An AMC acting for a creditor offers $200 for a covered residential appraisal when comparable work locally often pays $400–$450. Under Regulation Z’s customary-and-reasonable fee rule, which party bears the compensation obligation?
Correct Answer
A) The creditor and its AMC agent must satisfy the fee rule
Regulation Z §1026.42(f) requires the creditor and its agents to compensate a fee appraiser at a customary and reasonable rate for comparable work in the property’s geographic market. The appraiser may negotiate or decline, but the rule does not itself command every appraiser to reject a lower offer.
Why This Is the Correct Answer
The federal customary-and-reasonable compensation rule places the payment duty on the creditor and its agent. A fee appraiser may discuss terms or decline, but the $200 offer alone does not create a USPAP duty for that appraiser to refuse.
More USPAP Questions
An appraiser is analyzing three comparable sales with the following data: Sale 1: $350,000 with +$10,000 adjustments; Sale 2: $340,000 with -$5,000 adjustments; Sale 3: $360,000 with -$15,000 adjustments. What are the adjusted sale prices?
How often must appraisers complete continuing education to maintain their license or certification?
An AMC placed 2,500 appraisal orders in a year. What additional fact is needed to determine whether it meets the federal AMC panel-size threshold?
In an Appraisal Report for a unique historic property, which item is NOT a USPAP reporting requirement?
An appraiser is preparing a narrative appraisal report for a commercial property. Which organizational approach is most commonly used?
Under FIRREA, which federal agency was given the authority to set minimum standards for real estate appraisers performing appraisals in federally related transactions?
How often must licensed and certified appraisers complete continuing education to maintain their credentials according to AQB requirements?
A state appraiser regulatory agency is conducting a review of an appraiser's work. Which of the following is NOT typically within their authority?
An appraiser is asked to provide a retrospective value opinion for a property as of a date one year ago. The current market conditions are significantly different from those a year ago. The appraiser should:
In a narrative appraisal report, which section would typically contain the appraiser's analysis of highest and best use?
People Also Study
Real Estate Market
13.6% of exam
Property Description
11.8% of exam
Land or Site Valuation
4.5% of exam
Sales Comparison Approach
16.4% of exam
Cost Approach
13.6% of exam
Related Tools
Previous Question
A narrative appraisal report for a commercial property must include detailed analysis of income, expenses, and capitalization rates. This level of detail is primarily required because:
Next Question
What is the minimum experience requirement for a Certified General Appraiser according to AQB criteria?