IACP Legal & Ethical Standards in Appraisal 3

Question 1

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

Accepted Answer

Competency to complete the assignment or a plan to acquire it

Answer

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.

Question 2

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

Accepted Answer

The appraiser's personal financial statements

Answer

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

Question 3

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

Accepted Answer

Overvaluation fraud (air loan scheme)

Answer

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

Question 4

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

Accepted Answer

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

Answer

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

Question 5

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

Accepted Answer

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

Answer

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

(IACP) Independent Appraisers Certification Program Practice Test

(IACP) Independent Appraisers Certification Program Practice Test

IACP Legal & Ethical Standards in Appraisal 3