The central prohibition running through the Conduct section of the Ethics Rule is that an appraiser must not:
Correct Answer
D) Communicate assignment results in a misleading or fraudulent manner
Why this is correct: The Conduct section of the Ethics Rule is fundamentally about honesty. The core prohibition is against communicating assignment results in a misleading or fraudulent manner. All other specific rules (e.g., no advocacy, no predetermined results) stem from this principle. Why the other choices are wrong: 'Charge fees that differ from those charged by competitors in the same market' is not prohibited; fee competition is allowed. 'Perform more than one assignment on a property in any calendar year' is incorrect; multiple assignments are permissible if properly handled. 'Accept assignments from clients located outside the appraiser's home state' is generally allowed, subject to state licensing laws. Exam tip: When in doubt, ask: "Could this communication mislead an intended user?" If yes, it's a violation.
Why This Is the Correct Answer
Why this is correct: The Conduct section of the Ethics Rule is fundamentally about honesty. The core prohibition is against communicating assignment results in a misleading or fraudulent manner. All other specific rules (e.g., no advocacy, no predetermined results) stem from this principle. Why the other choices are wrong: 'Charge fees that differ from those charged by competitors in the same market' is not prohibited; fee competition is allowed. 'Perform more than one assignment on a property in any calendar year' is incorrect; multiple assignments are permissible if properly handled. 'Accept assignments from clients located outside the appraiser's home state' is generally allowed, subject to state licensing laws. Exam tip: When in doubt, ask: "Could this communication mislead an intended user?" If yes, it's a violation.
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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