The 2020-21 USPAP publication will be available within the next several weeks, and so will the 2020-21 7-hour National USPAP Update Course. Not everyone purchases the USPAP publication or takes an update course right away, so here is a quick overview of the most important USPAP changes for 2020-21.
Many of the changes will not affect the way you do appraisals. For example, the ASB added labels to the Standards Rules. That’s useful, but it does not affect how you perform appraisal assignments.
What are the top three changes to USPAP for 2020-21?
Perhaps the most significant revision is that appraisers will now be able to provide Restricted Appraisal Reports in situations when there are intended users in addition to the client. You will be required to identify these additional intended users by name in the Restricted Appraisal Report—identification by type will not be permitted. This will open up the use of this report option for situations where it previously would not have been appropriate.
Another significant revision is the issue of supplemental certification. In situations where an assignment requires the use of a certification that does not have all of the required certification elements (e.g., the URAR and other forms), appraisers are required to include a supplemental certification which includes the remaining certification elements. However, the ASB clarified for 2020-21 that this supplemental certification does not require the signature of the appraiser(s).
The Comment in Standards Rule 1-1 that stated, “Perfection is impossible to attain, and competence does not require perfection” was removed from the development standards and inserted into the COMPETENCY RULE. While this may seem minor at first glance, it has far-reaching implications. This Comment now applies to both development and reporting, as well as other parts of appraisal practice that are not appraisal or appraisal review assignments.
Get up-to-speed on USPAP. Sign up for the 2020-21 7-hour National USPAP Update Course today.
Are there other changes worth noting?
Several new DEFINITIONS were added, including ASSIGNMENT ELEMENTS, EFFECTIVE DATE, MISLEADING, PERSONAL INSPECTION, PHYSICAL CHARACTERISTICS, and RELEVANT CHARACTERISTICS. While these definitions do not change the way appraisals are developed and reported, they can facilitate clearer communications between appraisers and their clients.
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. Advisory Opinions are not intended to be enforceable, so this doesn’t really qualify as a “change” to USPAP. However, this new AO is full of advice and guidance regarding the use of the report options (particularly the Restricted Appraisal Report), and it is good reading for appraisers.
Where can I find a summary of all USPAP changes?
Download your free copy of the Summary of 2020-2021 USPAP Changes—a cheat sheet summarizing all of the new revisions. Additionally, The Appraisal Foundation has produced an official “Summary of Actions” document that you can access here.
Where can I take the national USPAP update course?
McKissock offers the 2020-21 7-hour National USPAP Update Course in both online and classroom formats, so meeting your USPAP update course requirement has never been easier.
Is the USPAP course required?
Yes, the 7-hour USPAP Update Course is required. Every licensed or certified appraiser must complete the course every two years. If you’re an aspiring appraiser, you’ll need to take the 15-hour National USPAP Course as part of your required coursework to become a licensed appraisal trainee.
The new USPAP becomes effective on January 1, 2020, which will be here before you know it. Sign up for the 2020-21 7-hour National USPAP Update Course today. Plus, review (and print) our Summary of 2020-2021 USPAP Changes so you can get up-to-speed right away.