USPAP Practice Exam 2026 – Comprehensive Test Prep

An appraiser must disclose their engagement by the lender as this is critical for ensuring transparency in the appraisal process. This type of disclosure helps to establish the relationship between the appraiser and the lender, as well as the potential influence this relationship could have on the appraisal's objectivity and impartiality.

According to USPAP, appraisers are required to disclose the existence of any potential conflicts of interest that could affect their work. When an appraiser is engaged by a lender, it is important to inform the borrower of this engagement to ensure that all parties understand who has commissioned the appraisal and the appraiser's obligation to provide an unbiased assessment of the property.

This disclosure is essential not only for compliance with ethical standards but also for maintaining trust in the appraisal process. By being transparent about their engagement, the appraiser contributes to a fair and equitable transaction and reassures the borrower that the appraisal will be conducted appropriately.