What's In and What's Out

USPAP 2000 is in and SMT-1 is out, while AO-19 is in: huh?

No, USPAP is not a medical test. It's appraisalese for Uniform Standards of Professional Appraisal Practice and SMT-1 is a redundant review appraisal statement that is out. AO-19, on the other hand, is in, discussing the conditions under which appraisal assignments should not be accepted.

AO-19 advises when it is okay to respond to assignment requests without violating USPAP. Certain conditions are unacceptable because performing an assignment under such conditions violates USPAP.

Specifically, a condition is unacceptable if it precludes an appraiser's impartiality or if it limits the scope of work so that the results are not credible or are misleading.

Appraisers should decide what levels of risk are associated with the service and assignment and whether any unacceptable conditions exist.

This does not mean the appraiser can’t provide a competitive service. The scope of the work can vary depending on the purpose and use and remain in compliance with USPAP. Assignment limitations, however, do affect the level of risk accepted by each party.

Also, USPAP now explicitly states that appraisers must "act in good faith" concerning the legitimate interests of the client in the use of confidential information and in the communication of the assignment results. Confidential information is information unavailable elsewhere, received from and identified by the client as being confidential when given to the appraiser.

Steve
Stephen Traub, ASA
Publisher, PVM ^SM

The author, Stephen Traub, ASA, is Chief Commercial Appraiser for Property Valuation Advisors, Newburyport, MA. He is a certified general appraiser in NH, ME and MA. He can be reached at 978-462-4347 or:
by e-mail: straub@shore.net