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 the IACP code of conduct, an appraiser who accepts an assignment must ensure they possess:

    Answer: Competency to complete the assignment or a plan to acquire it

    The Competency Rule requires appraisers to either have competency before accepting an assignment or to disclose the lack of it and acquire it during the assignment.

  2. Which element is NOT required to be in the workfile under USPAP's Record Keeping Rule?

    Answer: The appraiser's personal financial statements

    Personal financial statements are not required workfile contents; the workfile must contain documentation supporting the appraisal conclusion.

  3. Appraisal fraud that involves inflating a property's value to facilitate a mortgage for more than the property is worth is called:

    Answer: Overvaluation fraud (air loan scheme)

    Overvaluation fraud occurs when an appraiser inflates value to enable a borrower to obtain a larger loan than the property supports.

  4. An appraiser signs a certification in a report. This certification attests that:

    Answer: The statements of fact in the report are true to the appraiser's best knowledge

    The USPAP-required certification attests that statements of fact are true to the appraiser's knowledge and the analysis is unbiased.

  5. Which scenario represents 'scope creep' that could create ethical issues in an appraisal engagement?

    Answer: Expanding work to include a feasibility study not requested by the client and billing for it without disclosure

    Performing unrequested services and billing for them without client disclosure violates transparency and fee agreement obligations.

  6. Under state licensing law, an appraiser trainee may NOT:

    Answer: Sign appraisal reports as the appraiser of record

    Trainees are not licensed or certified and cannot sign as the appraiser of record; reports must be signed by the supervising certified appraiser.

  7. The 'intended user' in an appraisal assignment is defined as:

    Answer: The client and any other party the appraiser identifies as relying on the appraisal

    Intended users include the client plus any other parties identified by the appraiser as relying on the report for the intended use.