A Colorado appraiser who has a personal relationship with the lender who ordered the appraisal, which could influence their judgment, must:
Why B. Decline the assignment if the relationship compromises their independence, or disclose and manage the conflict per USPAP if they can still provide an independent opinion Is Correct
Answer B: B. Decline the assignment if the relationship compromises their independence, or disclose and manage the conflict per USPAP if they can still provide an independent opinion
Exam Tip: Property Valuation
Valuation questions focus on the three approaches to value: sales comparison, cost, and income. Know which approach is best for which property type. The income approach uses cap rate and NOI — memorize these formulas.
Key Property Valuation Terms in This Question
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Key Terms to Know
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
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