Appraisal regulation and USPAP

Appraisal regulation and standards

Florida regulates appraisers under Part II of Chapter 475. The Florida Real Estate Appraisal Board handles appraisal regulation, distinct from the Florida Real Estate Commission's brokerage role. A sales associate license does not itself confer an appraiser credential.

Federal appraisal law protects federal financial and public policy interests through written appraisals, uniform standards, demonstrated competency, and effective supervision. For a federally related transaction, a licensed or certified appraiser independently and impartially prepares a written opinion of defined value of adequately described property as of a specific date, supported by relevant market information. Florida's general definition of an appraisal report includes oral communications, but recognition in a federally related transaction requires a written report.

The Uniform Standards of Professional Appraisal Practice, or USPAP, are approved and adopted by the Appraisal Standards Board of The Appraisal Foundation. Standards address ethical conduct and credible appraisal development and communication. A credential addresses state authorization; neither replaces the other. Appraisers must remain impartial, protect confidential assignment information, and have or acquire assignment-specific competency. Scope of work means the research and analysis needed for credible results. An appraisal is not a guarantee of a sale price or a property inspection warranty.

Florida supervision and independence

Florida defines a certified general appraiser as qualified to issue reports for any type of real property; assignment-specific competency still matters. A registered trainee works under a certified appraiser's direct supervision and accepts assignments only from a primary or secondary supervisory appraiser. The supervisor is fully responsible for the trainee's appraisals and reports. Appraisal review evaluates another appraiser's work and may or may not include a new value opinion.

An appraisal management company coordinates services. Florida discipline provisions prohibit conditioning employment or payment on predetermined results, threatening future business to influence an opinion, and changing completed appraisal reports. Providing a purchase contract is permitted; demanding a target value is different.

Keep the documentation

Florida appraisers retain work files and appraisal management companies retain order files for five years or the USPAP period, whichever is greater. Ordinarily, retention runs from submission of the report to the client. Litigation also requires retention for at least two years after trial or the USPAP period, whichever is greater. Satisfy both ordinary and litigation retention requirements before disposing of records.