Practice Test Geeks(IACP) Independent Appraisers Certification Program Practice Test
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Legal & Ethical Standards in Appraisal Flashcards

7 cards from real IACP 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

  1. Under USPAP's Ethics Rule, which action constitutes a conflict of interest that must be disclosed?

    Answer: Having a financial interest in a property adjacent to the subject being appraised

    A financial interest in nearby or related properties creates a conflict of interest that must be disclosed under USPAP's Ethics Rule.

  2. When an appraiser accepts an assignment with a predetermined value conclusion, this violates which USPAP rule?

    Answer: Ethics Rule — Independence

    Accepting assignments contingent on a specific outcome violates the Independence section of USPAP's Ethics Rule.

  3. An appraiser is asked to update an appraisal report originally completed two years ago. What is the primary ethical concern?

    Answer: Market conditions may have changed, requiring a new analysis rather than a simple update

    Significant market changes over two years may make a simple update misleading; the appraiser must ensure the report reflects current conditions.

  4. Which of the following best describes 'intended use' as required by USPAP?

    Answer: The purpose for which the client will use the appraisal report

    Intended use refers to how the client or intended users will employ the appraisal, and it shapes the scope of work and report content.

  5. An appraiser discovers after completing a report that a comparable sale was fraudulent. The ethical obligation is to:

    Answer: Notify the client and correct the report if the fraudulent sale materially affected the conclusion

    USPAP's Ethics Rule requires appraisers to correct reports containing significant errors, including those based on fraudulent data.

  6. State appraiser licensing boards have authority to do all of the following EXCEPT:

    Answer: Amend USPAP standards without ASB approval

    Only the Appraisal Standards Board (ASB) has authority to amend USPAP; state boards enforce compliance but cannot change the standards.

  7. A federally related transaction appraisal must be performed by a:

    Answer: Licensed or certified appraiser, depending on transaction complexity and amount

    FIRREA requires that federally related transactions use licensed or certified appraisers based on thresholds and property type requirements.