USPAP, What Realtors & Brokers Must Know

The Uniform Standards of Professional Appraisal Practice (USPAP) governs the appraisal industry and requires  appraisers to follow it's rules.  Enforcement in Florida is promulgated through the DBPR, the Department of Business and Professional Regulation.

Since transactions of real estate usually involve an appraisal, Realtors, Brokers and property owners should have some knowledge of USPAP when dealing with appraisers.

Real Estate Appraisers in Florida are licensed as either a "State Certified Residential Real Estate Appraiser" or as a "State Certified General Real Estate Appraiser".

Those with a "Residential" license are restricted to the appraisal of residential property (up to four units) with no dollar value limit.  See Florida Statutes FS 475, Part II.

The "General" license has no limitations and allows the appraisal of both residential and commercial properties.  

"Client" has a specific meaning to appraisers as defind by USPAP.  Brokers and Realtors should keep this in mind when contacting an appraiser for a bid quote.  The Broker or Realtor should clarify if they will be the "Client" or if the property owner will be the "Client".'  Per USPAP, the person who pays for the appraisal is not necessarily the client.

Confidentiality" to the client. Appraisers can not disclose any information about the appraisal to anyone but the "client". 

Bid Quotes: in a bid quote request, appraisers are required to determine the "Purpose" of the appraisal prior to quoting an appraisal fee since the purpose dictates the "Scope-of-Work" which dictates the time required to complete the assignment.

"Appraisal Practice" is defined as "valuation services performed by an individual acting as an appraiser, including but not limited to appraisal and appraisal review".

What this means: Under "Appraisal Practice" appraisers are allowed to perform a wide range of services from determining a property's Highest & Best Use to a hypothetical estimate-of-value as if a property has been re-zoned.

The website for Central Florida Appraisal Consultants (CFAC) is https://www.cfappraisal.com/












 





 

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