Earlier this week, I completed a 7-hour update course on the Uniform Standards of the Professional Appraisal Practice (USPAP), which is required to maintain membership in the International Society of Appraisers (ISA).
Formally educated appraisers that are members of professional appraisal associations like ISA are also required to maintain USPAP compliance and keep current with changing rules through continuing education.
Compliance involves an initial two-day 15 hour class (including exam), and a 7-hour update class every two years. Whether or not you need an appraisal that will be reviewed by the IRS, full USPAP compliance along with affiliation with a professional appraisal association are the truest indications of an appraiser’s seriousness and professionalism. The ISA requires members to take this course every two years in order to stay current with changes in the standards which reflect current laws.
If these standards are new to you, here’s a basic overview of the rationale:
USPAP was established for appraisers who evaluate real estate to fine art, rare books, collectibles, intangibles, and business valuations in the United States and territories. The IRS requires appraisals written for their use to be USPAP-compliant for certain amounts.
It was developed with the express purpose of promoting and maintaining a high level of public trust and confidence in the professional appraisal practice. The development of uniform standards enhances the role of the appraiser in society and reinforces the appraiser’s obligations to act in a manner that promotes public trust and confidence.
The Uniform Standards of Professional Appraisal Practice (USPAP) reflect the multifaceted nature of the profession. USPAP changes are made in conjunction with changes to the appraisal profession, as well as the changing needs of potential clients. The changes are intended to improve the clarity, understanding, and enforcement of USPAP.