According to USPAP guidelines, when must a review appraiser be licensed or certified in the state of the property being reviewed?

The correct answer emphasizes that the Uniform Standards of Professional Appraisal Practice (USPAP) provides a framework but allows individual states to set their own regulations regarding licensing and certification for review appraisers. This means that the requirement for a review appraiser to be licensed or certified in the state of the property being reviewed depends on the specific rules established by that state.

In situations where a review appraiser is conducting their appraisal work, they must adhere to both the USPAP standards and the state requirements. Thus, if a state has laws that require appraisers to hold a license or certification for the review of appraisals, then the review appraiser must comply. In contrast, if the state does not have such specific requirements, the appraiser may not be obligated to have that license or certification for the review process.

The complexity of appraisal practice and its regulation varies by state, leading to the conclusion that USPAP’s guidelines defer to state laws. This reflects the importance of both understanding the general standards set by USPAP and being aware of local regulatory requirements, which can impact appraisal practices directly.