CAR Professional Standards & Ethics 2

Question 1

Under USPAP, which situation would constitute a conflict of interest that a reviewer MUST disclose?

Accepted Answer

Reviewing an appraisal of a property the reviewer owns

Answer

USPAP's Ethics Rule requires reviewers to disclose any current or prospective interest in the property that is the subject of the appraisal being reviewed.

Question 2

A review appraiser who completes an appraisal review without inspecting the subject property must:

Accepted Answer

Disclose this limitation in the review report

Answer

USPAP Standard 3 requires the reviewer to clearly disclose any limitations on the scope of work, including whether a property inspection was or was not performed.

Question 3

Which of the following best describes the 'impartiality' requirement for appraisal reviewers under USPAP's Ethics Rule?

Accepted Answer

The reviewer must perform work free from bias and without accommodation of personal interests

Answer

Impartiality under USPAP's Ethics Rule means the reviewer must be unbiased and not allow personal interests or outside pressure to influence the review conclusion.

Question 4

When a client pressures a review appraiser to 'find something wrong' with an appraisal to justify declining a loan, the reviewer should:

Accepted Answer

Decline the assignment if objectivity cannot be maintained

Answer

USPAP's Ethics Rule prohibits reviewers from performing assignments with a predetermined outcome; if client pressure compromises objectivity, the assignment must be declined.

Question 5

According to USPAP, which record-keeping requirement applies to appraisal review work files?

Accepted Answer

Work files must be retained for at least 5 years after preparation or 2 years after final disposition, whichever is longer

Answer

USPAP's Record Keeping Rule requires appraisal review work files to be retained for at least five years after preparation or at least two years after final disposition of any judicial proceeding, whichever is longer.

(CAR) Certified Appraisal Reviewer Practice Test

(CAR) Certified Appraisal Reviewer Practice Test

CAR Professional Standards & Ethics 2