What must an appraiser do if asked to appraise a property in which he owns stock?

What must an appraiser do if asked to appraise a property in which he owns stock?

• A. Refuse the assignment
• B. Accept the assignment and disclose his interest
• C. Seek permission from the corporation
• D. Appraise the property without disclosing interest

Answer: (B)

An appraiser must accept the assignment and disclose their interest in a property if they own stock in the entity that owns the property. This is crucial to maintain ethical standards and transparency in the appraisal profession. Disclosure is necessary because having a financial interest can influence the appraiser's opinion of value, potentially leading to a conflict of interest. By informing all parties involved about this interest, the appraiser upholds the integrity of the appraisal process and complies with professional standards and guidelines. This practice protects the interests of clients and stakeholders and ensures that the appraiser's findings are objective and credible. Failure to disclose such an interest could lead to serious ethical violations, undermining the trust that clients and the public place in the appraisal profession. Thus, making the disclosure aligns with both legal requirements and ethical responsibilities in real estate appraisal.

An appraiser must accept the assignment and disclose their interest in a property if they own stock in the entity that owns the property. This is crucial to maintain ethical standards and transparency in the appraisal profession. Disclosure is necessary because having a financial interest can influence the appraiser's opinion of value, potentially leading to a conflict of interest. By informing all parties involved about this interest, the appraiser upholds the integrity of the appraisal process and complies with professional standards and guidelines. This practice protects the interests of clients and stakeholders and ensures that the appraiser's findings are objective and credible.

Failure to disclose such an interest could lead to serious ethical violations, undermining the trust that clients and the public place in the appraisal profession. Thus, making the disclosure aligns with both legal requirements and ethical responsibilities in real estate appraisal.