Which of the following is NOT typically a function of state appraiser regulatory agencies?
Correct Answer
A) Setting customary and reasonable fees for appraisals
Why this is correct: State appraiser regulatory agencies focus on licensing, enforcement, and ensuring compliance with professional standards like USPAP. Setting fees is a market-driven function, not a regulatory one. Agencies monitor education and investigate complaints to uphold professional conduct. Why the other choices are wrong: Monitoring continuing education compliance is a core function to ensure license renewal requirements are met. Investigating complaints against appraisers is essential for enforcement. Issuing appraiser licenses and certifications is the primary licensing function of these agencies. Exam tip: Remember the regulatory agency's role is to enforce standards and license practitioners, not to intervene in market-based fee setting.
Why This Is the Correct Answer
State appraiser agencies generally handle credentials, continuing education and disciplinary complaints, whereas Regulation Z places customary-and-reasonable fee compensation duties on covered creditors and agents. The state appraiser board does not normally set each fee appraisal rate.
More USPAP Questions
An appraiser is analyzing three comparable sales with the following data: Sale 1: $350,000 with +$10,000 adjustments; Sale 2: $340,000 with -$5,000 adjustments; Sale 3: $360,000 with -$15,000 adjustments. What are the adjusted sale prices?
An AMC acting for a creditor offers $200 for a covered residential appraisal when comparable work locally often pays $400–$450. Under Regulation Z’s customary-and-reasonable fee rule, which party bears the compensation obligation?
How often must appraisers complete continuing education to maintain their license or certification?
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A state appraiser regulatory agency is conducting a review of an appraiser's work. Which of the following is NOT typically within their authority?
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An appraiser is asked to provide a retrospective value opinion for a property as of a date one year ago. The current market conditions are significantly different from those a year ago. The appraiser should:
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An appraiser makes the following adjustments to a comparable sale: +$5,000 for lot size, -$3,000 for condition, +$2,000 for garage. If the comparable sold for $285,000, what is the adjusted sale price?