Appraisal Standards and Ethics Flashcards
7 cards from real CAA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Appraisal Standards and Ethics flashcards as text
An appraiser discovers after delivery that a comparable sale used was actually a salvage-title vehicle. What is the most appropriate action?
Answer: Notify the client and correct the analysis as appropriate, since a misleading report must not be allowed to stand
Appraisers must not communicate misleading results, and altering or destroying workfile records is a violation.
Under USPAP, an appraiser who performs an appraisal review of another appraiser's vehicle valuation is governed by:
Answer: Standard 3
Standard 3 governs appraisal review development and reporting across all property types.
A client asks the appraiser to omit damage history from the report because it will lower the value. The appraiser should:
Answer: Refuse, because excluding relevant information to influence value produces a misleading report
Appraisers must perform assignments with impartiality and must not knowingly omit relevant facts to mislead users.
Which of the following best describes 'intended use' in a vehicle appraisal assignment?
Answer: The client's purpose for the appraisal, such as settling an insurance claim
Intended use is the use(s) of the appraiser's reported results as identified by the appraiser based on communication with the client.
If an appraiser gives expert testimony on a vehicle valuation in a lawsuit that concludes four years after the report, how long must the workfile be retained?
Answer: Two years after final disposition of the judicial proceeding, if that is later than five years from preparation
Retention is five years from preparation or two years after final disposition of a proceeding with testimony, whichever is later.
An appraiser lists the vehicle owner as an intended user without the client's knowledge. Which statement is correct?
Answer: Intended users are identified by the appraiser based on communication with the client at the time of the assignment
Intended users are identified by the appraiser based on communication with the client, not added unilaterally.
Which situation would most clearly violate the Management section of the USPAP Ethics Rule?
Answer: Paying an undisclosed fee to a body shop for referring appraisal assignments
Fees, commissions, or things of value paid to procure an assignment must be disclosed in the certification and report.