Appraisal Standards and Ethics Flashcards
7 cards from real CAA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Appraisal Standards and Ethics flashcards as text
An appraiser assumes the odometer reading is accurate but cannot verify it, and if false, the value conclusion would change. This is an example of:
Answer: An extraordinary assumption
An extraordinary assumption is an assignment-specific assumption about uncertain information which, if found false, could alter the opinions or conclusions.
What is the key difference between an Appraisal Report and a Restricted Appraisal Report under USPAP?
Answer: A Restricted report is intended only for the client and other named users, with less detail summarized
A Restricted Appraisal Report is for use where intended users are limited to the client and named users and may state information more concisely.
An appraiser previously appraised a truck for the owner and is now hired by the insurer on the same claim without disclosing it. Which rule is primarily violated?
Answer: Ethics Rule
Failing to disclose prior services on the subject property is a breach of the conduct obligations in the Ethics Rule.
Which of these is an acceptable basis for an appraiser's fee arrangement on a diminished value claim?
Answer: A flat fee agreed before the inspection
A flat fee is independent of the value conclusion, while percentage or success-based fees tie compensation to the result.
USPAP's Ethics Rule addresses discrimination by prohibiting the appraiser from:
Answer: Relying on unsupported conclusions based on characteristics such as race, religion, or national origin of the owner
Appraisers must not develop or report opinions based on bias or protected characteristics, and must comply with applicable antidiscrimination laws.
An appraiser advertises 'Guaranteed highest value for your total loss claim.' Why is this problematic?
Answer: It implies advocacy and a predetermined result, which is misleading
USPAP prohibits advertising that is false, misleading, or exaggerated, and appraisers must not act as advocates for a value.
Which item is NOT required in an appraisal workfile under USPAP?
Answer: The appraiser's personal tax returns
The workfile must hold client and user identity, report copies, and supporting data, but personal tax documents are irrelevant.