An appraiser discovers her cousin owns the subject property. What does USPAP require?
Correct Answer
D) Disclose the interest before accepting, and again in the report
Why this is correct: USPAP's Ethics Rule requires disclosure of any interest in the property or parties, which includes a family relationship. The appraiser must disclose this interest to the client before accepting the assignment and again in the report's certification. The rule focuses on transparency, not an automatic prohibition. Why the other choices are wrong: An automatic decline is not required; disclosure is the key. Family ties are considered an interest requiring disclosure. Disclosure is required upon acceptance, not only if the cousin objects. Exam tip: When in doubt, disclose. The duty is to reveal any interest, not necessarily to refuse the work.
Why This Is the Correct Answer
Why this is correct: USPAP's Ethics Rule requires disclosure of any interest in the property or parties, which includes a family relationship. The appraiser must disclose this interest to the client before accepting the assignment and again in the report's certification. The rule focuses on transparency, not an automatic prohibition. Why the other choices are wrong: An automatic decline is not required; disclosure is the key. Family ties are considered an interest requiring disclosure. Disclosure is required upon acceptance, not only if the cousin objects. Exam tip: When in doubt, disclose. The duty is to reveal any interest, not necessarily to refuse the work.
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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