Ethics Rule, Record Keeping Rule, and Competency Rule Flashcards
The first 3 rules of USPAP
USPAP Standards are paired to address what two areas in regards to an appraiser’s ethical obligations?
development and reporting of assignment results
In USPAP’s ETHICS RULE, what general conduct by an appraiser fosters public trust?
Observing high standards and professional ethics
An appraiser’s value conclusion favors that cause of the client and the opinion is well supported by market data. What can you conclude from this info?
The appraiser’s value opinion appears to be objective
Module 4: Conduct Section
A property owner contacted an appraiser on a tax appeal case. The owner stipulated the appraisal must indicate a value that is at least 25% lower than the tax assessed value. Can the appraiser agree to perform this assignement?
No, the appraiser cannot agree to perform an assignment that includes the reporting of a predetermined value.
Module 4: Conduct Section
Can an individual acting in the role of an appraiser agree to perform an assignment that requires advocating on the client’s behalf?
No, advocating the cause or interest of any party is not permitted in appraisal practice.
Ray sometimes makes adjustments in his appraisals based soley on the type of ppl living in the residential location of the appraised property. Is this practice ethical?
No, an appraiser must not base their opinion of value in whole or in part on race, color, religion, national origin, sex, disability, or familial status.
Fred has appraised a property in a rural location, but the mortgage broker involved in the assignment has asked him to restate the location as suburban in the appraisal report. If Fred complies with the request, does this violate USPAP?
Yes, the appraiser must not use or comm a report with the intent to mislead or to defraud
An appraiser performed an appraisal on a property involving a partial acquisition for a state highway project. Two yrs later the property owner asked the appraiser to perform an appraisal for a tax appeal. What obligation does the appraiser have in the latest appraisal?
Disclose that the appraiser appraised the property within the prior three yrs.
An appraiser realizes after arriving at a propert for an appraisal assignment that she previously performed a brokerage service involving the property
Disclose to the client the prior service that she performed.
Is it appropriate for an appraiser to ignore the prior services disclosure in the ETHICS RULE Conduct section if the appraiser has not provided any services at the subject prop in the prior 3 yrs?
No, the appraiser must disclose even if no prior services have been provided in the last 3 yrs.
Module 4: Conduct Section
An appraiser provided a new client with hard-to-get tickets to a sporting event in order to ensure she would be selected to receive a specific assignment. When preparing the appraisal report, what disclosure obligation does the appraiser have?
Disclose that a thing of value was provided to the client in connection witht the procurement of the assignment.
Module 4: Management section
An appraiser agrees to perform an assignment in which the appraisal fee is subject to a financial institution closing the loan. USPAP identifies this type of compensation arrangement as a contingency based on
the attainment of a stipulated event.
Module 4: Management section
An appraiser has paid a refererral fee in connection w/ the procurement of an assignment. What section of the ETHICS RULE addresses this issue?
Management
Module 4: Management section
An appraiser has agreed to perform an appraisal review assignment in a litigation case. The appraiser has agreed to a fee based on an hourly rate. Is this fee arrangment acceptable practice under USPAP?
It is acceptable to charge by the hour.
Harvey finished an urgent assignment for a client and left the next day for an extended vacation. Before the appraisal report went in the mail, Harvey’s business partner contacted him to say that he forgot to sign the report. To avoid delays for the client, what can Harvey do that is acceptable practice under USPAP?
Authorize his business partner to sign the appraisal report for him.
What is significant about employees, co-workers, and sub-contractors that have access to an appraiser’s confidential info or assignment results?
The appraiser must ensure they are aware of the prohibitions on disclosure of such info or results.
What can an appraiser do to ensure that the client’s confidential info and assignment results are properly safeguarded?
All of these answers are correct.
* The appraiser can use aggregation to address the confidential elements.
* The appraiser can redact the confidential elements.
* The appraiser can obtain client authorization in regard to the confiential elements.
Confidential info as addressed in USPAP is info the appraiser receives from
the client, is identified by the client as confidential, and is not available from other sources.
To whom should the appraiser not disclose confidential info?
persons not specifically authorized by the client
How long must an appraiser retain the workfile for an assignment in which the appraiser testified in court?
A period of at least 5 yrs after prep or at least 2 yrs after final disposition of any judicial proceeding in which the appraiser provided testimony related to the assignment, whichever period expires last
At what point in the assignment must an appraiser create the workfile?
A workfile must be in existence prior to the issuance of any report or other comm of assignment results.
What item in the appraiser’s workfile must have a signature?
Appraiser’s certification
Ben used to work for Acme Appraisals and Chief Appraiser Alice retains his workfiles in her office. Ben requested copies of several workfiles from Alice for submission to a professional peer review committee. What USPAP obligation does Chief Appraiser Alice have?
Alice must allow Ben to retrieve a copy of the requested workfiles.
An appraiser is asked to perform an assignment for which he immediately identifies himself as lacking the knowledge and experience to complete the assignment competently. According to the COMPETENCY RULE, at what point must the appraiser disclose this to the client?
before agreeing to perform the assignment
A longtime client asked an appraiser to perform an appraisal of a contaminated industrial site. The appraiser realizes after reviewing the assignments reqs that she lacks the knowledge and is unwilling to satisfy the steps necessary to complete the assignment competently. What are the appraiser’s obligations under USPAP?
Decline the assignment.
An appraiser is asked to perform an assignment in an unfamiliar geographic area. If the appraiser agrees to perform the assignment, what can the appraiser do to satisfy the COMPETENCY RULE?
Collaborate w/ an appraiser who does possess the requsite competency and satisfy the competency req by completion of the assignment.
An appraiser has received an appraisal assignment from a financial institution that maintains its appraisal policy in accordance to Fannie Mae’s Selling Guide. The appraiser has no experience or knowledge specific to the subject property’s geographic location. What obligations does the appraiser have in this situation?
Decline the assignment.
Module 4: COMPETENCY RULE - Video Case Study
At what point must the appraiser have the requisite knowledge and experience to satisfy the COMPETENCY RULE in a specific assignment?
by completion of the assignment
