USPAP Ethics and Competency 3

Question 1

Under USPAP, 'impartiality' in the Ethics Rule means the appraiser must:

Accepted Answer

Perform analysis without a predetermined conclusion

Answer

Impartiality requires the appraiser to conduct analysis and form conclusions without predetermining the result or favoring any party.

Question 2

When must an appraiser disclose prior services performed on a property?

Accepted Answer

Before accepting or within the appraisal report if services occurred within three years

Answer

USPAP requires disclosure of any prior services on the subject property performed within the three years preceding the current assignment.

Question 3

Which of the following scenarios would require invoking the Competency Rule?

Accepted Answer

Appraising a specialized industrial property the appraiser has never valued

Answer

When an appraiser encounters a property type or geographic area outside their experience, the Competency Rule is triggered and must be addressed.

Question 4

What is the primary purpose of the Ethics Rule in USPAP?

Accepted Answer

To ensure appraisers produce credible, unbiased value opinions

Answer

The Ethics Rule is designed to ensure that appraisers maintain integrity and independence so their value opinions are credible and trustworthy.

Question 5

Can an appraiser accept a fee for recommending a specific appraiser to a client?

Accepted Answer

No, referral fees for recommending appraisers are prohibited by USPAP

Answer

USPAP's Management section expressly prohibits appraisers from accepting fees for recommending a specific appraiser to a client.

USPAP Exam Practice Test