Regulatory & Fair Housing Compliance Flashcards
7 cards from real CGA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Regulatory & Fair Housing Compliance flashcards as text
The Competency Rule in USPAP requires an appraiser to do which of the following before accepting an assignment they lack competency for?
Answer: Disclose the lack of competency to the client and take steps to acquire competency
The Competency Rule requires disclosure of any lack of knowledge or experience and requires steps to acquire competency prior to completing the assignment.
Under the Americans with Disabilities Act (ADA), how should an appraiser treat ADA compliance costs for a commercial property that is non-compliant?
Answer: Reflect ADA compliance costs as a negative adjustment to market value
ADA non-compliance represents a form of functional obsolescence, and the cost to cure or market penalty should be reflected in the value estimate.
The concept of 'redlining' as prohibited by fair housing law refers to:
Answer: Denying services to residents of certain areas based on racial or ethnic composition
Redlining is the illegal practice of denying mortgage loans or insurance to residents of neighborhoods based on racial or ethnic composition.
USPAP Standard 1 governs which type of appraisal practice?
Answer: Real property appraisal development
USPAP Standard 1 establishes requirements for the development of real property appraisals.
When an appraiser accepts an assignment to appraise a property in which they have a personal financial interest, USPAP requires them to:
Answer: Disclose the interest to the client and obtain client consent
USPAP's Ethics Rule permits appraisal of properties in which the appraiser has an interest, but only with full disclosure to and consent of the client.
Under fair housing law, which of the following protected classes was added to the original 1968 Fair Housing Act by the 1988 Fair Housing Amendments Act?
Answer: Familial status and disability
The 1988 Fair Housing Amendments Act added familial status and disability (handicap) to the original seven protected classes.
What is the primary purpose of the Uniform Standards of Professional Appraisal Practice (USPAP)?
Answer: To establish ethical and performance standards for appraisers
USPAP establishes ethical obligations and minimum appraisal performance standards to protect the public trust in appraisal practice.