USPAP USPAP Ethics Rule 2 — Questions and Answers
Question 1: Which of the following best describes 'impartiality' as required by the USPAP Ethics Rule?
- Using only one appraisal approach
- Having no personal interest in the outcome of an assignment (Correct answer)
- Charging the same fee to all clients
- Using the same comparable sales for all assignments
Correct 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.
Question 2: Under the Ethics Rule, an appraiser who misrepresents their qualifications in a report is violating which section?
- Confidentiality
- Conduct (Correct answer)
- Management
- Record Keeping
Correct answer: Conduct
Misrepresenting qualifications in a report falls under the Conduct section, which prohibits false or misleading communication.
Question 3: An appraiser accepts a real estate listing assignment from the same client for whom they performed an appraisal. Which USPAP principle is at risk?
- Competency
- Independence (Correct answer)
- Scope of Work
- Record Keeping
Correct answer: Independence
Performing multiple roles for the same client in the same transaction can compromise the appraiser's independence and impartiality.
Question 4: The Ethics Rule's Management section specifically prohibits appraisers from:
- Using three approaches to value
- Accepting contingent compensation based on reported value (Correct answer)
- Disclosing the intended use to the client
- Conducting exterior-only inspections
Correct 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.
Question 5: Which statement about the USPAP Ethics Rule and third-party requests for workfiles is correct?
- Appraisers must provide workfiles to any requesting party
- Appraisers may provide workfiles to peer reviewers without client consent if required by law (Correct answer)
- Workfiles may be shared freely once the assignment is complete
- Clients have no right to access workfiles
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.
Question 6: An appraiser discovers that a prior appraisal they completed contains a material error. Under the Ethics Rule, the appraiser should:
- Destroy the prior workfile to avoid liability
- Notify the client and correct the error (Correct answer)
- Ignore it unless the client complains
- Charge an additional fee to issue a corrected report
Correct 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.
USPAP USPAP Ethics Rule 2
Which of the following best describes 'impartiality' as required by the USPAP Ethics Rule?