Ethics in Real Estate Appraisal: Theory & Practice

Instructor: Traci Cull
Appraisers not only have rules of law to follow in their practice, as there are also ethical considerations that they must abide by. We will discuss some of those and how they apply.

Appraiser Guidelines

Let's talk about Jim. Jim is a licensed real estate appraiser and therefore must comply with various real estate laws for the state in which he is licensed. He also has a code of ethics that he must follow. We will be learning about that in this lesson.

Requirements to become an appraiser have become more stringent, and as a profession there are now ethical guidelines to follow in addition to the state laws. Appraisers are now viewed as professionals who have specialized knowledge and abilities, as well as required education. There are duties that go along with being an appraiser, such as having a duty of confidentiality to their client, whether it be a lender or an individual. A duty of confidentiality would mean they could not share any personal information about the client with anyone. They also have a duty of numerical accuracy, to maintain a certain level of competency and education, and must carry themselves as a professional in all aspects of their work.

Code of Ethics

A code of ethics is basically a written code of conduct that lays out the principles and values that members of a particular group should follow. The National Association of Realtors (NAR) has a code of ethics that they have adopted that also applies to appraisers. Their code of ethics describes the type of behavior expected of real estate professionals.

There are many ethical duties laid out in the NAR code of ethics, such as:

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