An appraiser learns that a prior report they signed contained a material error. The appropriate response is:
Correct Answer
B) Notify the client and correct the record appropriately
Why this is correct: The governing concept is the appraiser's ethical duty under USPAP to maintain the integrity of the profession and the public trust. When a material error is discovered, the appraiser must promptly notify the client and take steps to correct the record, as this preserves transparency and fulfills the obligation to the integrity of the work. Why the other choices are wrong: 'Take no action, since the report was already delivered' is wrong because delivery does not absolve the appraiser of the responsibility to correct a material error. 'Wait until the client discovers the error independently' is wrong because it violates the duty of candor and could be seen as deceptive. 'Destroy the workfile to avoid the appearance of fault' is wrong because it violates the Record Keeping Rule and compounds the original error into a more serious ethical breach. Exam tip: Remember the core ethical principles: honesty, transparency, and proper record-keeping. When an error is material, prompt disclosure and correction are always required.
Why This Is the Correct Answer
Why this is correct: The governing concept is the appraiser's ethical duty under USPAP to maintain the integrity of the profession and the public trust. When a material error is discovered, the appraiser must promptly notify the client and take steps to correct the record, as this preserves transparency and fulfills the obligation to the integrity of the work. Why the other choices are wrong: 'Take no action, since the report was already delivered' is wrong because delivery does not absolve the appraiser of the responsibility to correct a material error. 'Wait until the client discovers the error independently' is wrong because it violates the duty of candor and could be seen as deceptive. 'Destroy the workfile to avoid the appearance of fault' is wrong because it violates the Record Keeping Rule and compounds the original error into a more serious ethical breach. Exam tip: Remember the core ethical principles: honesty, transparency, and proper record-keeping. When an error is material, prompt disclosure and correction are always required.
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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