7.

Compliance with USPAP: personal property, business valuation And intangible asset appraisers

Question:

Are personal property, business valuation and intangible asset appraisers required to comply with USPAP?

Response:

The PREAMBLE describes the obligation of all appraisers to act ethically:

The appraiser’s responsibility is to protect the overall public trust and it is the importance of the role of the appraiser that places ethical obligations on those who serve in this capacity. USPAP reflects the current standards of the appraisal profession.

The PREAMBLE further states:

USPAP does not establish who or which assignments must comply…Compliance with USPAP is required when either the service or the appraiser is obligated to comply by law or regulation, or by agreement with the client or intended users.  When not obligated, individuals may still choose to comply. (Bold added for emphasis)

Real property appraisers are often legally bound to comply with USPAP by applicable laws.  There are no such laws binding non-real property appraisers to comply with USPAP.  However, many non-real property appraisers either choose or agree to comply with USPAP in their assignments. The decision to comply may be prompted by affiliation with a professional appraisal organization or the preference of the client.