Property Valuation
A Maine bank orders an appraisal for a $350,000 mortgage. The appraiser's fee is $600. Under USPAP, the fee:
AMay be based on a percentage of the loan amount
BMust be a flat fee not contingent on the appraised value✓ Correct
CCan be reduced if the appraised value is lower than expected
DIs set by the Maine Real Estate Commission
Explanation
USPAP prohibits appraisal fees that are contingent on the appraised value or the result of the appraisal. Fees must be agreed upon in advance and not tied to the outcome.
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