The following is a summary from the updated 2010-2011 USPAP Guide...

What is USPAP - click on the link for a very informative free download:

http://www.appraisalfoundation.org/s_appraisal/bin.asp?CID=68&DID=505&DOC=FILE.PDF

APPRAISER: One who is expected to perform valuation services competently and in a manner that is
independent, impartial, and objective.

APPRAISAL: (noun) the act or process of developing an opinion of value; an opinion of value.
(adjective) of or pertaining to appraising and related functions such as appraisal practice or
appraisal services.

ASSIGNMENT: 1) An agreement between an appraiser and a client to provide a valuation service; 2) the
valuation service that is provided as a consequence of such an agreement

CLIENT: the party or parties who engage an appraiser (by employment or contract) in a specific assignment.

CREDIBLE: worthy of belief.Comment: Credible assignment results require support, by relevant evidence and logic, to the
degree necessary for the intended use.

MARKET VALUE: a type of value, stated as an opinion, that presumes the transfer of a property (i.e., a right of ownership or a bundle of such rights), as of a certain date, under specific conditions set forth in the definition of the term identified by the appraiser as applicable in an appraisal.

Comment: Forming an opinion of market value is the purpose of many real property appraisal assignments, particularly when the client’s intended use includes more than one intended user.

The conditions included in market value definitions establish market perspectives for development of the opinion. These conditions may vary from definition to definition but generally fall into three categories:

1. the relationship, knowledge, and motivation of the parties (i.e., seller and buyer);

2. the terms of sale (e.g., cash, cash equivalent, or other terms); and
 
3. the conditions of sale (e.g., exposure in a competitive market for a reasonable time
prior to sale). Appraisers are cautioned to identify the exact definition of market value, and its authority,applicable in each appraisal completed for the purpose of market value.

PRICE: the amount asked, offered, or paid for a property.

Comment: Once stated, price is a fact, whether it is publicly disclosed or retained in private. Because of the financial capabilities, motivations, or special interests of a given buyer or seller, the price paid for a property may or may not have any relation to the value that might be ascribed to that property by others.

REAL ESTATE: an identified parcel or tract of land, including improvements, if any.

REAL PROPERTY: the interests, benefits, and rights inherent in the ownership of real estate.

Comment: In some jurisdictions, the terms real estate and real property have the same legal meaning.
The separate definitions recognize the traditional distinction between the two concepts in appraisal theory.

REPORT: any communication, written or oral, of an appraisal, appraisal review, or appraisal consulting service that is transmitted to the client upon completion of an assignment

Comment: Most reports are written and most clients mandate written reports. Oral report requirements (see the Record Keeping section of the ETHICS RULE) are included to cover court testimony and other oral communications of an appraisal, appraisal review, or appraisal consulting service.

SCOPE OF WORK: the type and extent of research and analyses in an assignment.

VALUATION SERVICES: services pertaining to aspects of property value.

Comment: Valuation services pertain to all aspects of property value and include services performed both by appraisers and by others.

VALUE: the monetary relationship between properties and those who buy, sell, or use those properties.

Comment: Value expresses an economic concept. As such, it is never a fact but always an opinion of the worth of a property at a given time in accordance with a specific definition of value. In appraisal practice, value must always be qualified - for example, market value, liquidation value, or investment value.

Professional Conduct:

An appraiser must perform assignments with impartiality, objectivity, and independence, and without accommodation of personal interests. An appraiser:must not perform an assignment with bias; must not advocate the cause or interest of any party or issue;must not accept an assignment that includes the reporting of predetermined opinions and conclusions;must not misrepresent his or her role when providing valuation services that are outside of appraisal practice;must not communicate assignment results with the intent to mislead or to defraud; must not use or communicate a report that is known by the appraiser to be misleading or fraudulent; must not knowingly permit an employee or other person to communicate a misleading or fraudulent report; must not use or rely on unsupported conclusions relating to characteristics such as race, color, religion, national origin, gender, marital status, familial status, age, receipt of public
assistance income, handicap, or an unsupported conclusion that homogeneity of such characteristics is necessary to maximize value; must not engage in criminal conduct; and must not perform an assignment in a grossly negligent manner.

Comment: Development standards (1-1, 3-1, 4-1, 6-1, 7-1 and 9-1) address the requirement that “an appraiser must not render appraisal services in a careless or negligent manner.” The above
requirement deals with an appraiser being grossly negligent in performing an assignment which would be a violation of the Conduct section of the ETHICS RULE.

USPAP PREAMBLE

The purpose of the Uniform Standards of Professional Appraisal Practice (USPAP) is to promote and maintain a high level of public trust in appraisal practice by establishing requirements for appraisers. It is essential that appraisers develop and communicate their analyses, opinions, and conclusions to intended users of their services in a manner that is meaningful and not misleading.

The Appraisal Standards Board promulgates USPAP for both appraisers and users of appraisal services. The appraiser’s responsibility is to protect the overall public trust and it is the importance of the role of the appraiser that places ethical obligations on those who serve in this capacity. USPAP reflects the current standards of the appraisal profession.

USPAP does not establish who or which assignments must comply. Neither The Appraisal Foundation nor its Appraisal Standards Board is a government entity with the power to make, judge, or enforce law. Compliance with USPAP is required when either the service or the appraiser is obligated to comply by law or regulation, or by agreement with the client or intended users. When not obligated, individuals may still choose to comply.

USPAP addresses the ethical and performance obligations of appraisers through DEFINITIONS, Rules, Standards, Standards Rules, and Statements.