Certified Residential Appraiser Practice Exam

What could trigger the requirement for USPAP compliance in an appraisal assignment?

1. Client's personal preference

2. Appraiser's professional experience

3. Law, regulation, or agreement with the client

4. Market demand influenced by clients

The correct answer is: Law, regulation, or agreement with the client

The requirement for compliance with the Uniform Standards of Professional Appraisal Practice (USPAP) in an appraisal assignment is primarily triggered by law, regulation, or an agreement with the client. USPAP serves as the foundation for ethical practices and competency standards in the appraisal profession, ensuring that appraisers perform their work with integrity and in accordance with applicable laws and regulations. When an appraiser is engaged in an assignment that is governed by local, state, or federal laws — such as when conducting appraisals for federally related transactions — adherence to USPAP is not just a best practice but a legal requirement. Additionally, if there is an agreement between the appraiser and the client stipulating that the appraisal report must conform to USPAP standards, compliance becomes mandatory in that context. Personal preferences of a client or the appraiser's own experience do not inherently create a requirement for USPAP compliance. While market demand can influence how appraisers conduct business, it does not impose the formal standards that USPAP prescribes. Therefore, the most applicable trigger for USPAP compliance in a given appraisal assignment is the presence of governing laws, regulations, or specific agreements with the client.