions, an appraiser must not allow the objectives of the client or other intended users of the report to affect the appraiser’s independence and objectivity. An appraiser must not allow the objectives of a client or other intended users to cause the analysis or report to be biased.

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