Certified Residential Appraiser Practice Exam

What does the Ethics Rule establish for appraisers?

1. Valuation methods for different properties

2. General ethical requirements

3. Specific reporting standards

4. Guidelines on record keeping

The correct answer is: General ethical requirements

The Ethics Rule establishes general ethical requirements that appraisers must adhere to in their professional practice. This rule is a fundamental component of the appraiser's code of conduct, setting forth principles of integrity, impartiality, objectivity, and ethical behavior. These requirements are designed to promote public trust and confidence in the appraisal profession, ensuring that appraisers conduct their work honestly and transparently. By adhering to the Ethics Rule, appraisers demonstrate their commitment to ethical decision-making and professionalism, which is essential for maintaining the credibility of the appraisal process. This rule encompasses various aspects of ethical practice, including conflicts of interest, confidentiality of client information, and the necessity of providing unbiased opinions of value. Valuation methods, specific reporting standards, and guidelines on record-keeping, while important aspects of the appraisal process, do not fall under the Ethics Rule. These elements are typically governed by other principles, guidelines, regulations, or standards established by various organizations and institutions relevant to the appraisal profession.