USPAP's COMPETENCY RULE states that an appraiser must:
- be competent to perform the assignment;
- acquire the necessary competency to perform the assignment; or
- decline or withdraw from the assignment.
If the appraiser determines that he or she is not competent prior to accepting an assignment, the appraiser must:
- disclose the lack of knowledge or experience to the client before accepting the assignment (or at that point in the appraisal process at which the deficiency is discovered);
- take all steps necessary or appropriate to complete the assignment competently (such as through expanded personal study/research or consulting with an expert); and
- describe in the report the lack of knowledge and/or experience and the steps taken to complete the assignment competently.
The fact that competency can apply to many factors within an assignment is addressed in the COMPETENCY RULE’s Comment to the “Being Competent” section which states:
“Competency may apply to factors such as, but not limited to, an appraiser’s familiarity with a specific type of property or asset, a market, a geographic area, an intended use, specific laws and regulations, or an analytical method. If such a factor is necessary for an appraiser to develop credible assignment results, the appraiser is responsible for having the competency…”
The SCOPE OF WORK RULE states that for each appraisal an appraiser must:
- identify the problem to be solved;
- determine and perform the scope of work necessary to develop credible assignment results; and
- disclose the scope of work in the report.