USPAP Ethics Rule Flashcards

Which of the following is NOT a section of the USPAP Ethics Rule?

Answer: Competency

The Ethics Rule has four sections: Conduct, Management, Confidentiality, and Record Keeping; Competency is a separate USPAP rule.

Under USPAP, advertising appraisal services in a misleading manner violates which rule?

Answer: Ethics Rule — Management section

The Management section of the Ethics Rule prohibits appraisers from advertising services in a false, misleading, or exaggerated manner.

An appraiser's workfile must contain enough information to:

Answer: Recreate the report and support the appraiser's opinions and conclusions

USPAP requires workfiles to contain sufficient information to allow another appraiser to recreate the report and support the opinions and conclusions.

Which of the following would be a permissible disclosure of confidential information under the Ethics Rule?

Answer: Providing results to a state appraiser regulatory agency investigating a complaint

USPAP permits disclosure to state appraiser regulatory agencies as part of their investigative or disciplinary process.

Under the USPAP Ethics Rule, independence means the appraiser must:

Answer: Be free of any interest in the property or outcome that could bias the value

Independence requires the appraiser to be free of any personal interest in the property, transaction, or parties that could influence the value conclusion.

When an appraiser is also a principal in a real estate transaction involving the subject property, they are most likely violating which USPAP principle?

Answer: Independence

Serving as a principal in a transaction while also appraising the subject property creates an obvious conflict that violates the independence requirement of the Ethics Rule.