Why are ethical obligations included in USPAP?

Ethical obligations are included in the Uniform Standards of Professional Appraisal Practice (USPAP) primarily to prevent fraudulent appraisals. The framework of USPAP emphasizes the necessity for appraisers to adhere to high ethical standards to maintain public trust in the appraisal profession. By establishing guidelines that appraisers must follow, USPAP ensures that appraisals are conducted with honesty, integrity, and impartiality.

When appraisers are held to these ethical obligations, it mitigates the risk of fraudulent activities that can occur in the valuation process. This includes situations where appraisers might be tempted to manipulate data or outcomes to meet particular interests or pressures. The commitment to ethical behavior enhances the overall credibility of appraisals, protecting both the market and consumers who rely on accurate property valuations for decision-making.

The presence of ethical obligations also contributes to a standardized approach within the profession that not only helps to elevate the quality of appraisals but also supports fairness and accountability for appraisers. This is crucial in fostering a competitive yet ethical marketplace, as trust is essential for sustained professional relationships and the proper functioning of real estate transactions.