Discussing an assignment's results with a colleague for informal advice is:
Correct Answer
B) Permitted with care — confidential information must be protected
Why this is correct: The Ethics Rule permits consultation with colleagues, but the appraiser has a duty to protect confidential information. This includes the identity of the client and property, and assignment results. A discussion about methodology can usually occur without revealing such details. Why the other choices are wrong: Consultation is not always prohibited; it is a normal professional activity. The colleague does not need to be a state-certified appraiser. The consultation can occur during the assignment, not only after completion. Exam tip: You can seek advice, but you must be the one signing the report and you must not disclose confidential assignment facts.
Why This Is the Correct Answer
Why this is correct: The Ethics Rule permits consultation with colleagues, but the appraiser has a duty to protect confidential information. This includes the identity of the client and property, and assignment results. A discussion about methodology can usually occur without revealing such details. Why the other choices are wrong: Consultation is not always prohibited; it is a normal professional activity. The colleague does not need to be a state-certified appraiser. The consultation can occur during the assignment, not only after completion. Exam tip: You can seek advice, but you must be the one signing the report and you must not disclose confidential assignment facts.
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:
People Also Study
Valuation Principles & Procedures
25% of exam
Property Description & Analysis
20% of exam
Market Analysis & Highest/Best Use
15% of exam
Appraisal Math & Statistics
15% of exam
Report Writing & Compliance
10% of exam