Report Writing & Ethical Standards Flashcards

Which USPAP rule requires an appraiser to keep assignment-related data confidential?

Answer: Confidentiality section of the Ethics Rule

The Confidentiality section of the Ethics Rule prohibits an appraiser from disclosing confidential information or assignment results without proper authorization.

Under USPAP, an appraiser who lacks the competency to complete an assignment must:

Answer: Disclose the lack of knowledge, take steps to acquire competency, or decline the assignment

The Competency Rule requires the appraiser to disclose the lack, acquire competency before or during the assignment, or withdraw.

A 'limiting condition' in an appraisal report is best described as:

Answer: A statement that constrains the scope, use, or reliability of the appraisal

Limiting conditions are statements that restrict the applicability, scope, or reliability of the appraisal conclusions.

When is a jurisdictional exception to USPAP permissible?

Answer: When a law or regulation in the jurisdiction conflicts with USPAP and the exception is identified in the report

A jurisdictional exception is only permissible when applicable law or regulation precludes compliance with a USPAP requirement, and it must be identified in the report.

In the certification required by USPAP, the appraiser must attest that:

Answer: The analyses, opinions, and conclusions are limited only by the stated assumptions and limiting conditions

The certification must state that conclusions are limited only by reported assumptions and limiting conditions, ensuring transparency about what constrains the appraiser's opinion.

Which of the following is an example of an 'extraordinary assumption' in an appraisal?

Answer: Assuming a planned road improvement adjacent to the property will be completed as scheduled

An extraordinary assumption presumes a specific uncertain fact to be true; assuming a proposed road will be completed is uncertain and material to the value opinion.

Under the Management section of USPAP's Ethics Rule, which practice is prohibited?

Answer: Paying a fee to a referral source that is not disclosed to the client

The Management section prohibits undisclosed fees paid to referral sources because they may impair appraiser independence.