USPAP Ethics Rule
The USPAP rule establishing requirements for appraiser conduct, management, confidentiality, and record keeping. It prohibits bias, advocacy, and deceptive practices in all appraisal activities.
The Ethics Rule has four sections: Conduct (act with impartiality and objectivity, not as an advocate), Management (disclose fees, not accept contingent fees for value-related assignments), Confidentiality (protect client information except as required by law), and Record Keeping (maintain work files for at least five years). Violations of the Ethics Rule can result in state licensing board discipline, including license revocation, fines, and mandatory education. The rule also addresses fair housing compliance and prohibits discrimination in appraisal practice.
Related Terms
Uniform Standards of Professional Appraisal Practice (USPAP)
USPAPThe nationally recognized ethical and performance standards for the appraisal profession, established by The Appraisal Foundation.
Competency Rule
A USPAP rule requiring that an appraiser must have the knowledge and experience necessary to complete an assignment competently, or must take steps to acquire it before accepting the assignment..
Appraiser Independence
The legal requirement that appraisers must be free from improper influence, coercion, or pressure from parties with a financial interest in the transaction outcome.
Work File
The documentation an appraiser must maintain to support the analyses, opinions, and conclusions in the appraisal report.
More in Legal & Regulatory
View allFIRREA (Financial Institutions Reform, Recovery, and Enforcement Act)
FIRREAThe 1989 federal law that established the modern appraisal regulatory framework, requiring state licensing of appraisers and USPAP compliance for all federally related real estate transactions..
Dodd-Frank Act (Appraisal Provisions)
The 2010 federal financial reform law that included significant appraisal provisions: appraiser independence requirements, AMC registration, customary and reasonable fee mandates, and prohibition of BPOs for origination..
The Appraisal Foundation
The Congressionally authorized organization that sets appraisal standards (USPAP) and minimum appraiser qualification criteria.
De Minimis Threshold
The transaction value below which a federally related real estate transaction does not require an appraisal by a licensed or certified appraiser.