In a residential real-property appraisal, may a client direct the appraiser to base value on residents’ race or religion?
Correct Answer
D) No; USPAP prohibits basing a value opinion on race or religion
For residential real-property assignments, protected personal characteristics cannot be used as a basis for the value opinion. Appraisers must understand and comply with applicable antidiscrimination laws; client requests do not authorize a prohibited basis or replace the Ethics Rule.
Why This Is the Correct Answer
Option D is correct because USPAP states an appraiser must not develop or report a value opinion that, in whole or in part, is based on the actual or perceived race, ethnicity, color or religion of people. A client request cannot authorize a prohibited basis. Appraisers must also comply with applicable antidiscrimination laws.
Why the Other Options Are Wrong
Option A: No, unless the client gives written consent to that basis
Option A is wrong because written client consent does not create an exception; the prohibition on basing value on race or religion applies regardless of client consent.
Option B: Yes, as long as the resulting value appears plausible to the client
Option B is wrong because a value appearing plausible to the client does not make a prohibited basis acceptable; basing value on race or religion is forbidden whatever the result.
Option C: Yes, because the restriction applies only to mass appraisal work
Option C is wrong because the restriction is not limited to mass appraisal work; it applies to residential real property assignments like this one.
No client can waive it
Client instructions do not unlock a prohibited basis; race and religion stay out of the value.
How to use: Use this when a question suggests a client can authorize use of protected characteristics.
Exam Tip
Read every option that begins with no to the end; an added exception such as written consent can make it wrong.
Common Mistakes to Avoid
- -Thinking written client consent allows a prohibited basis
- -Believing the rule applies only to mass appraisal
- -Accepting a prohibited basis if the result seems reasonable
Concept Deep Dive
Analysis
This question tests whether a client can direct an appraiser to use protected characteristics as a basis for value. USPAP's Nondiscrimination section forbids it, and client instructions cannot override that. Watch for an answer that starts with no but adds a false exception.
Background Knowledge
The Ethics Rule's Nondiscrimination section prohibits developing or reporting value based on protected characteristics. It applies regardless of client instructions. Appraisers must also follow federal and other applicable antidiscrimination laws.
Real-World Application
A client suggests the appraiser lower value because of the religious makeup of the neighborhood. The appraiser declines to use that factor and bases the opinion on market data about the property.
More USPAP Questions
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Under 2024 USPAP Standard 1, which listed assignment element must be identified in developing a real property appraisal?
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According to USPAP, what is the primary purpose of the Ethics Rule?
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Which list gives the sections of the 2024 USPAP Ethics Rule?
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