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TOOLS Updated January 2024
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2020-2021 USPAP Changes
Overview: What's changed with the 2024 USPAP Edition?
There are six key updates you should know from the adopted 2024 USPAP draft.
#1: Updated ETHICS RULE with new Non-Discrimination Section, new Advisory Opinions.
The newly adopted USPAP draft includes an extensive update to the ETHICS RULE, with the addition of a fourth prohibition section on Non-Discrimination. Additionally, two Advisory Opinions – Advisory Opinions 39 and 40 - were added to provide additional context for the ETHICS RULE update.
The ETHICS RULE now explicitly defines guidelines for non-discriminatory appraisal practice and uses verbiage more closely aligned with that of three key federal anti-discrimination laws, including:
Advisory Opinion 39 reiterates the guideline that all appraisers are required to understand all applicable anti-discrimination laws at the local, state, and federal levels. It also details how federal anti-discrimination laws are relevant to appraisal and provides additional guidance on the concept of disparate impact.
Advisory Opinion 40 provides appraisers details on the requirements of applicable anti-discrimination laws in the context of residential property appraisals. It also provides further guidance on violations related to using federally protected classes, demographics, and location data in appraisal reporting.
Both Advisory Opinions will replace Advisory Opinion 16.
You can read the ASB's full rationale for these changes and the new verbiage on pages 12-40 of the final USPAP draft.
#2: Transfers and sales.
The adopted USPAP draft also includes a clarification on the use of the terms "sales" and "transfers."
The ASB notes that, as questions have persisted on the difference between the two terms over the years, a further distinction was needed.
While a "sale" always includes the transfer of a property. The "transfer" of a property may not always include a sale.
So, the phrase "and other transfers" has been incorporated into the language of multiple USPAP standards.
See the full rationale and new verbiage on pages 42-43 of the final USPAP draft.
#3: Three retiring definitions.
To clarify and streamline terminology, the ASB will retire three definitions used in USPAP.
These terms are:
Assignment Elements See the full rationale and adopted changes on page 44 of the final USPAP draft.
#4: Three modified definitions.
The ASB will also modify three definitions to clarify and streamline terminology.
The modified definitions apply to these terms:
Appraiser See the full rationale and modified verbiage on pages 45-48 of the final USPAP draft.
#5: Other minor edits.
Four adopted minor edits to USPAP verbiage in various sections include:
Updating minor terms See the full rationale and list of edits on pages 49-53 of the final USPAP draft.
#6: Changes to Advisory Opinion 2.
Finally, the ASB will make changes to Advisory Opinion 2, Inspection of Subject Property.
The update will include the new modified definition of "personal inspection."
See the full rationale and updated verbiage on pages 54-61 of the final USPAP draft.
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