Ch 3 Quiz Ethics Flashcards
Appraiser Amy agrees to pay a fee to be included on Lender B’s “approved appraiser” list. Which statement is TRUE regarding this situation?
This is permissible under USPAP as long as it is disclosed.
True or False? USPAP permits an appraiser to be biased in certain appraisal assignments, as long as the bias is properly disclosed.
FALSE
An appraiser finds that the pending sale price of the subject residential property is not supported by market data. To avoid causing a problem for the buyer and seller, the appraiser reconciles the value conclusion to meet the sale price anyway. Which statement is true regarding this situation?
The appraiser has violated his ethical obligations by doing this.
The fact that the appraiser has previously appraised a property is:
Not confidential information, and can be disclosed
True or False? If not required to comply with USPAP by law, regulation, or agreement with the client, an appraiser may voluntarily choose to comply with USPAP
TRUE
ETHICS RULE states: An individual should comply any time that individual represents that he or she is performing as an appraiser.
Is it ethical for an appraiser to offer a reduced fee on an appraisal if the client’s loan does not close?
No
An appraiser is appraising a property with two structures on one tract of land. The client asks the appraiser not to mention the second structure, as it is in poor condition. Which statement is TRUE regarding this situation?
If the appraiser complies with this request, this would be an unethical act.
What term is defined as “relating to what is good or bad; having to do with moral duty and obligation”?
Ethics
Is an appraiser permitted to base his or her appraisal fee on the owner’s estimate of value of the subject property?
Yes, this is permissible
May an appraiser disregard her USPAP obligations if she does not charge a fee for the assignment?
No
True or False? The mere fact that an appraiser has previously appraised a property is typically NOT considered confidential information under USPAP.
TRUE
Ethics concerns our obligation to consider
the well-being of society as a whole, the well-being of others, our own personal well-being
An appraiser pays a fee for the procurement of an assignment. Where in the appraisal report does this payment have to be disclosed?
In the certification and any transmittal letter where conclusions are stated
“A preference or inclination that precludes an appraiser’s impartiality, independence, or objectivity in an assignment” is the definition of which USPAP term?
Bias
Under USPAP, an appraiser would be permitted to base the fee for a residential mortgage lending appraisal on:
The GLA of the dwelling. An appraiser may not base an appraisal fee on the value of the property or whether or not the loan closes. It is, however, permissible to base appraisal fees on a factor that is outside the appraiser’s control, such as GLA, assessed value, loan amount, or other factors.
