Article 8

Code of Ethics

8.1 Professional Conduct

A member shall conduct himself/herself at all times in a manner beneficial to the Association and to the community. A member when engaged in appraisal practice shall practice in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP). The Uniform Standards of Professional Appraisal Practice (USPAP) is incorporated by reference into this Code of Ethics.

8.2 Fees

No appraisal fees may be contingent upon the valuation of an appraisal. All fees for trial testimony must be determined prior to the trial. No fees may be split without the full consent of all interested parties.

8.3 Appraisal Reports

Each appraisal must contain the following items in addition to all pertinent information known to the appraiser at the time of the appraisal:

1. A statement as to purpose and/or objectives of the appraisal, with value defined.
2. A legal description and/or adequate identification of the property appraised.
3. The date of the value estimate, the date at which the value estimate applies.
4. An adequate description of the physical characteristics of the property appraised.
5. A statement as to the known and/or observed encumbrances, if applicable.
6. A statement and analysis of the highest and best use of the property appraised, if appropriate.
7. A statement as to the property rights appraised.
8. A direct sales comparison approach and analysis, if applicable.
9. A cost approach and analysis, if applicable.
10. An income approach and analysis, if applicable.
11. A statement as to the conclusions reached in the appraisal report.
12. Documentation requirements to properly support the final estimate of value.
13. A statement as to the assumption and limiting conditions affecting the appraisal.
14. The signature of the responsible appraiser together with his/her designation.
15. A statement concerning the maintenance of confidentiality regarding the assignment and results thereof.
16. Disclosure of continuing education status in every appraisal report by designated members.

8.4 Value Reports

Appraisal reports must not include:

1. Improbable and non supportable premises.
2. Vague assumptions unsupported by fact.
3. Improbable highest and best use.

8.5 Certification Statement

The certification of each appraisal must contain the statement: “This appraisal has been prepared in conformity with the code of ethics of the National Association of Independent Fee Appraisers, and the Uniform Standards of Professional Appraisal Practice as promulgated by the Appraisal Foundation.” On printed forms supplied or required by client, the appraiser is bound by the above code and certification even though the statement is not contained therein.

8.6 Professional Practice

It is unethical for an appraiser to do the following:

1. Conduct himself/herself in any manner which will prejudice professional status or the reputation of any appraisal organization with which he/she is connected.
2. Compete unfairly with other appraisers.
3. Injure by falsification or by malice, directly or indirectly, the professional reputation, prospects or business of any other appraiser.
4. Fail to report to the Association the actions of any member who has violated this code of ethics.
5. Advertise or solicit appraisal business in any manner not consonant with accepted professional practice.
6. Reveal in any way the substance of any appraisal without permission of the client or due process of law.
7. Issue a separate appraisal report when another appraiser assigned to appraise the property has had a part in the formation of the opinion of value.
8. Issue an appraisal report on only a part of a whole property without stating that it is a fractional appraisal.
9. Accept an assignment to appraise a property type without experience unless competent assistance is sought or full disclosure is made to the client.
10. Appraise knowingly a property that is subject to leases, encumbrances or other factors without disclosing the effects on value.
11. Appraise property in which the appraiser has an interest without that interest being fully disclosed.
12. Contract for or accept compensation in the form of a commission, rebate, division of brokerage commissions, or any similar form.
13. Receive or pay any finders or referral fees.

8.7 Conflict of Interest

1. Any member, director, or officer having a direct or indirect interest in any contract or transaction presented to the Association shall make full disclosure prior to acceptance.
2. Any member voting on a submitted matter who has a conflict of interest shall abstain from voting on that matter.
3. Any contract or transaction involving members with a conflict of interest shall be deemed approved if authorized members without a conflict approve it by majority vote.
4. Failure to comply with these terms may result in expulsion from the Association.