Within the USPAP Nondiscrimination section, which persons’ protected characteristics are covered?
Correct Answer
C) Owners, buyers, users, clients and residents
The comment defines “person(s)” broadly: property or asset owners, purchasers or potential purchasers, those who might use or benefit from the property, clients and their agents and other intended users, and the inhabitants of a geographic area.
Why This Is the Correct Answer
Option C is correct because the comment defines persons to include property owners, purchasers or potential purchasers, individuals who might use or benefit from a property, clients and other intended users, and the inhabitants of a geographic area. Owners, buyers, users, clients and residents of the area captures that broad list. The definition also says it is not limited to those named.
Why the Other Options Are Wrong
Option A: The property owner and no one else
Option A is wrong because limiting coverage to the property owner and no one else ignores purchasers, users, clients and area inhabitants named in the definition.
Option B: The borrower and the lender, and no one else
Option B is wrong because restricting coverage to the borrower and the lender and no one else is far narrower than the definition, which includes owners, purchasers, users and area inhabitants.
Option D: The appraiser’s own employees and staff
Option D is wrong because the appraiser's own employees and staff are not the group the definition lists; it focuses on owners, purchasers, users, clients and inhabitants of an area.
Owner to neighborhood
Picture a circle widening from the owner to buyers, users, clients and finally the whole neighborhood. All of them are covered persons.
How to use: Use this when a question asks whose characteristics are protected under the Nondiscrimination section.
Exam Tip
Options that end with "and no one else" are likely too narrow for this broadly defined term.
Common Mistakes to Avoid
- -Thinking only the owner's characteristics are protected
- -Limiting coverage to parties in the loan transaction
- -Overlooking the inhabitants of the surrounding area
Concept Deep Dive
Analysis
This question tests how broadly USPAP defines "person(s)" in the Nondiscrimination section of the Ethics Rule. The comment lists owners, purchasers, users, clients and intended users, and the inhabitants of a geographic area. The correct answer is the broad list, not a narrow one.
Background Knowledge
The Nondiscrimination section of the Ethics Rule bars basing value on protected characteristics. Its comment defines persons broadly so that characteristics of neighborhood residents, not only the owner or client, cannot be a basis for value. The list is expressly not exhaustive.
Real-World Application
An appraiser considers commenting on the ethnic makeup of a neighborhood's residents. Because area inhabitants are covered persons, their protected characteristics cannot be used as a basis for the value opinion.
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