Certified Residential Appraiser Practice Exam

According to USPAP, is an appraiser required to disclose the amount of the fee paid for an assignment?

1. Yes

2. No

3. Only if requested

4. Only for residential properties

The correct answer is: No

The correct response indicates that an appraiser is not obligated to disclose the amount of the fee paid for an assignment according to the Uniform Standards of Professional Appraisal Practice (USPAP). This guideline is rooted in the principle of confidentiality and the appraiser's autonomy in their business practices. Under USPAP, the appraiser must maintain client confidentiality concerning the terms of the engagement, including fee arrangements. This protects both the appraiser's business interests and the privacy of the client, fostering a trustworthy and secure relationship. Disclosing fee amounts could lead to potential conflicts of interest or price competition among appraisers, which might undermine the quality of appraisal services. While an appraiser may choose to share this information if they wish, there is no mandatory requirement to do so unless it pertains to an agreement or specific requests put forth, which is why options suggesting that disclosure is necessary under certain conditions do not align with the principles of USPAP.