An appraiser has a bias that prevents impartial performance of a proposed assignment. What does USPAP require?
Correct Answer
B) Do not perform the assignment with that bias; disclosure alone does not cure it
Bias that prevents impartial, independent or objective performance cannot be cured by disclosure or client consent. The appraiser must not perform the assignment with bias; disclosure rules for a property interest are a separate obligation.
Why This Is the Correct Answer
Option B is correct because USPAP states an appraiser must not perform an assignment with bias, defined as a preference or inclination that precludes impartiality, independence or objectivity. Disclosure or client consent does not cure bias, so the appraiser cannot perform the assignment with that bias.
Why the Other Options Are Wrong
Option A: Disclose it to the client before acceptance and then perform the biased work as agreed
Option A discloses the bias before acceptance and then performs the biased work. Disclosure does not cure bias; USPAP prohibits performing an assignment with bias.
Option C: Disclose the bias only if the final value changes because of it
Option C discloses the bias only if the final value changes. The prohibition applies to performing the assignment with bias at all, not only when the outcome is affected.
Option D: Treat client consent as permission for biased analysis
Option D treats client consent as permission for biased analysis. Client consent cannot authorize what USPAP prohibits, because impartiality protects the credibility of the results.
Bias cannot be disclosed away
Interests may be disclosed, but bias must be absent from the work; no disclosure or consent fixes it.
How to use: Use it to rule out answers offering disclosure or consent as a remedy for bias.
Exam Tip
Distinguish bias from interests. If the stem says the bias prevents impartial performance, the answer is not to perform with that bias.
Common Mistakes to Avoid
- -Believing disclosure cures bias
- -Treating client consent as permission
- -Confusing bias with a disclosable property interest
Concept Deep Dive
Analysis
This question tests how USPAP treats bias. Bias is a preference or inclination that precludes impartiality, independence or objectivity. Because USPAP states an appraiser must not perform an assignment with bias, neither disclosure nor client consent makes biased performance acceptable.
Background Knowledge
The USPAP Ethics Rule requires appraisers to perform assignments with impartiality, objectivity and independence. Bias is distinct from a disclosable interest, such as a current or prospective interest in the property, which has its own disclosure obligations. Some conflicts can be handled through disclosure, but bias cannot.
Real-World Application
An appraiser holds a strong preference against a particular type of housing that would prevent an objective analysis of a property of that type. Rather than disclose the bias and proceed, the appraiser declines the assignment so it can be performed impartially by someone else.
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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