Reporting Standards and Professional Realty Consulting Practice

Uniform Standards of Professional Realty Consulting Practice (USPRCP)

• The main focus of the USPRCP is to provide guidelines for professional realty consulting practice.

Ethics Provision

• The ETHICS PROVISION emphasizes the importance of ethical conduct in real estate consulting services.

Competency Provision

• The COMPETENCY PROVISION emphasizes the importance of consultants demonstrating competence in their services.

Departure Provision

• The DEPARTURE PROVISION applies when a consultant needs to depart from specific guidelines due to extraordinary circumstances.
• The burden of proof is on the consultant to demonstrate that departure from the guidelines is necessary and justified.

Intended Users

• Intended users of the report may include clients, investors, and other stakeholders.

Agreement to Perform Consulting Services

• A consultant can enter into an agreement to perform a consulting service that calls for something less than the work required by specific guidelines if the client agrees to the limited scope.

Jurisdictional Exception

• The JURISDICTIONAL EXCEPTION allows for exceptions to the guidelines due to jurisdictional constraints.

Report Requirements

• If there is a violation of USPRCP in a particular engagement, the report must identify and explain the violation.

Jurisdiction

• Jurisdiction relates to the geographical or legal boundaries that govern the consulting service.

Supplemental Standards

• The SUPPLEMENTAL STANDARDS section provides additional guidance for specific situations or industries.

Standard No.2

• A consultant must demonstrate competence, objectivity, and independence in their services.

Due Care

• The standard of due care requires consultants to exercise reasonable care and diligence in their services.

Technical Standards

• The technical standards indicate that conducting consulting practice requires a high level of expertise and knowledge.

Standard No.4

• A consultant must avoid any actions that could compromise their independence and objectivity.

Fee Structure

• A consultant must charge reasonable fees and disclose their fee structure to the client.

Independence and Objectivity

• A consultant must avoid any practices that could compromise their independence and objectivity, such as accepting contingent compensation.

Purpose of USPRCP

• The purpose of the USPRCP is to promote professional and ethical conduct in real estate consulting services.

Standard No.8

• A consulting report must comply with specific reporting guidelines and clearly disclose the assumptions and limitations of the report.

Reporting Guidelines

• Each written consulting report must comply with the specific reporting guidelines.

Certification

• A consultant must certify in their written consulting report that they have complied with the guidelines.

Assumed Conditions

• When developing consulting services based on assumed conditions, a consultant must ensure that the assumptions are reasonable and clearly disclosed.

Contingent Compensation

• Accepting contingent compensation for reporting predetermined results is considered unethical.

Lacking Knowledge or Experience

• If a consultant lacks the knowledge or experience to complete an engagement competently, they must take necessary steps to acquire the necessary expertise or decline the engagement.

Undisclosed Commissions

• Giving undisclosed commissions in exchange for consulting engagements is considered unethical.

Marketing Consultancy Services

• Misleading or deceptive marketing practices are considered unethical.

Confidentiality

• A consultant must maintain confidentiality regarding client data.

Written Report

• Before issuing a written report, a consultant must ensure that they have complied with the guidelines and that the report is accurate and complete.

Analysis and Research

• A consultant must develop an analysis and research program that is objective and unbiased.

Impartial Consulting Service

• An impartial consulting service is one that provides an unbiased and objective analysis, whereas a service intended to facilitate the achievement of the client's objective is not impartial.

Standard No.5

• A consultant must observe the specific guidelines for performing real estate consulting services, including identifying the client's objective and the scope of work.

Appraisal

• An appraisal plays a crucial role in real estate consulting services, providing an objective and unbiased analysis of the property.

Projections

• Consultants must base all projections on reasonable and supported assumptions.

Ethical Considerations

• Consultants must ensure that ethical considerations are taken into account when performing an appraisal or other real estate consulting services.

Identifying Objectives

• A consultant must identify the client's objective before beginning a service.

Standard No.6

• A consultant must identify alternative courses of action and consider the potential risks and consequences of each.

Departing from Binding Requirements

• A consultant must depart from binding requirements only when justified and with proper documentation.

Assessing Work

• A consultant must assess the overall range of work required to solve a problem before beginning the engagement.

Explore the requirements for expressing advice and adherence to professional consulting practice standards, focusing on Standard No.7 related to professional realty consulting practice. Understand the term 'uniform standards of professional realty consulting practice' as highlighted in reporting standards.