Which statement about an appraiser’s knowledge of antidiscrimination law matches USPAP?
Correct Answer
B) The appraiser must know these laws and when they apply to the assignment
USPAP requires the appraiser to have knowledge of antidiscrimination laws and regulations and of when they apply to the appraiser or the assignment, and to complete the assignment in full compliance with them.
Why This Is the Correct Answer
Option B is correct because USPAP states that an appraiser must have knowledge of antidiscrimination laws and regulations and when those laws or regulations apply to the appraiser or to the assignment. The appraiser must also complete the assignment in full compliance with applicable laws and regulations. Option B states this requirement accurately.
Why the Other Options Are Wrong
Option A: Knowledge is required only for appraisers of federally related transactions
Option A is wrong because USPAP's knowledge requirement is not limited to appraisers of federally related transactions. It applies to appraisers generally with respect to the laws that apply to them or their assignments.
Option C: The appraiser may rely on the lender to determine which laws apply
Option C is wrong because the appraiser must personally have knowledge of these laws and when they apply. Relying on the lender to decide which laws apply does not satisfy the appraiser's own obligation.
Option D: Knowledge is optional if the appraiser discloses the gap
Option D is wrong because the knowledge is required, not optional. Disclosing a gap in knowledge does not satisfy USPAP's requirement to know antidiscrimination laws and when they apply.
Know the law, own the duty
The appraiser must personally know antidiscrimination laws and when they apply; the duty cannot be outsourced or waived by disclosure.
How to use: Use this when an option shifts antidiscrimination knowledge to someone else or makes it optional.
Exam Tip
Options that make this knowledge optional, limited to certain transactions, or the lender's job are distractors.
Common Mistakes to Avoid
- -Believing antidiscrimination knowledge matters only for federally related transactions
- -Relying on the lender or client to determine which laws apply
- -Thinking disclosure of a knowledge gap satisfies the requirement
Concept Deep Dive
Analysis
This question tests USPAP's requirement concerning antidiscrimination laws. The appraiser must know these laws and regulations and when they apply to the appraiser or the assignment, and must complete the assignment in full compliance with applicable laws. The duty rests with the appraiser and is not limited to certain transactions.
Background Knowledge
USPAP addresses antidiscrimination laws in its Ethics Rule, requiring appraisers to know these laws and when they apply. Appraisers must complete assignments in full compliance with applicable laws and regulations. This responsibility belongs to the appraiser and cannot be handed off to the client.
Real-World Application
An appraiser takes an assignment in a neighborhood with a diverse population. The appraiser understands which fair housing and antidiscrimination laws apply and avoids basing conclusions on protected characteristics. The appraiser does not wait for the lender to explain these obligations.
More USPAP Questions
Under USPAP, what are assignment results?
The certification required by Standards Rule 2-3 must be signed by:
Under 2024 USPAP, which statement correctly combines the requirements for an oral real property appraisal report and its workfile?
An appraiser accepts an assignment involving a property type the appraiser has valued once before, years ago. Competency requires:
A Certified General appraiser is asked to value a specialized industrial property for the first time. The appraiser knows a competency gap exists before agreeing to the assignment. What is required if the appraiser proceeds?
Under 2024 USPAP Standard 1, which listed assignment element must be identified in developing a real property appraisal?
An appraiser provided an appraisal of the same property for another client 18 months ago. No confidentiality obligation prevents disclosing the fact of that service. Before agreeing to a new assignment, the appraiser must:
According to USPAP, what is the primary purpose of the Ethics Rule?
An appraiser is asked to determine 'fair market value' for an assignment. According to USPAP, the appraiser should:
Which list gives the sections of the 2024 USPAP Ethics Rule?
People Also Study
Real Estate Market
13.6% of exam
Property Description
11.8% of exam
Land or Site Valuation
4.5% of exam
Sales Comparison Approach
16.4% of exam
Cost Approach
13.6% of exam
Related Tools
Previous Question
A feasibility study includes an appraiser-developed opinion of the subject land’s value, used in assessing project viability. What determines whether appraisal requirements apply to that value opinion?
Next Question
Under USPAP 2024 SR 2-2(b), which statement correctly describes Restricted Appraisal Report use?