Licensing and Certification
Since 1991 the United State has had a program of state licensing or certification of real estate appraisers. This program also provides for the establishment of national appraisal standards.
Appraisers may be held liable for negligence, misrepresentation, fraud, breach of contract, or lack of compliance with the standards imposed by government agencies, The Appraisal Foundation, and the Appraisal Institute.
Federal and state appraisal regulatory boards require that Licensed or Certified appraisers adhere to the Uniform Standards of Professional Appraisal Practice (USPAP) Ethics and Standards when completing an appraisal assignment or real estate consulting service.
Standards Rules 1 & 2 must be adhered to when completing appraisal assignments.
Standards Rule 1 states: In developing a real property appraisal, an appraiser must identify the problem to be solved and the scope of the work necessary to solve the problem, and correctly complete research and analysis to produce a credible appraisal.
Standards rule 2 states: In reporting the results of a real property appraisal, an appraiser must communicate each analysis, opinion, and conclusion in a manner that is not misleading.
Standards Rules 4 & 5 must be followed when completing a real estate consulting service.
Professional standards require that the appraiser make a total effort on every appraisal assignment, regardless of the form of the report. The appraisal framework and the analysis involved are the same whatever form the report takes. The conditions and assumptions should always be spelled out carefully, as should the value to be estimated and the valuation date.