Ethics and Competency Flashcards

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

Answer: Perform analysis without a predetermined conclusion

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

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

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

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

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

Answer: Appraising a specialized industrial property the appraiser has never valued

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

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

Answer: To ensure appraisers produce credible, unbiased value opinions

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

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

Answer: No, referral fees for recommending appraisers are prohibited by USPAP

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

Under USPAP's Confidentiality section, which party is the appraiser permitted to share confidential assignment results with?

Answer: Only parties authorized by the client or law

Confidential assignment results may only be disclosed to parties authorized by the client or as required by law.