Can an appraiser accept an appraisal assignment with a fee contingent upon the loan closing, according to USPAP?

The correct response highlights that appraisers must adhere to ethical standards and guidelines set forth by the Uniform Standards of Professional Appraisal Practice (USPAP). Accepting a fee that is contingent upon the closing of a loan creates a conflict of interest and undermines the objectivity and integrity of the appraisal process. Such arrangements can lead to biased valuations, as the appraiser may feel pressured to produce an outcome favorable to the client to ensure payment.

Therefore, USPAP explicitly prohibits any form of compensation that is contingent upon a predetermined outcome, reinforcing the necessity for appraisers to provide impartial and unbiased opinions regardless of financial ties. By insisting on these ethical practices, USPAP aims to maintain the trustworthiness of the appraisal profession and the reliability of its results.