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Old 09-26-2007, 09:35 PM
James Andreas James Andreas is offline
Join Date: Nov 2003
Location: Granada Hills
State: California
Professional Status: Certified Residential Appraiser
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Default When Am I Not A USPAP Appraiser?

Scenerio: Estimating Market Value for Insurance or Tax Purposes

Was discussing with associate, and...

Not engaged in a Federally Related assignment.
Appraisal credential is disclosed.
Disclose and do not comply with USPAP. (do not mislead client)
Contract to provide a valuation service.

Q1: Are there any USPAP issues in doing this? Obligations to comply?
Q2: Outside USPAP, what ethical or other issues exist/are perceives?

Thanks in advance for the feedback!


My state (CA) says "The (OREA) Licensing Unit ensures that applicants for appraisal licenses meet minimum requirements for education, experience, and examination that comply with federal mandates, and ensure that only qualified persons are licensed to conduct appraisals in federally related real estate loan transactions."

USPAP 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."
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Old 09-26-2007, 09:54 PM
Couch Potato's Avatar
Couch Potato Couch Potato is offline
Join Date: Mar 2004
Location: Chapel Hill
State: North Carolina
Professional Status: Certified Residential Appraiser
Posts: 14,075

You will need CA appraisers for a good reply. I am always a USPAP appraiser under the laws for my licenses.
"Give a man a gun and he can rob a bank. Give a man a bank and he can rob the world."
Old 09-26-2007, 10:03 PM
David Wimpelberg's Avatar
David Wimpelberg David Wimpelberg is offline
Join Date: Mar 2005
Location: Hamptons, NY
State: New York
Professional Status: Certified General Appraiser
Posts: 15,833

Ditto Mr. Potato.

I personally would not put myself out as an licensed appraiser then complete work that did not conform to USPAP. IMHO, that does not promote the public trust.

Scenerio: Estimating Market Value for Insurance or Tax Purposes
With regard to these specific issues, just a couple of comments. You're probably looking for Insurable Value, not Market Value, for insurance purposes. I don't know what "Tax Purposes" refers to. You may be dealing with Federal Regulations in that case, and may have to meet whatever requirements apply, which may include a license.
Old 09-26-2007, 10:05 PM
Fred Fred is offline
Join Date: Jan 2002
State: Virgin Islands
Professional Status: Retired Appraiser
Posts: 11,390

When am I not a USPAP appraiser
The short answer is - whenever you are not an appraiser. That said, what's a "USPAP appraiser?"
Old 09-26-2007, 10:55 PM
Denis DeSaix Denis DeSaix is offline
Join Date: May 2005
Location: Northern California
State: California
Professional Status: Certified General Appraiser
Posts: 15,203

In California, as a licensed appraiser, you are subject to USPAP when it applies.
It applies if you are hired because you are an appraiser and the assignment is an appraisal service.

Read AO-21. Its not too ambiguous.

Your question makes me curious, however: Why, as an appraiser, would you want to complete a real property valuation outside of USPAP?

My question is sincere- I don't understand what that advantage would be?

Last edited by Denis DeSaix : 09-27-2007 at 10:45 AM. Reason: typo
Old 09-26-2007, 10:55 PM
Brian Weaver Brian Weaver is offline
Join Date: Apr 2005
Location: Chicago area
State: Illinois
Professional Status: Gvmt Agency, FNMA, HUD, VA etc.
Posts: 2,516

This is right out of the California Regs:
3542. Acceptable Categories of Experience and Criteria for Each Category
(a) Acceptable categories of experience to meet the minimum requirements of
Section 3541 and the criteria for each category are as follows:
(1) Fee and staff appraisal (a real property appraisal prepared by a person
who is employed by another, usually a lending institution or government
agency, or who is paid a fee for the appraisal assignments he or she
(A) Shall be a written document;
(B) Shall have used the entire appraisal process;
(C) Shall have used all appraisal methods (market, cost, income)
customarily used for a particular property type (i.e., residential,
commercial, industrial, etc.);
(D) Shall conform to USPAP, particularly Standards Rules 1 and 2;
(E) Analysis must be completed by the applicant.
(2) Ad valorem tax appraisal (a real estate appraisal prepared by an
appraiser which estimates a value that is used for property tax purposes):
Old 09-26-2007, 10:57 PM
Denis DeSaix Denis DeSaix is offline
Join Date: May 2005
Location: Northern California
State: California
Professional Status: Certified General Appraiser
Posts: 15,203


I don't think the question was regarding applicable experience; if it was, I misunderstood it.

I think the question is regarding, "Do I have to follow USPAP if I'm a licensed appraiser in California and giving a market value for non-FRT purposes?"

Of course James could tell me I"m wrong?
Old 09-27-2007, 10:41 AM
George Hatch's Avatar
George Hatch George Hatch is offline
Join Date: Jan 2002
Location: Carlsbad, California
State: California
Professional Status: Certified General Appraiser
Posts: 16,825

I think your question is a licensing question rather than a USPAP question.

USPAP is applicable whenever the individual is acting as an appraiser, regardless of what terminology of nomenclature they may be using to describe what they're doing. That's why we get so annoyed when RE brokers offer opinions of value for other than brokerage purposes without adhering to the requirements for developing and reporting opinions of value.

You're asking at what point the OREA won't hold you responsible for adhering to USPAP. The following section was lifted from the California Code of Regulations:

3701. Standards of Professional Appraisal Practice
Every holder of a license under this part shall conform to and observe the Uniform Standards of Professional Appraisal Practice (USPAP) and any subsequent amendments thereto as promulgated by the Appraisal Standards Board of The Appraisal Foundation, which standards are herein incorporated into these regulations by reference as if fully set forth herein.
But wait, once was not enough. They repeat the applicability to USPAP in the Business and Professions Code:

11319. Standards for conduct and performance; additional standards

Notwithstanding any other provision of this code, the Uniform Standards of
Professional Appraisal Practice constitute the minimum standard of conduct and performance for a licensee in any work or service performed that is addressed by those standards. If a licensee also is certified by the Board of Equalization, he or she shall follow the standards established by the Board of Equalization when fulfilling his or her responsibilities for assessment purposes.

Notice that neither of the above citations note any other limitations on their jurisdiction beyond whether the individual is a licensee and whether the work or service performed is addressed in USPAP.

If you're asking if the OREA doesn't have jurisdiction over you when you're not performing federally related transactions all I can suggest is that you think about it a little. The OREA responds to complaints about their licensees, and those complaints can come in from most anywhere and involve all sorts of assignments. Appraisals for right-of-way, litigation, estate, buyer/sellers, landlord/tenant, etc..

The greater question in my mind is if you are acting as a professional appraiser, what part of USPAP is so difficult or objectionable that you would consider avoiding adherence to it under any circumstances?


Last edited by George Hatch : 09-27-2007 at 10:43 AM.
Old 09-27-2007, 11:05 AM
Steve Yeager's Avatar
Steve Yeager Steve Yeager is offline
Join Date: Feb 2007
Location: New Port Richey, FL
State: Florida
Professional Status: Certified Residential Appraiser
Posts: 36

Wouldn't USPAP trump state?
Old 09-27-2007, 11:16 AM
Denis DeSaix Denis DeSaix is offline
Join Date: May 2005
Location: Northern California
State: California
Professional Status: Certified General Appraiser
Posts: 15,203

Originally Posted by Steve Yeager View Post
Wouldn't USPAP trump state?
Where's the conflict between the two?
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