USPAP Applicability (AO-30)

A client that is a federally regulated financial institution expects compliance with the applicable regulations and guidelines. An appraiser’s obligations are established in the course of considering and accepting an assignment. Appraisers must recognize and adhere to assignment conditions that apply in an assignment to satisfy the following USPAP requirements:

1.	The PREAMBLE requires that appraisers develop and communicate assignment results in a manner that is meaningful and not misleading.
2.	The ETHICS RULE requires that appraisers perform assignments ethically and competently.
3.	The COMPETENCY RULE requires appraisers to provide competent service, including the specific requirement to recognize and comply with applicable laws and regulations.
4.	In developing assignment results, the SCOPE OF WORK RULE requires appraisers to determine, perform, and disclose the scope of work necessary to produce credible assignment results. Determining the appropriate scope of work requires identification of the problem to be solved, which includes identification of assignment conditions. The scope of work is acceptable when it meets or exceeds the expectations of parties who are regularly intended users for similar assignments. Upon accepting an assignment, an appraiser is obligated to competently satisfy the applicable assignment conditions.
5.	Standards Rule 1-1(a) is an extension of the COMPETENCY RULE that specifically requires that the appraiser be aware of, understand, and correctly employ those recognized methods and techniques that are necessary to produce a credible appraisal.
6.	Standards Rules 2-1(a) and 2-1(b) require that each written appraisal report (a) clearly and accurately set forth the appraisal in a manner that will not be misleading; and (b) contain sufficient information to enable intended users of the appraisal to understand the report properly.
7.	STANDARD 2 also requires that report content be consistent with the intended use of the appraisal.

Use of the JURISDICTIONAL EXCEPTION RULE is not appropriate because none of the requirements in the agencies’ appraisal laws and regulations are contrary to USPAP.

Appraisers must identify and consider the intended use and intended users in an assignment to understand their USPAP development and reporting obligations. The agencies’ appraisal regulations and guidelines contain assignment conditions that are part of competent performance when they apply in an assignment. Therefore, compliance with USPAP requirements for proper development and reporting require adherence to those assignment conditions that apply in an assignment.

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