Professional Ethics, Standards, and Accreditation
Standards and ethics for the ARA
Candidates must know the Uniform Standards of Professional Appraisal Practice (USPAP) as it applies to rural and agricultural assignments, including the ethics rule, competency rule, and record-keeping requirements. The ARA credential is administered by ASFMRA, which sets continuing education and code of ethics requirements. Understand the scope of work concept, the difference between complete and limited-use appraisals, and the requirement to disclose assumptions and limiting conditions.
Ethics concepts and traps
Key ethical duties include impartiality, objectivity, confidentiality, and independence. Traps often involve a client pressuring an appraiser to hit a target value, contingent fees, or accepting an assignment outside one's competence. Remember that contingent compensation based on a predetermined value is prohibited. Questions may test whether an appraiser may appraise a property in which they have an interest (generally no, without disclosure and safeguards) or whether an unlicensed assistant may sign a report (no). Understand that the appraiser must not misrepresent the scope of work or omit material facts.
Rule of thumb
Ask three questions before accepting: Am I competent? Am I independent? Is the fee contingent on the result? If any answer is unfavorable, decline or disclose.
Worked example
A client offers a bonus if the appraisal reaches $2 million. This is a contingent fee tied to a value conclusion and violates ethics rules; the appraiser must decline the bonus and disclose the arrangement. If the assignment exceeds the appraiser's competence, the appraiser must decline or associate with a qualified appraiser and disclose.