he Uniform Standards of Professional Appraisal
Practice (USPAP) and the Uniform Appraisal
Standards for Federal Land Acquisitions
(commonly referred to as UASFLA or the
Yellow Book) are similar in philosophy.
USPAP promotes and maintains a high level of public
trust in appraisal practice, and the Yellow Book promotes
fairness, uniformity and efficiency in the appraisal of real
property in federal acquisitions. However, there are distinct
differences. Under USPAP, all appraisal disciplines are
included to establish one set of standards for the entire
appraisal profession. Meanwhile, the Yellow Book addresses
only real property with the intended use of assisting
in the determination of the amount to be paid as just
compensation for the rights acquired. In cases of litigation,
the Yellow Book assists the court in determining market
value for the purpose of just compensation.
In certain Yellow Book appraisal
assignments, it is necessary to invoke
USPAP’s Jurisdictional Exception Rule.
This article will discuss those instances
that preclude an appraiser from complying
with a part of USPAP.
USPAP
According to the Appraisal Standards
Board, USPAP is the generally accepted
and recognized standards of appraisal
practice in the United States. Developed in
the 1980s by an affiliation of nine appraisal
organizations, USPAP establishes rules and
standards applicable to the development
and reporting of all appraisal and appraisal
review disciplines (i.e. real property, mass
appraisal, personal property and business
appraisal).
Title XI of the Financial Institutions
Reform, Recovery and Enforcement
Act of 1989 requires, as a minimum,
“that real estate appraisals be performed
in accordance with generally accepted
appraisal standards as evidenced by the
appraisal standards promulgated by
the Appraisal Standards Board of The
Appraisal Foundation” and that “appraisals
shall be subject to appropriate review for
compliance with the Uniform Standards
of Professional Appraisal Practice.” In
addition, state appraiser regulatory boards,
professional appraisal organizations, users
of appraisal services, as well as local, state
and federal agencies all require USPAP
compliance.
UASFLA
In 1971, the (Federal) Interagency Land
Acquisition Conference published the
first edition of the Uniform Appraisal
Standards for Federal Land Acquisitions.
According to the Interagency Land
Acquisition Conference, the Yellow Book
is the foremost authority on real estate
valuation in federal eminent domain,
and an indispensable resource for the
appraisal of property for all types of federal
acquisitions.
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