Ethics and Competency Flashcards

Under USPAP's Ethics Rule, which obligation must an appraiser fulfill to maintain independence?

Answer: Perform assignments without advocacy for any party

USPAP's Ethics Rule requires appraisers to perform assignments without bias or advocacy to preserve independence.

Which section of the USPAP Ethics Rule addresses receiving and paying fees?

Answer: Management section

The Management section of the Ethics Rule governs the business practices related to accepting and paying fees, including referral fees.

An appraiser who lacks the knowledge and experience to complete an assignment competently must do which of the following?

Answer: Disclose the lack of competency, take steps to acquire competency, or associate with a competent appraiser

USPAP's Competency Rule requires disclosure of any lack of competency and mandates taking steps to resolve it before or during the assignment.

Under the Confidentiality section of the Ethics Rule, an appraiser may NOT disclose confidential information without client permission EXCEPT to:

Answer: State enforcement agencies when legally required

USPAP permits disclosure of confidential information to state enforcement agencies as required by law, even without client consent.

Which of the following would be considered a violation of the Ethics Rule's Conduct section?

Answer: Accepting an assignment with a contingent fee based on the outcome

Accepting a contingent fee that depends on the outcome of the appraisal violates USPAP's Conduct section because it impairs independence.

How long must an appraiser retain work files under the USPAP Record Keeping Rule after the date of the report?

Answer: 5 years

USPAP's Record Keeping Rule requires appraisers to retain work files for at least five years after the date of the report or two years after final disposition of legal proceedings, whichever is longer.