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Presentations of Uniform Act Final Rule Implementation

Working to Maintain Consistency

Notes:

In March of 1992, the Federal Office of Management and Budget issued OMB Bulletin 92-06 which, in Attachment A, instructed all Federal agencies to, "…prepare real estate appraisal and appraiser review reports in accordance with written and approved agency standards consistent with the Uniform Appraisal Standards of Professional Appraisal Practice (USPAP) sections I - II …"

Note the use of the word "consistent" in the OMB Bulletin: Government-wide regulations already in place, that is 49 CFR 24.103 and 104, already met the test.

So just what does "consistent" mean? It in fact recognizes there may be operational differences, but that both USPAP and Uniform Act rules meet the Webster's definition of consistent, which is "showing steady conformity to character, profession, belief or custom." The fundamentals of appraisal are clearly embraced by both.

There are, however, operational differences. Perhaps the clearest is expressed by the Uniform Act requirement to disregard the influence of the project on value.

While the URA requirements and USPAP Standards are consistent, neither can supplant the other. Each provision is neither identical or interchangeable. Appraisals performed for Federal or federally-assisted real property acquisition must follow the URA requirements. An appraiser encountering conflicting requirements between URA and USPAP, may be able to work within USPAP standards via the USPAP's Jurisdictional Exception Rule1, where applicable. The Jurisdictional Exception Rule states if any part of the USPAP Standards is contrary to the law or public policy of any jurisdiction, only that part shall be void and of no force or effect in that jurisdiction.

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1 For a complete description of Jurisdictional Exception Rule refer to 2005 Edition USPAP Jurisdictional Exception Rule.

Updated: 09/05/2014
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