CAR Professional Standards & Ethics 3

Question 1

Under the Uniform Standards of Professional Appraisal Practice (USPAP), a 'desk review' is best characterized as:

Accepted Answer

A review performed without physically inspecting the subject property or comparable sales

Answer

A desk review is conducted entirely from the reviewer's office without any property inspection, relying solely on the information contained in the report and available data.

Question 2

When a CAR review appraiser signs a certification in an appraisal review report, they are certifying that:

Accepted Answer

The reviewer's opinions and conclusions are their own and free from bias

Answer

The USPAP certification in a review report confirms that the reviewer's opinions are their own, unbiased, made in good faith, and comply with USPAP requirements.

Question 3

A reviewer who simultaneously works as a loan officer for the same bank that ordered the appraisal review faces which primary ethical concern?

Accepted Answer

Conflict of interest

Answer

Holding dual roles where the reviewer's financial interest in the loan outcome could influence the review conclusion creates a direct conflict of interest under USPAP's Ethics Rule.

Question 4

Which of the following actions by a review appraiser would violate the Confidentiality section of USPAP's Ethics Rule?

Accepted Answer

Sharing the reviewed appraisal report with a competing lender without client authorization

Answer

USPAP prohibits reviewers from disclosing confidential information or assignment results to third parties not authorized by the client or permitted by law.

Question 5

Under AI's Code of Professional Ethics, what obligation does a review appraiser have if they discover the original appraisal contains intentional misrepresentation?

Accepted Answer

Report the finding through appropriate channels and document it in the review

Answer

Professional ethics codes require reviewers to document findings of intentional misrepresentation and report through appropriate channels such as state licensing boards or professional associations.

(CAR) Certified Appraisal Reviewer Practice Test

(CAR) Certified Appraisal Reviewer Practice Test

CAR Professional Standards & Ethics 3