In a residential real property assignment, which set lists characteristics on which, under the Fair Housing Act provision of USPAP, an appraiser must not base an opinion of value?
Correct Answer
D) Race, color, religion, national origin, sex, disability, familial status
When completing a residential real property assignment, an appraiser must not base the value opinion in whole or in part on race, color, religion, national origin, sex, disability or familial status, the classes protected by the Fair Housing Act.
Why This Is the Correct Answer
Option D is correct because USPAP states that an appraiser completing a residential real property assignment must not base the value opinion in whole or in part on race, color, religion, national origin, sex, disability or familial status. These are the classes protected by the Fair Housing Act. The other options list property, borrower or neighborhood factors instead.
Why the Other Options Are Wrong
Option A: Lot size, gross living area, age, condition and construction quality
Option A is wrong because lot size, gross living area, age, condition and construction quality are physical property characteristics that appraisers legitimately analyze, not Fair Housing Act protected classes.
Option B: Credit score, income, loan amount and the size of the down payment
Option B is wrong because credit score, income, loan amount and down payment size are borrower or loan factors, not the Fair Housing Act protected classes listed in USPAP.
Option C: School ratings, crime statistics, traffic and street noise levels
Option C is wrong because school ratings, crime statistics, traffic and street noise are location or neighborhood factors, not the protected classes listed in the Fair Housing Act provision.
Seven Fair Housing Act classes
Remember the seven: race, color, religion, national origin, sex, disability and familial status. They describe people, not the house.
How to use: Use this when picking the Fair Housing Act protected list from options mixing people and property traits.
Exam Tip
The protected-class list describes characteristics of people, so options describing the house or the loan are not it.
Common Mistakes to Avoid
- -Confusing property features with protected classes
- -Mixing up borrower financial data with protected characteristics
- -Omitting disability or familial status from the list
Concept Deep Dive
Analysis
This question tests the Fair Housing Act characteristics listed in USPAP for residential assignments. The correct set is the list of protected classes, not property traits or borrower finances. Recognize the seven classes named in the rule.
Background Knowledge
The Ethics Rule's Nondiscrimination section incorporates the Fair Housing Act's protected classes for residential assignments. Value opinions must not rest in whole or in part on these characteristics. Property features remain proper subjects of analysis.
Real-World Application
A loan officer suggests that a family with several children will lower demand in a building. The appraiser does not let familial status affect the value and relies on market data about the property instead.
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?
An appraiser accepts an assignment involving a property type the appraiser has valued once before, years ago. Competency requires:
A Certified General appraiser is asked to value a specialized industrial property for the first time. The appraiser knows a competency gap exists before agreeing to the assignment. What is required if the appraiser proceeds?
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?
People Also Study
Real Estate Market
13.6% of exam
Property Description
11.8% of exam
Land or Site Valuation
4.5% of exam
Sales Comparison Approach
16.4% of exam
Cost Approach
13.6% of exam