Is it true that appraisers are expected to be aware of all laws and regulations applicable to an assignment?

• A. True
• B. False
• C. Only for federal laws
• D. Only for state laws

Answer: (A)

Appraisers must be aware of all laws and regulations applicable to an assignment. This includes federal, state, and local statutes, licensing and credentialing requirements, industry regulations, and any rules that govern how valuations are prepared and reported. USPAP requires appraisers to comply with applicable laws and regulations, not just with USPAP itself. Being knowledgeable about these requirements helps ensure the appraisal is legal, credible, and defensible, and it prompts the appraiser to seek guidance when a regulation is unclear. Therefore, the statement is true. It isn’t limited to federal or state law; local laws and other regulatory rules can also apply depending on the assignment.