An appraiser accepts an assignment involving a property type the appraiser has valued once before, years ago. Competency requires:
Correct Answer
D) An honest self-assessment and any steps needed to be current
Past experience does not establish current competency by itself. Assess the knowledge and experience needed for this assignment. If a necessary competency gap is known before agreeing, disclose it to the client then, take appropriate steps to perform competently, and describe the gap and the steps in the report. A waiver cannot supply missing competency; if it cannot be acquired, decline or withdraw.
Why This Is the Correct Answer
Option D is correct because the appraiser is responsible for having the competency to address each necessary factor or for following the steps in the Competency Rule. That starts with an honest assessment of whether past experience is current and sufficient. If a gap is known before agreeing, the appraiser must disclose it to the client, take the steps necessary to complete the work competently and describe the gap and steps in the report.
Why the Other Options Are Wrong
Option A: Consultation with the state appraisal board before accepting
Option A requires consultation with the state appraisal board before accepting. The Competency Rule does not require board consultation; it requires the appraiser to assess competency and follow its disclosure and acquisition steps when needed.
Option B: Automatic refusal of the assignment by the appraiser
Option B calls for automatic refusal of the assignment. The Competency Rule permits an appraiser to acquire competency by disclosing the gap and taking the necessary steps, so refusal is not automatic.
Option C: A waiver of competency signed by the client in advance
Option C calls for a waiver of competency signed by the client in advance. A client waiver cannot supply missing competency; the appraiser must have or acquire the needed knowledge and experience.
Once Is Not Current
Doing a job once, years ago, does not prove you can do it well today. Check yourself honestly and get current.
How to use: Use this phrase when a question relies on old or limited past experience.
Exam Tip
Competency questions usually point to an honest self-assessment and the Competency Rule steps. Client waivers and board approvals are not substitutes.
Common Mistakes to Avoid
- -Assuming one past assignment proves current competency
- -Relying on a client waiver to cover a competency gap
- -Believing any competency gap requires automatic refusal
Concept Deep Dive
Analysis
This question tests the Competency Rule when past experience may be outdated. Having valued a property type once, years ago, does not by itself establish current competency. The appraiser must honestly assess the knowledge and experience needed for this assignment and take any steps needed to perform competently.
Background Knowledge
Competency under USPAP depends on the specific assignment, including the property type, market, methods and any legal requirements. Experience can become outdated as markets and methods change. When a gap exists, the appraiser may acquire competency through steps like study, consultation or association with a competent appraiser, or decline or withdraw if that is not possible.
Real-World Application
An appraiser who valued a farm property once, many years ago, is offered a new farm assignment. She reviews recent sales, current methods and market trends to judge whether her knowledge is current. Finding a gap, she discloses it to the client before agreeing, works with an experienced farm appraiser and describes those steps in her report.
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