Property Valuation
An NC appraiser who over-values a property to help a borrower qualify for a loan has committed:
AA helpful professional service
BAppraisal fraud — a serious violation of USPAP, federal law, and NC licensing requirements✓ Correct
CAn acceptable industry practice
DA violation only of the lender's guidelines
Explanation
Intentionally over-valuing a property (inflated appraisal) to facilitate loan approval is appraisal fraud — a federal felony, a USPAP violation, and grounds for license revocation.
Related North Carolina Property Valuation Questions
- An appraiser who adjusts a comparable's price upward by $5,000 for having one fewer bathroom than the subject property is applying which step of the sales comparison approach?
- When an appraiser in NC notes that a home has an 'addition' that was built without permits, this is most relevant to which form of depreciation?
- The 'assemblage' of multiple smaller parcels into one larger parcel may create 'plottage value' because:
- The sales comparison approach to value relies primarily on:
- When a NC appraiser uses a market extraction method to determine a capitalization rate, they analyze:
- When appraising a property in the Outer Banks near the NC coast, an appraiser would consider 'functional utility' which includes:
- A 'fee appraiser' in NC is different from an 'in-house' appraiser in that a fee appraiser:
- An adjustment in the sales comparison approach for a feature the subject property HAS but the comparable does NOT have requires the appraiser to:
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