What must the certification state about the appraiser's compensation?
Correct Answer
D) That it was not contingent on the outcome
Why this is correct: The certification must state that the appraiser's compensation is not contingent on the reporting of a predetermined value, the direction of value, or the occurrence of a subsequent event. This addresses independence and impartiality. Why the other choices are wrong: The exact amount paid is not required. Stating the fee was customary and reasonable does not address the contingency issue. Stating the invoice was paid in full is irrelevant to independence. Exam tip: Certification focuses on the nature of compensation (non-contingent), not the amount.
Why This Is the Correct Answer
Why this is correct: The certification must state that the appraiser's compensation is not contingent on the reporting of a predetermined value, the direction of value, or the occurrence of a subsequent event. This addresses independence and impartiality. Why the other choices are wrong: The exact amount paid is not required. Stating the fee was customary and reasonable does not address the contingency issue. Stating the invoice was paid in full is irrelevant to independence. Exam tip: Certification focuses on the nature of compensation (non-contingent), not the amount.
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