Property Valuation
In Alaska, an appraiser who inflates an appraisal at the lender's request to make a purchase transaction work is committing:
AA minor technical violation
BAppraisal fraud — which may violate federal and state law, USPAP, and licensing regulations✓ Correct
CA permissible accommodation to business needs
DAn error of professional judgment only
Explanation
Appraisal inflation to facilitate a transaction is appraisal fraud. It violates USPAP's requirements for independence and unbiased opinions, federal bank fraud laws, Financial Institutions Reform Recovery and Enforcement Act (FIRREA), and Alaska licensing regulations.
Related Alaska Property Valuation Questions
- Which of the following types of depreciation is generally considered incurable?
- In Alaska's remote areas, an appraiser may have difficulty using the sales comparison approach because:
- The appraisal principle of 'progression' suggests that:
- The cost approach is MOST reliable for which type of property?
- An Alaska property has a GPI of $150,000, a 5% vacancy rate, and operating expenses of $55,000. What is the NOI?
- External obsolescence in a property appraisal refers to depreciation caused by:
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- An Alaska appraiser is determining the value of a property in a remote area with no comparable sales. Which approach would likely be MOST useful?
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