Professional Ethics and Accreditation Requirements
Ethics and the credential
Ethical practice in appraisal review rests on independence, objectivity, and impartiality. The reviewer must have no financial or personal interest in the outcome and must disclose any prior involvement with the property or the original appraiser. The ethics rule prohibits accepting an assignment contingent on a predetermined result, misrepresenting credentials, and using confidential information improperly. Candidates should understand the competency rule - a reviewer must have the knowledge and experience for the assignment or disclose the deficiency and take steps to become competent.
Concepts to master
- Independence and disclosure of conflicts of interest.
- Contingency fees tied to a value outcome are prohibited.
- Confidentiality: client information is not disclosed without authorization or legal requirement.
- Competency and the duty to decline or disclose.
- Accreditation: understanding the professional organization's code of ethics, continuing education, and the reviewer's obligations to peers and the public.
Traps
Questions often present a reviewer offered a bonus for a "favorable" review - the correct answer is to decline. Another trap: a reviewer who is competent in one property type but accepts a specialized assignment without disclosure. Watch for confidentiality questions where disclosure is legally compelled versus merely convenient.
Rule of thumb
Ask: "Would I be comfortable if my fee arrangement and prior relationships were disclosed in the report?" If not, there is an ethics problem to resolve before accepting.