Professional Standards & Ethics Flashcards
7 cards from real CAR practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Professional Standards & Ethics flashcards as text
Under USPAP, which situation would constitute a conflict of interest that a reviewer MUST disclose?
Answer: Reviewing an appraisal of a property the reviewer owns
USPAP's Ethics Rule requires reviewers to disclose any current or prospective interest in the property that is the subject of the appraisal being reviewed.
A review appraiser who completes an appraisal review without inspecting the subject property must:
Answer: Disclose this limitation in the review report
USPAP Standard 3 requires the reviewer to clearly disclose any limitations on the scope of work, including whether a property inspection was or was not performed.
Which of the following best describes the 'impartiality' requirement for appraisal reviewers under USPAP's Ethics Rule?
Answer: The reviewer must perform work free from bias and without accommodation of personal interests
Impartiality under USPAP's Ethics Rule means the reviewer must be unbiased and not allow personal interests or outside pressure to influence the review conclusion.
When a client pressures a review appraiser to 'find something wrong' with an appraisal to justify declining a loan, the reviewer should:
Answer: Decline the assignment if objectivity cannot be maintained
USPAP's Ethics Rule prohibits reviewers from performing assignments with a predetermined outcome; if client pressure compromises objectivity, the assignment must be declined.
According to USPAP, which record-keeping requirement applies to appraisal review work files?
Answer: Work files must be retained for at least 5 years after preparation or 2 years after final disposition, whichever is longer
USPAP's Record Keeping Rule requires appraisal review work files to be retained for at least five years after preparation or at least two years after final disposition of any judicial proceeding, whichever is longer.
A reviewer discovers mid-assignment that the original appraiser is a close personal friend. Under USPAP, the reviewer should:
Answer: Disclose the relationship to the client and withdraw if objectivity is impaired
USPAP requires disclosure of any personal interest or relationship that could impair impartiality, and withdrawal if the reviewer cannot remain objective.
Which conduct is explicitly prohibited by USPAP's Ethics Rule for appraisal reviewers?
Answer: Accepting an assignment with a contingent fee based on the review outcome
USPAP's Ethics Rule explicitly prohibits contingent fees where payment depends on the outcome of the review, as this creates an inherent conflict of interest.