Property Valuation
In Louisiana, an appraiser who has a financial interest in the outcome of a real estate transaction should:
AProceed but disclose the conflict in the certification
BDecline the assignment because the conflict of interest would compromise objectivity and violate USPAP ethics rules✓ Correct
CAccept if the fee is high enough to justify it
DOnly accept assignments from clients with no conflict
Explanation
USPAP's Ethics Rule prohibits appraisers from accepting assignments where their compensation or personal interest is contingent on the value conclusion, or where they have a financial interest in the property. Such conflicts must result in declining the assignment.
Related Louisiana Property Valuation Questions
- A Louisiana appraiser notes that a comparable sale was a foreclosure and the seller was highly motivated to sell at a discount. This sale would likely be:
- An appraiser makes a 'downward adjustment' to a comparable sale when the comparable property:
- In a declining Louisiana real estate market, which adjustment would an appraiser typically make to older comparable sales?
- What is 'functional obsolescence' in real estate appraisal?
- An appraiser performing a retrospective appraisal in Louisiana is estimating value as of:
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- In the income approach, 'potential gross income' differs from 'effective gross income' because:
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