Competency & Scope of Work
~11 min read · Use the Competency Rule’s acquire-or-decline logic and defend a scope-of-work decision.
Two rules decide whether you may take a job and how much work it requires: the Competency Rule's acquire-or-decline logic, and the Scope of Work Rule's acceptability tests. Both center on one output — credible assignment results for the intended use.
The Competency Rule
Before accepting, the appraiser must determine competency for the assignment — property type, market, geography, analytical methods, laws. Lacking it, the appraiser may still proceed by: (1) disclosing the lack of competency to the client BEFORE accepting, (2) taking all steps necessary to complete competently (study, association with a competent appraiser, market education), and (3) describing the deficiency and the steps taken in the report. Discovering incompetency mid-assignment triggers the same disclose-and-cure path. If competency cannot be achieved, decline or withdraw.
- Assess before accepting: type, market, methods, law
- Cure path: disclose first, acquire competency, describe in the report
- Cannot cure → decline or withdraw
The Scope of Work Rule
Scope of work — the extent of research and analysis (inspection depth, data gathered, approaches applied) — is the appraiser's decision, made per assignment. It must satisfy two benchmarks: what appraisers' peers would do in a similar assignment, and what intended users expect for the intended use. The report must disclose the scope. Clients may request limited scopes; the appraiser may accept ONLY if results remain credible — an assignment condition that precludes credible results must be refused.
- Appraiser decides; problem identification drives it
- Benchmarks: peers' actions + users' expectations
- Disclose the scope; refuse conditions that kill credibility
The Jurisdictional Exception Rule
When law or regulation precludes compliance with a part of USPAP, that part alone is void for the assignment — the appraiser complies with the law, identifies the affected USPAP portion, and cites the overriding authority in the report. The rest of USPAP stays fully in force. It is a scalpel, not an escape hatch — client preferences and lender guidelines are never 'law.'
Worked example
A residential appraiser in Denver is asked to appraise a working vineyard in a valley she's never worked, with the client adding: 'skip the income approach — we just want it fast — and our internal policy says ignore USPAP's three-year sale-history analysis.' May she take it, and on what terms?
Competency: vineyards are specialized agricultural properties in an unfamiliar market — she may accept ONLY by the cure path: disclose her inexperience to the client before acceptance, then acquire competency (associate with an agricultural appraiser, study the market), and describe both in the report. Scope: for an income-producing vineyard, peers and users would expect the income approach — omitting it likely guts credibility, so the 'skip it' condition must be refused (a limited scope is acceptable only while results stay credible). The 'internal policy' on sale history: client policy is not law — the Jurisdictional Exception Rule applies only to legal requirements; USPAP's analysis stands. Acceptance is possible; the client's shortcuts are not.
Common exam pitfalls
Disclosing incompetency after delivery.
Disclosure comes BEFORE acceptance, the cure during, and the description in the report — sequence is the rule.
Letting the client set the scope.
Clients may request; the appraiser decides — and refuses conditions that preclude credible results.
Stretching jurisdictional exception over guidelines.
Only LAW overrides USPAP, and only the conflicting portion — policies and preferences never qualify.
Know it or grow it — disclosed, cured, described; and the scope answers to peers and users, not to hurry.
Recap
- Competency judged pre-acceptance: property, market, methods, law
- Cure: prior disclosure + necessary steps + report description
- Scope of work: appraiser's call, benchmarked to peers and users
- Refuse assignment conditions that destroy credibility
- Disclose the scope in the report
- Jurisdictional exception: law only, surgical, cited
Prove it: 10 questions on this topic
Every lesson ends with a ten-question check in the free course — your progress syncs between the web and the EstatePass app.
Studying for the appraiser licensing exam? Track every lesson free — progress syncs with the app.
Start freeMore in USPAP & Standards
Study smarter in the free dashboard
- Every lesson tracked, synced with the iOS app
- Ten-question checks after each lesson
- Lesson videos, flashcards and mock exams
No credit card required.