Earlier this week, the Appraisal Standards Board released a new Question and Answer covering Yellow Book and Competency.
2024–07: Yellow Book & Competency
Question: My client has requested an appraisal assignment that would be used in connection with the acquisition of the property by a federal government agency. In addition to complying with USPAP, I believe the Uniform Appraisal Standards for Federal Land Acquisitions (UASFLA or “Yellow Book”) may have requirements I will need to follow. My client has not identified any requirements in addition to
USPAP I must follow. If I agree to perform the new assignment, am I required to comply with federal laws, regulations, and follow Yellow Book standards when the client does not specifically make that request?
Answer: USPAP requires an appraiser to have knowledge of and comply with all federal, state, or local laws and regulations that are applicable to the assignment as a matter of competency. This means the appraiser must identify assignment conditions. Assignment conditions are addressed in the Problem Identification section of the SCOPE OF WORK RULE. The RULE states in part: “Assignment conditions include assumptions, extraordinary assumptions, hypothetical conditions, laws and regulations, jurisdictional exceptions, and other conditions that affect the scope of work. Laws include constitutions, legislative and court–made law, administrative rules, and ordinances. Regulations include rules or orders, having legal force, issued by an administrative agency.” [Bold added for emphasis.] Assignments used in connection with federal acquisitions may be required to follow the Uniform Relocation Assistance and Real Property Acquisition Policies Act (1970), which is a federal law, and the Yellow Book, which identifies guidance and requirements created by certain federal and court made laws. If the appraiser identifies that certain federal, state, or local laws or the Yellow Book standards are applicable to the assignment or to the appraiser, the appraiser must follow those standards, whether identified by the client or not.
USPAP Q&As are posted on The Appraisal Foundation website. For further information regarding USPAP Q&A, please contact: Lisa Desmarais, Vice President, Appraisal Issues
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