Under the Competency Rule, if an appraiser lacks the knowledge or experience to complete an assignment competently, the appraiser must:

Correct Answer

D) Disclose the gap and take steps to become competent

The Competency Rule (USPAP) governs an appraiser's duty to perform assignments competently. The rule's core principle is that an appraiser must have the knowledge and experience to complete an assignment competently at the time of accepting it. However, if an appraiser initially lacks competency, the rule provides a specific, structured path forward. Why this is correct: "Disclose the gap and take steps to become competent" is correct because the Competency Rule explicitly permits an appraiser to accept an assignment despite an initial lack of knowledge or experience, provided they immediately disclose this lack to the client and, before completing the assignment, take all necessary steps (e.g., research, consulting, education) to perform the work competently. Why the other choices are wrong: "Refer the whole assignment to another appraiser" is not required by the rule; the appraiser may choose to do this, but the rule allows for the alternative of becoming competent. "Decline the assignment immediately and outright" is incorrect because declining is one option, but the rule does not mandate it; the appraiser may proceed by following the disclosure-and-competency path. "Complete it under an extraordinary assumption" is wrong because an extraordinary assumption addresses a condition affecting the analysis, not a deficiency in the appraiser's own knowledge or experience; using one to mask a competency gap violates the rule. Exam tip: Remember the Competency Rule sequence: disclose the lack to the client first, then take steps to become competent before delivering the appraisal. It does not force you to decline or refer.