USPAP Ethics and Competency 2 — Questions and Answers
Question 1: Which USPAP rule specifically prohibits an appraiser from knowingly misrepresenting property characteristics?
- Competency Rule
- Scope of Work Rule
- Ethics Rule — Conduct section (Correct answer)
- STANDARD 1
Correct answer: Ethics Rule — Conduct section
The Conduct section of the Ethics Rule prohibits appraisers from communicating false, misleading, or fraudulent information about a property.
Question 2: If an appraiser accepts an assignment with a predetermined value conclusion, which USPAP rule is violated?
- Competency Rule
- Ethics Rule (Correct answer)
- Scope of Work Rule
- STANDARD 2
Correct answer: Ethics Rule
Accepting an assignment with a predetermined value conclusion violates the Ethics Rule because it compromises independence and impartiality.
Question 3: Under USPAP, who is ultimately responsible for the contents of an appraisal report prepared with the assistance of a trainee?
- The trainee
- The supervising appraiser (Correct answer)
- The client
- The Appraisal Foundation
Correct answer: The supervising appraiser
The supervising appraiser is responsible for the work and report, even when a trainee assists in data collection or analysis.
Question 4: Under the Ethics Rule, which action is expressly prohibited regarding advertising?
- Listing credentials on a website
- Advertising services in multiple states
- Making false or misleading statements in advertising (Correct answer)
- Publishing completed appraisal fees
Correct answer: Making false or misleading statements in advertising
USPAP prohibits appraisers from making false or misleading statements in advertising or solicitation materials.
Question 5: An appraiser who previously performed an appraisal on a property now has a financial interest in that property. What does USPAP require?
- The appraiser must withdraw from all future assignments involving the property
- The appraiser must disclose the interest to the client before accepting any new assignment (Correct answer)
- The appraiser must obtain an independent review
- No action is required if the interest is minor
Correct answer: The appraiser must disclose the interest to the client before accepting any new assignment
USPAP requires appraisers to disclose any financial interest in a property to the client before accepting an assignment involving that property.
Question 6: Which statement best describes the USPAP Competency Rule's application?
- It applies only to appraisers with fewer than five years of experience
- It applies before and during an assignment (Correct answer)
- It applies only when state law requires competency review
- It applies only to complex assignments
Correct answer: It applies before and during an assignment
The Competency Rule applies both before accepting and throughout the completion of an assignment, requiring ongoing competency.
USPAP Ethics and Competency 2
Which USPAP rule specifically prohibits an appraiser from knowingly misrepresenting property characteristics?