Professional Standards and Ethics Flashcards

Under the USPAP Ethics Rule, an appraiser must disclose prior services involving the subject property performed within what period before accepting an assignment?

Answer: Three years

USPAP requires disclosure of any services regarding the subject property performed within the three years prior to accepting the assignment.

In a ratio study under IAAO standards, the price-related differential (PRD) is generally considered acceptable within which range?

Answer: 0.98 to 1.03

The IAAO Standard on Ratio Studies recommends a PRD between 0.98 and 1.03 to indicate vertical equity.

Which ethical concern arises if an assessor systematically appraises high-value homes at a lower ratio than low-value homes?

Answer: Regressivity, which violates uniformity and fairness obligations

Assessing high-value property at lower ratios is regressive and shifts tax burden unfairly to lower-value owners.

An assessor raises values only on recently sold properties while leaving unsold comparable parcels unchanged. What is this practice called?

Answer: Sales chasing (selective reappraisal)

Sales chasing distorts ratio studies and violates uniformity, and IAAO standards treat it as an unacceptable practice.

The IAAO acceptable range for the overall level of assessment (median ratio) in a ratio study is:

Answer: 0.90 to 1.10

IAAO standards recommend that the median assessment ratio fall between 0.90 and 1.10.

What is the primary ethical purpose of maintaining an adequate workfile?

Answer: To support the appraiser's opinions and conclusions and demonstrate USPAP compliance

The workfile must contain data and analysis sufficient to support the opinions and show compliance with USPAP.

A mass appraisal report under USPAP Standard 6 must include which of the following?

Answer: A signed certification

Standard 6 requires a signed certification as part of a mass appraisal report.