An appraiser testifying as an expert witness for a plaintiff feels pressure to shade the analysis toward the client's case. USPAP's position is:
Correct Answer
D) Remain impartial and defend supported analysis
An appraiser acting as an appraiser in litigation must maintain impartial, independent and objective analysis. Being retained by one side does not authorize advocacy for a desired result. This does not prevent explaining or defending a supported appraisal conclusion.
Why This Is the Correct Answer
Option D is correct because USPAP states that an appraiser must not perform an assignment with bias and must not advocate the cause or interest of any party or issue. An appraiser testifying as an expert must remain impartial and present only the analysis the evidence supports. Defending a supported conclusion is consistent with impartiality.
Why the Other Options Are Wrong
Option A: Adopt the retaining party’s desired value
Option A is wrong because adopting the retaining party's desired value would be advocacy and bias. The appraiser's opinion must come from impartial analysis, not from the client's wishes.
Option B: Advocate a desired outcome if the fee is fixed
Option B is wrong because a fixed fee does not permit advocating a desired outcome. The prohibition on advocacy applies regardless of how the appraiser is paid.
Option C: Treat all litigation appraisal work as exempt
Option C is wrong because litigation appraisal work is not exempt from USPAP's ethical obligations. An appraiser acting as an appraiser in litigation must remain impartial, independent and objective.
Hired by a side, not partisan
An appraiser may be hired by one side in a lawsuit, but the analysis stays on no one's side.
How to use: Use this when a question involves pressure from a retaining party in litigation.
Exam Tip
In litigation questions, the correct answer keeps the appraiser impartial. Options tied to the client's desired value, fee arrangements or exemptions are distractors.
Common Mistakes to Avoid
- -Believing an appraiser hired by one party should support that party's position
- -Thinking litigation work is exempt from USPAP
- -Assuming a fixed fee removes the risk of advocacy
Concept Deep Dive
Analysis
This question tests impartiality when an appraiser works in litigation. The Ethics Rule says an appraiser must not perform an assignment with bias and must not advocate the cause or interest of any party or issue. Being retained by one side does not permit shading the analysis, though the appraiser may explain and defend supported conclusions.
Background Knowledge
The Ethics Rule requires appraisers to perform assignments with impartiality, objectivity and independence. In litigation, an appraiser may be retained by one side but cannot become that side's advocate. Explaining and defending a credible, supported opinion is appropriate; altering the analysis to favor a party is not.
Real-World Application
In a property damage lawsuit, the plaintiff's attorney hopes the appraiser will report a large loss in value. The appraiser analyzes the market evidence and reports the supported conclusion, even though it is smaller than the attorney wanted. On the witness stand, the appraiser explains and defends that supported analysis.
More USPAP Questions
Under USPAP, what are assignment results?
The certification required by Standards Rule 2-3 must be signed by:
Under 2024 USPAP, which statement correctly combines the requirements for an oral real property appraisal report and its workfile?
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Under 2024 USPAP Standard 1, which listed assignment element must be identified in developing a real property appraisal?
An appraiser provided an appraisal of the same property for another client 18 months ago. No confidentiality obligation prevents disclosing the fact of that service. Before agreeing to a new assignment, the appraiser must:
According to USPAP, what is the primary purpose of the Ethics Rule?
An appraiser is asked to determine 'fair market value' for an assignment. According to USPAP, the appraiser should:
Which list gives the sections of the 2024 USPAP Ethics Rule?
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