Is the use of the JURISDICTIONAL EXCEPTION RULE appropriate in federally-regulated transactions?

The jurisdictional exception rule is a provision within the Uniform Standards of Professional Appraisal Practice (USPAP) that allows an appraiser to deviate from certain USPAP requirements when those requirements are contrary to law or public policy. However, in federally-regulated transactions, the use of this rule is not appropriate, as these transactions are subject to stricter federal standards that require compliance with all parts of USPAP.

In federally regulated transactions, it is essential for appraisals to adhere to the full scope of USPAP because these transactions are subject to oversight by regulatory bodies that ensure all appraisals meet high standards for fairness, accuracy, and integrity. Therefore, any use of the jurisdictional exception would undermine the consistency and reliability expected in federally regulated settings.

This clarification helps to emphasize the importance of following the complete guidelines set forth by USPAP in such controlled environments, ensuring that all aspects of the appraisal process are conducted in a uniform manner.