As the vocation of property appraisal has developed during past decades from a business
occupation into a professional, certain concepts have emerged and become clear. The word
“property” is now given to physical things and also to the legal rights of ownership of tangible or
intangible entities. Appraising is now considered to encompass three classes of operations,
namely,

1. The estimation of the cost of producing or replacing physical property.
2. The forecasting of the monetary earning power of certain classes of property.
3. The valuation or determination of the worth of property.

Because of the specialized knowledge and abilities required of the appraiser which are not
possessed by the layman, there has now come to be established a fiduciary relationship between
him and those who rely upon his findings.

The American Society of Appraisers occupies a unique position among professional appraisal
societies in that it recognizes and is concerned with all classes of property: real, personal,
tangible, and intangible, including real estate, machinery and equipment, buildings and other
structures, furnishings, works of art, natural resources, public utilities, gems and jewelry,
investment securities, and so forth. It is also unique in that it recognizes the threefold character
of the appraisal function.

In recognizing the need for the highest professional competence among appraisers, the American
Society of Appraisers actively supports recognized institutions of higher learning in their
scholastic programs, which are designed to provide the necessary academic background to both
appraiser aspirants and to the qualified professionals who desire to update and broaden their
professional skills.

The necessity for a set of authoritative principles and a code of professional ethics, broad enough
to cover all classes of property as well as the complexities of the various appraisal procedures, is
a pressing one. Previous statements of principles have dealt almost exclusively with real estate.
Existing codes of ethics are, in large measure, couched in such general moralistic terms that they
are impractical for specific application.

Violation of any provision or rule of the Code should not give rise to a civil cause of action and
should not create any presumption or evidence that a legal duty has been breached nor should it
create any special relationship between the appraiser or any other person. This Code is
designed to provide guidance to appraisers and to provide a structure for regulating conduct of
members of the ASA through disciplinary actions. Violations of the Code are not designed or
intended to be the basis of any civil liability. (January 1990)

To meet the need for a comprehensive set of guideposts and for a specific code of ethics, the
Society has prepared and presents herewith The Principles of Appraisal Practice and Code of
Ethics of the American Society of Appraisers.

American Society of Appraisers
Authorized June 30, 1968
Revised December 1995