Legal & Ethical Standards in Appraisal Flashcards
7 cards from real FHA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Legal & Ethical Standards in Appraisal flashcards as text
Under USPAP's Confidentiality section, an appraiser may disclose assignment results without client consent to:
Answer: A state appraisal regulatory agency conducting an investigation
USPAP permits disclosure to state enforcement bodies and peer reviewers authorized by law without client consent.
An FHA appraiser discovers mid-assignment that the property was recently used as a methamphetamine lab. The most appropriate action is to:
Answer: Disclose the finding in the report and adjust value accordingly
The appraiser must disclose known adverse environmental conditions in the report; if remediation is unverified, value impact must be addressed.
The Dodd-Frank Act's appraiser independence requirements prohibit a lender from:
Answer: Conditioning payment on the appraiser hitting a specific value
Conditioning appraisal fees or future work on a predetermined value outcome violates appraiser independence regulations.
A trainee appraiser signs an FHA appraisal report. Which statement is correct?
Answer: This is prohibited because FHA requires a Certified Residential or Certified General appraiser to sign
FHA requires the appraiser to hold at minimum a Certified Residential credential; trainees are not eligible to sign FHA reports.
The ETHICS RULE in USPAP requires appraisers to avoid performing an assignment with which of the following?
Answer: A fee contingent on the appraised value reported
USPAP's Ethics Rule prohibits contingent fees tied to the value conclusion because they create a prohibited bias.
An appraiser receives a request to update an appraisal performed two years ago. Under USPAP, the appraiser must:
Answer: Treat it as a new assignment and comply with all current USPAP requirements
An update is a new assignment requiring full USPAP compliance, not merely a revision of the prior report.
Under HUD Handbook 4000.1, an FHA appraiser who observes defective paint on pre-1978 housing must:
Answer: Condition the appraisal on repair or professional lead-based paint test
FHA requires the appraiser to condition the report on repair of deteriorated paint in pre-1978 homes to address lead-based paint hazards.