Uniform Standards of Professional Appraisal Practice (USPAP) Practice Exam

Can Marcus accept an assignment for a property he previously appraised?

1. No, it is a conflict of interest

2. Yes, without any disclosures

3. Yes, with proper disclosure to the client

4. No, he must wait for two years

The correct answer is: Yes, with proper disclosure to the client

Marcus can accept an assignment for a property he previously appraised, provided he properly discloses this information to the client. This practice aligns with the ethical standards outlined in the Uniform Standards of Professional Appraisal Practice (USPAP), which allows appraisers to undertake new assignments on properties they have previously appraised, as long as they adhere to appropriate disclosure requirements. When disclosing prior appraisals, Marcus ensures transparency and allows the client to make informed decisions regarding the assignment. This is important for maintaining professional integrity and trustworthiness within the appraisal profession. The disclosures help mitigate any potential concerns about bias or conflicts of interest that may arise from previous knowledge of the property. In contrast, simply stating that he can operate without disclosures would undermine the principles of transparency set forth in USPAP. Similarly, asserting that he cannot accept the assignment due to a conflict of interest ignores the possibility for properly managed disclosures. Lastly, the idea that he must wait two years to reassess a property is an unnecessary limitation that is not supported by USPAP guidelines. Proper disclosure is the key factor that ensures ethical compliance while allowing for the acceptance of prior assignments.