IACP Legal & Ethical Standards in Appraisal 4

Question 1

An appraisal management company (AMC) pressures an appraiser to remove a downward adjustment for a deteriorating neighborhood. The appraiser should:

Accepted Answer

Refuse and report the pressure to the appropriate state board if it persists

Answer

Yielding to pressure to alter conclusions violates independence; persistent coercion should be reported to the state appraiser regulatory board.

Question 2

The concept of 'arms-length transaction' is critical in comparable selection because:

Accepted Answer

It confirms the sale was conducted under normal market conditions without duress

Answer

Arms-length transactions reflect market value because both parties acted prudently, without unusual motivation or duress.

Question 3

Which federal law prohibits appraisers from discriminating based on racial composition of a neighborhood?

Accepted Answer

Fair Housing Act and Equal Credit Opportunity Act

Answer

The Fair Housing Act and ECOA prohibit appraisers from considering race, color, national origin, or other protected characteristics in valuation.

Question 4

An appraiser who is asked to appraise a property type they have never appraised before should:

Accepted Answer

Disclose the lack of experience to the client and either acquire competency or decline

Answer

USPAP's Competency Rule requires disclosure of inexperience to the client prior to acceptance and a plan to acquire competency.

Question 5

Under USPAP, the minimum record retention period for workfiles after delivery of the final opinion is:

Accepted Answer

5 years

Answer

USPAP requires workfiles to be retained for at least five years after preparation or two years after final disposition of legal proceedings, whichever is longer.

(IACP) Independent Appraisers Certification Program Practice Test

(IACP) Independent Appraisers Certification Program Practice Test

IACP Legal & Ethical Standards in Appraisal 4