Professional Ethics & Standards Flashcards

A BCA appraiser is hired by opposing counsel in a litigation matter. Which disclosure obligation applies?

Answer: The appraiser must disclose the litigation context in the report

USPAP and BCA standards require disclosure of the intended use and client identity, including litigation contexts, in the appraisal report.

Which of the following fee arrangements is considered ethical under BCA standards?

Answer: A flat fee regardless of the final value conclusion

Flat or hourly fees are ethical; contingency fees tied to the value conclusion compromise appraiser independence.

The duty of confidentiality in business appraisal means an appraiser may NOT:

Answer: Share client information with a competitor without consent

Confidential client information cannot be disclosed to third parties, including competitors, without the client's consent.

When a BCA appraiser updates a prior appraisal, the update must:

Answer: Be treated as a new assignment with full compliance with current standards

An update is a new appraisal assignment and must comply with current standards, including a new certification and effective date.

A BCA appraiser who also serves as a business broker for the same transaction is:

Answer: Never permitted regardless of consent

Serving simultaneously as appraiser and broker on the same transaction creates an irreconcilable conflict of interest.

Under BCA ethical standards, the appraiser's certification must include a statement that:

Answer: The appraiser has no undisclosed material interests in the subject

The certification must affirm that the appraiser has no undisclosed material interest and that the opinion is unbiased.

Which scenario best illustrates a violation of the BCA's 'scope of work' standards?

Answer: Omitting a material valuation approach without explanation

Omitting a relevant approach without explaining why it was excluded violates the scope of work rule requiring sufficient analysis.