RICS has recently published Practical considerations for RICS valuers operating in the USA.
This practice information offers an overview of the measures that chartered valuation surveyors relocating to the US from other parts of the world need to take to provide real-estate valuations there.
As the author of the document, I collaborated with a working group comprising US-based members with expertise of national and global valuation standards to summarise the practical considerations and differences that RICS members should be aware of when undertaking work there.
Real-estate valuations in the US are governed by individual states, who license those carrying out these valuations.
The practice information outlines the measures valuers must take to obtain such a licence and become certified, and also sets out the education and experience requirements for the four different licence categories: trainee appraiser, licensed residential appraiser, certified residential appraiser and certified general appraiser.
In the US, both licensed and certified appraisers can conduct real estate appraisals, but there are key differences between the two.
Members should remember they still need to operate in accordance with RICS Valuation – Global Standards (Red Book Global Standards) when working outside their country of origin.
However, there are additional practical and reporting requirements when operating in the US. These ensure compliance with the Uniform Standards of Professional Appraisal Practice (USPAP), which is, for instance, required for state-licensed and state-certified appraisers involved in federally related real-estate transactions.
USPAP are the recognised ethical and performance standards for appraisers in the US, the equivalent of the valuation profession in the UK, and are implemented and overseen by the Appraisal Foundation.
They aim to promote and maintain public trust in appraisal practice by establishing requirements for the profession and contain standards for all types of service, including real estate, personal property, business and mass appraisal.
Practical considerations for RICS valuers operating in the USA therefore provides a high-level comparison of some of the differences between USPAP and Red Book Global Standards.
As well as detailing the mandatory requirements when providing valuations in the US, the document also provides practical information on other issues RICS members working in the country can encounter, such as the conditions for obtaining professional indemnity insurance.
Ultimately, because both standards share the same core valuation principles, valuers already accustomed to providing Red Book Global Standards-compliant appraisals should have no difficulty conforming with the requirements of USPAP.
10 July | 08:30 - 17:00 BST | 5.5 hours formal CPD | Cavendish Conference Centre, London
Join us for essential information on the innovations and strategies reshaping the residential property sector. Gain first-hand knowledge of upcoming legislation, regulatory developments and government priorities for tackling the sector's most pressing challenges.
Register today to secure your place
BUILT ENVIRONMENT JOURNAL
Emma Humphreys and Richard Flenley 25 June 2024
PROPERTY JOURNAL
Charlie Jackson FRICS 24 June 2024
BUILT ENVIRONMENT JOURNAL
Judith Schulz, Lorna Johnson, Graeme Flint and Andrew Lawrence 18 June 2024