The organizations further asked the agencies to review their regulations in light of recent changes to appraisal standards, such as the Scope of Work rule
that provides more client flexibility.
USPAP's Scope of Work Rule
states that an appraiser must "determine and perform the scope of work necessary to develop credible assignment results." Scope of work includes the type and extent of data researched, and the type and extent of analyses applied to arrive at opinions and conclusions.
Riach suggests that the Scope of Work Rule
has made the job of the reviewer both easier and more difficult: "easier because the appraiser has to lay out the scope of how he/she will solve the appraisal problem.
When the services include an appraisal or appraisal review, appraisers will continue to comply with the Scope of Work Rule
, the Record Keeping Rule and Standards 1-3 and 6-10 (as appropriate).
The 2006 USPAP incorporates certain prominent revisions, including a new Scope of Work Rule, which replaces the Departure Rule, and the deletion of terminology such as "binding" and "specific" requirements and "complete" and "limited" appraisals.
"In adopting the 2006 revisions, the Appraisal Standards Board has indicated that the appraisal process has not changed and that the concepts in the Scope of Work Rule are not new to USPAP However, there is greater emphasis on the appraiser's process of problem identification and development of an appropriate scope of work," the regulators wrote.
The Scope of Work Rule clearly sets forth the requirement to identify the problem to be solved.
USPAP's Scope of Work Rule clearly sets forth the requirement to identify the problem to be solved (Table 1).
The biggest changes are elimination of the DEPARTURE RULE and introduction of the SCOPE OF WORK RULE. The most visible change in appraisal practice is the discontinued use of the terms "Complete" and "Limited" to describe the appraisal process.
The SCOPE OF WORK RULE has no requirements that were not in USPAP before.
The Appraisal Foundation's new Scope of Work Rule
in the Uniform Standards of Professional Appraisal Practice that takes effect July 1, 2006, puts the focus squarely on the need for timely, precise communication in the development and reporting of value.
The ASB released its first exposure draft on July 15 of proposed revisions to USPAP in regard to the Scope of Work Rule
. Comments on the draft, available at www.appraisalfoundation.org/html/standards.asp?FileName=current_drafts, are due to the ASB by September 30.