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 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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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: