An appraiser asked to appraise a property they previously appraised for a different client must:
Correct Answer
C) Disclose the prior service to the new client before accepting
Why this is correct: The Ethics Rule requires disclosure of any prior service involving the same property within a specified look-back period (typically three years) to the prospective client before accepting the assignment. This allows the client to assess potential bias or conflict. Why the other choices are wrong: 'Provide the prior report to the new client' is wrong; the prior report is confidential to the prior client unless they authorize its release. 'Decline because of the previous engagement' is wrong; prior service does not automatically prohibit a new assignment if properly disclosed. 'Charge exactly the same fee as was charged for the prior assignment' is wrong; fees are negotiable and not regulated by this rule. Exam tip: Remember the sequence: disclose before accepting, and disclose again in the certification.
Why This Is the Correct Answer
Why this is correct: The Ethics Rule requires disclosure of any prior service involving the same property within a specified look-back period (typically three years) to the prospective client before accepting the assignment. This allows the client to assess potential bias or conflict. Why the other choices are wrong: 'Provide the prior report to the new client' is wrong; the prior report is confidential to the prior client unless they authorize its release. 'Decline because of the previous engagement' is wrong; prior service does not automatically prohibit a new assignment if properly disclosed. 'Charge exactly the same fee as was charged for the prior assignment' is wrong; fees are negotiable and not regulated by this rule. Exam tip: Remember the sequence: disclose before accepting, and disclose again in the certification.
More USPAP Questions
Which type of appraisal report may contain the appraiser's analyses, opinions, and conclusions but is intended for use by the client only?
How long must an appraiser retain the workfile for an appraisal assignment under USPAP?
If an appraiser uses a hypothetical condition that the subject property is 10% larger than it actually is, this must be:
Under Standard 1, when developing a real property appraisal, an appraiser must:
An appraiser accepts an assignment to appraise a specialized industrial property but has never appraised this property type before. To comply with the Competency Rule, the appraiser:
According to the Scope of Work Rule, the scope of work must be appropriate to the:
According to Standard 1, when developing an opinion of market value, an appraiser must analyze:
A lender emails: 'We need at least $450,000 to make this loan work — can you take the assignment?' Accepting on that basis is:
An appraiser is developing an opinion of market value for a 20-unit apartment building. The appraiser finds three comparable sales with the following information: Sale 1: 18 units, sold for $1,800,000; Sale 2: 22 units, sold for $2,200,000; Sale 3: 24 units, sold for $2,280,000. What is the average price per unit for these comparables?
In developing a scope of work, an appraiser must consider all of the following factors EXCEPT:
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