Under the management section, an appraiser must disclose:
Correct Answer
C) Payment made to procure the assignment
Why this is correct: The Management section of the Ethics Rule requires disclosure of any fee or other valuable consideration paid for procuring an assignment (e.g., a referral fee). This ensures transparency to the client about potential influences. Why the other choices are wrong: 'The names of all other current clients' is wrong because this is not required by the Ethics Rule; client confidentiality is protected. 'The appraiser's total annual revenue' is wrong because this is private business information and not required for disclosure. 'The appraiser's continuing education record' is wrong because this is typically reported to the state licensing board, not disclosed in assignment certifications. Exam tip: Key disclosures under Management are: compensation arrangements, referral fees, and who provided significant professional assistance.
Why This Is the Correct Answer
Why this is correct: The Management section of the Ethics Rule requires disclosure of any fee or other valuable consideration paid for procuring an assignment (e.g., a referral fee). This ensures transparency to the client about potential influences. Why the other choices are wrong: 'The names of all other current clients' is wrong because this is not required by the Ethics Rule; client confidentiality is protected. 'The appraiser's total annual revenue' is wrong because this is private business information and not required for disclosure. 'The appraiser's continuing education record' is wrong because this is typically reported to the state licensing board, not disclosed in assignment certifications. Exam tip: Key disclosures under Management are: compensation arrangements, referral fees, and who provided significant professional assistance.
More USPAP Questions
Which statement best defines a hypothetical condition under USPAP?
According to the Competency Rule, if an appraiser lacks the knowledge and experience to complete an assignment competently, which action is NOT acceptable?
An appraiser runs only the sales comparison approach on a standard tract home and omits the cost and income approaches. Under Standard 1 this is:
A value opinion for a subdivision as if fully built out two years from now is what kind of assignment, and what does it require?
A hypothetical condition differs from an extraordinary assumption in that a hypothetical condition:
An appraiser must disclose in the certification whether they have:
A client-imposed requirement — 'use only comps from our approved list' — is best described as:
Under Standard 1, when developing a real property appraisal, an appraiser must:
The certification required by Standards Rule 2-3 must be signed by:
According to Standard 1, when developing an opinion of market value, an appraiser must analyze:
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A signed report contains a value conclusion but no explanation of how the approaches were reconciled. Under Standard 2 this is:
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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: