At its public meeting in Kansas City MO on April 5, 2019, the Appraisal Standards Board (ASB) of The Appraisal Foundation adopted changes to USPAP for the 2020-21 edition.
The Board adopted its Fourth Exposure Draft, which had been issued on February 27, 2019, albeit with some revisions. For example, the Board voted not to adopt the proposed definitions of “significant appraisal assistance,” “summarize,” and “state” from the exposure draft.
The current written report options (Appraisal Report and Restricted Appraisal Report) are being retained for 2020-21. One of the more significant revisions is that use of the Restricted Appraisal Report will be permitted when there are intended users in addition to the client. An appraiser will be required to identify these additional intended users by name in the report.
A new Advisory Opinion (AO-38) has been created, titled Content of an Appraisal Report and Restricted Appraisal Report. This new AO will replace AO-11 and AO-12 which have been retired.
The Foundation will be authoring a Summary of Changes document about the pending revisions to USPAP within the next several weeks. They will also be producing a recorded webinar on the changes. The new USPAP becomes effective on January 1, 2020, so there is still plenty of time to learn about the changes to USPAP before they go into effect.
Written by Dan Bradley. Daniel A. Bradley, SRA, CDEI is the Director of Online Appraisal Curriculum for McKissock Learning. He has been a practicing real property appraiser since 1987, and has been instructing and authoring appraisal courses since 1992. He is a state certified general appraiser in Pennsylvania and is currently on the FHA appraiser roster. From 2004 to 2013, Dan was a member of the Pennsylvania State Board of Certified Real Estate Appraisers, serving for five years as vice-chairman and three years as chairman. He has also has served as a contracted expert witness appraisal reviewer for the Pennsylvania Department of State.