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Standards of Professional Appraisal Practice

Effective January 1, 2015, the Appraisal Institute Standards of Professional Appraisal Practice are composed of:

  • The Standards of Valuation Practice (SVP), promulgated by the Appraisal Institute and the Certification Standard of the Appraisal Institute; or
  • applicable national or international Standards and the Certification Standard of the Appraisal Institute.

Preamble to the Standards of Professional Appraisal Practice  

View the Preamble to the Appraisal Institute Standards of Professional Appraisal Practice

Appraisal Institute Standards of Valuation Practice 

The Appraisal Institute has a long history as the leader of the valuation profession and as a developer of valuation standards. In 2013, in keeping with its historic role, as well as in recognition of the limitations of many valuation standards currently in existence, the Appraisal Institute Board of Directors directed  the development of high quality, straightforward,  principle-based standards that could be used where existing standards are not already required or do not apply. The Board believed that such standards should establish a high level of professional practice, engender public trust, enable valuers and the public to better understand the valuation standards and facilitate the growth and advancement of the valuation profession. The Board also concluded that such standards could help valuers better meet the evolving needs of clients and facilitate the variety of work that clients desire and that valuers now perform.

The Appraisal Institute Board of Directors has adopted a final version of the Appraisal Institute Standards of Valuation Practice (SVP). The SVP will become effective on January 1, 2015.  

  • Standard A establishes requirements for the development of an appraisal.
  • Standard B establishes requirements for the development of a review.
  • Standard C establishes requirements for the reporting of an appraisal or review.

View the Standards of Valuation Practice.

The Uniform Standards of Professional Appraisal Practice 

USPAP is a set of national Standards that is applicable for most U.S. appraisals. USPAP is developed by the Appraisal Standards Board (ASB) of the Appraisal Foundation.

  • Standards 1 and 2 establish requirements for the development and reporting of a real property appraisal.
  • Standard 3 establishes requirements for development and reporting of an appraisal review assignment involving a real property or personal property appraisal.
  • Standard 4-5 retired effective January 1, 2014.
  • Standard 6 establishes requirements for the development and reporting of mass appraisals.
  • Standards 7 and 8 establish requirements for the development and reporting of personal property appraisals.
  • Standards 9 and 10 establish requirements for the development and reporting of business or intangible asset appraisals.

USPAP also includes 10 Statements on Appraisal Standards which clarify, interpret, explain, or elaborate on a Standards Rule and which have the full weight of a Standards Rule and 32 Advisory Opinions which illustrate the applicability of appraisal standards in specific situations and offer advice from the Appraisal Standards Board for the resolution of appraisal issues and problems. Advisory Opinions do not establish or interpret existing standards.

USPAP can be purchased on the Appraisal Foundation website.

The ASB has issued the 2013 SUMMARY OF ACTIONS RELATED TO PROPOSED USPAP CHANGES, which includes the revisions adopted for the 2014-2015 edition USPAP.

Paula Konikoff, JD, MAI, chair of AI’s Professional Standards and Guidance Committee, discusses the USPAP Updates

The Certification Standard of the Appraisal Institute

The Appraisal Institute has adopted the Certification Standard to require specific certification statements that AI professionals must make.

View the Certification Standard of the Appraisal Institute.

International Valuation Standards (IVS)

IVS is an example of an international Standard that may be an applicable Standard for certain assignments. The IVS is developed by the International Valuation Standards Council (IVSC) and has been adopted or recognized by many valuation institutes, user groups, and financial regulators around the world. IVS can be purchased on the IVSC website.

Guide Notes to the Standards of Professional Appraisal Practice

The Appraisal Institute has developed and adopted the Guide Notes to the Standards of Professional Appraisal Practice to provide guidance as to how the requirements of the Standards may apply in specific situations.

 

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