| This
page contains introductory material about the Uniform Standards of Professional
Appraisal Practice (USPAP) from the Appraisal Foundation web site. All of the links
to USPAP that are shown below will take you to the Appraisal Foundation web site and to
specific sections of USPAP. Under current Federal and State laws every licensed or
certified real property appraiser in the United States must attend a 15-hour USPAP course
and pass an examination prior to becoming licensed or certified and must take a 15-hour
refresher USPAP course and examination every five years in order to continue to meet the
licensing or certifying requirements. Because mineral and mining rights are an integral
part of real estate and real property in the United States it is important that your
minerals appraiser to be familiar with and have a good understanding of these standards. The Appraisal Standards Board (ASB) of The Appraisal
Foundation develops,
publishes, interprets and amends the Uniform Standards of Professional Appraisal
Practice (USPAP) on behalf of appraisers and users of appraisal services. Since
USPAP will be used by state and federal regulatory agencies and others, the ASB
has adopted a publication policy to ensure that everyone is informed of
interpretations of or amendments to USPAP in a regular and timely manner. This
1998 Edition is the seventh annual publication of USPAP.
The ASB publishes USPAP in a bound annual
edition that includes a history of any
changes during the prior year. The Uniform Standards of Professional Appraisal
Practice in this 1998 Edition is contained in three sections:
INTRODUCTION
STANDARDS AND STANDARDS RULES
STATEMENTS ON APPRAISAL STANDARDS
In addition, for convenience of
reference, this bound volume also contains
Advisory Opinions and a Glossary approved by the ASB, and an Index. These
reference materials are a form of “Other Communications” provided by the ASB for
guidance only and are not an integral part of USPAP. It is important that individuals
understand and adhere to changes in each annual edition of USPAP. Each annual edition
becomes effective January 1 of the indicated year. State and Federal regulatory
authorities enforce the content of the current edition of USPAP.
Origin and History of USPAP
These standards are based on the original Uniform Standards of Professional
Appraisal Practice developed in 1986-87 by the Ad Hoc Committee on Uniform
Standards and copyrighted in 1987 by The Appraisal Foundation. Prior to the
establishment of the ASB in 1989, USPAP had been adopted by major appraisal
organizations in North America and became recognized as the generally accepted
standards of appraisal practice. All of the professional appraisal organizations that
Michael R. Cartwright is a member of subscribe to and fully support the use of USPAP.
At its organizational meeting on January
30, 1989, the ASB unanimously approved
and adopted the original USPAP as the initial appraisal standards promulgated by
the ASB. USPAP may be altered, amended, interpreted, supplemented, or repealed
by the ASB after exposure to the appraisal profession, users of appraisal
services and the public in accordance with established rules of procedure. The Effective
Date of the Original Uniform Standards was April 27, 1987.
Statements on Appraisal Standards
Statements on Appraisal Standards are authorized by the by-laws of The Appraisal
Foundation and are specifically for the purpose of clarification, interpretation,
explanation or elaboration of USPAP. Statements have the full weight of a Standards Rule
and can only be adopted by the ASB after exposure and comment. To date the ASB has adopted
nine Statements.
Advisory Opinions
In addition to Statements on Appraisal Standards, the ASB also issues Advisory
Opinions. This type of communication by the ASB does not establish new standards or
interpret existing standards. Advisory Opinions do not constitute legal
opinions of the ASB. Advisory Opinions are issued to illustrate the applicability of
appraisal standards in specific situations and to offer advice from the ASB for the
resolution of appraisal issues and problems. To date the ASB has approved 18 Advisory
Opinions for general distribution.
The 1992, 1993, 1994 and 1995 Editions of USPAP included a mid-year supplement. In order
to clarify public understanding of the effective dates of USPAP
revisions, Statements and Advisory Opinions, in 1995 the ASB elected to
discontinue the mid-year supplement for the 1996 Edition and all subsequent
editions. The Appraisal Standards Board develops and amends appraisal standards through
communications with appraisers and users of appraisal services. If you have any comments,
questions, or suggestions regarding USPAP, please contact the ASB.
Appraisal Standards Board
The Appraisal Foundation
1029 Vermont Avenue, NW
Suite 900
Washington, DC 20005-3517
Phone: (202) 347-7722
FAX: (202) 347-7727
Note: Clicking on the
The Appraisal Foundation or any of the individual USPAP sections will take you to the
Appraisal Foundation's web site. To return to the Mineral Business Appraisal web site use
the "Back" button on your browser.
The
Appraisal Foundation
STANDARDS AND STANDARDS RULES
STATEMENTS ON APPRAISAL STANDARDS
SMT-1 Standards Rule
3-1(f) (Review Appraisal)
SMT-2 Discounted Cash Flow
Analysis
SMT-3 Retrospective Value
Estimates
SMT-4 Prospective Value
Estimates
SMT-5 Confidentiality Rule of
the Ethics Provision
SMT-6 Reasonable Exposure
Time in Market Value Estimates
SMT-7 Permitted Departure
from Specific Guidelines for Real Property Appraisals
SMT-8 Electronic Transmission
of Reports
SMT-9 Identification of the
Client's "Intended Use" in Developing and Reporting Appraisal, Consulting or
Review Assignment Opinions and Conclusion
ADVISORY OPINIONS
AO-1 Sales History
AO-2 Inspection of Subject
Property Real Estate
AO-3 Update of an Appraisal
AO-4 Standards Rule 1-5(b)
AO-5 Assistance in the
Preparation of an Appraisal
AO-6 The Review Appraisal
Function
AO-7 Marketing Time Estimates
AO-8 Market Value vs. Fair
Value in Real Property Appraisals
AO-9 Responsibility of
Appraisers Concerning Toxic or Hazardous Substance Contamination
AO-10 The Appraiser-Client
Relationship
AO-11 Content of the
Appraisal Report Options of Standard 2
AO-12 Use of the Appraisal
Report Options of Standard 2
AO-13 Performing Evaluations
of Real Property Collateral to Conform with USPAP
AO-14 Appraisals for
Subsidized Housing
AO-15 Using the DEPARTURE
PROVISION in Developing a Limited Appraisal
AO-16 Fair Housing Laws and
Appraisal Report Content
AO-17 Appraisals of Real
Property with Proposed Improvements
AO-18 Use of an Automated
Valuation Model (AVM)
ADDENDA REFERENCE MATERIAL (for
guidance only)
GLOSSARY
INDEX
Discuss your mineral
property appraisal, mining business valuation, or other mineral industry
related concerns with Mineral Business Appraisal:
Michael R. Cartwright michael@minval.com
Five Claret Court, Reno, NV 89512-4744
Tel/Fax: 775-322-9028
Return to Mineral Business
Appraisal Home page
Back to Mineral Valuation Under FIRREA & USPAP
or Client Mineral Valuation
Education Information
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