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.
An appraiser paid a referral fee in conjunction with an assignment. Which statement is TRUE regarding this situation, according to USPAP?
The appraiser must disclose that a fee was paid, but does not have to disclose the amount paid.
An appraiser states to a client that the appraisal fee will be $100 higher than the standard fee because the appraiser’s value opinion is for the property is over $500,000. Is it a violation of USPAP for the appraiser to quote the fee in this manner?
Yes
True or False? If an appraiser does not charge a fee for an appraisal, he is not required to comply with USPAP in completing it.
FALSE
A client has requested that an appraiser value a property that is improved with an old dilapidated single family home, and asks the appraiser not to mention the existence of the home in the appraisal report. Which statement is TRUE regarding this situation?
It would be misleading if the appraiser did not disclose the presence of this structure in the appraisal report.
True or False? Webster’s Dictionary defines ethics as relating to the principles established by the world’s most common religions.
FALSE
True or False? An appraiser who selects only the data that supports the contract sale price in an appraisal has violated USPAP.
TRUE
True or False? If an appraiser does not charge a fee for an appraisal, he is not required to comply with USPAP in completing it.
FALSE
An appraiser states to a client that the appraisal fee will be $100 higher than the standard fee because the appraiser’s value opinion is for the property is over $500,000. Is it a violation of USPAP for the appraiser to quote the fee in this manner?
Yes
USPAP addresses an appraiser’s ethical obligations in:
the ETHICS RULE
Appraiser Bill pays a $150 fee to be included on a lender’s “approved appraiser” list. When Bill prepares appraisal reports for this lender:
he must disclose that a fee was paid, but he does not have to disclose the amount
When should an appraiser’s compensation be dependent on reporting of a predetermined value conclusion?
Never
An appraiser offers a client a reduced fee on an appraisal if the client’s loan does not close. Which statement is TRUE regarding this situation.
This is unethical on the part of the appraiser.
Which of these factors would result in a violation of USPAP if the appraiser based his or her appraisal fee on it?
The appraiser’s value opinion
An appraiser finds out after completing an appraisal that the lender/client’s loan did not close. What should the appraiser do regarding the appraisal fee?
Charge the agreed-upon fee regardless of whether the loan closed
