USPAP Ethics Rule Flashcards

Which of the following best describes 'impartiality' as required by the USPAP Ethics Rule?

Answer: Having no personal interest in the outcome of an assignment

Impartiality means the appraiser has no personal interest in the property or transaction that could bias the value conclusion.

Under the Ethics Rule, an appraiser who misrepresents their qualifications in a report is violating which section?

Answer: Conduct

Misrepresenting qualifications in a report falls under the Conduct section, which prohibits false or misleading communication.

An appraiser accepts a real estate listing assignment from the same client for whom they performed an appraisal. Which USPAP principle is at risk?

Answer: Independence

Performing multiple roles for the same client in the same transaction can compromise the appraiser's independence and impartiality.

The Ethics Rule's Management section specifically prohibits appraisers from:

Answer: Accepting contingent compensation based on reported value

The Management section prohibits compensation contingent on the reporting of a predetermined value or a direction in value.

Which statement about the USPAP Ethics Rule and third-party requests for workfiles is correct?

Answer: Appraisers may provide workfiles to peer reviewers without client consent if required by law

USPAP allows workfile disclosure to duly authorized professional peer review committees or when required by law, even without client consent.

An appraiser discovers that a prior appraisal they completed contains a material error. Under the Ethics Rule, the appraiser should:

Answer: Notify the client and correct the error

The Ethics Rule's Conduct section requires appraisers to act with integrity, which includes correcting material errors and notifying affected parties.