Can an appraiser accept an assignment where the fee is contingent upon the loan closing?

The correct answer is that an appraiser cannot accept an assignment where the fee is contingent upon the loan closing because it violates the ethics rule established in the Uniform Standards of Professional Appraisal Practice (USPAP).

The fundamental principle at play here is that an appraiser must maintain independence and objectivity in their work. Accepting a fee contingent upon a particular outcome, such as a loan closing, creates a conflict of interest that can compromise the appraiser's ability to provide an unbiased opinion of value. This could lead to the appraiser being influenced either directly or indirectly in their valuation, undermining the integrity of the appraisal process and the trust that users place in it.

Maintaining ethical standards ensures that appraisers uphold the credibility of their profession, and this specific restriction aims to prevent any potential conflicts that could arise from financial incentives linked to the outcome of a transaction. This helps safeguard the trustworthiness of the appraisal process, which is essential for all parties involved in real estate transactions.