Can an appraiser accept an assignment with a fee paid contingent on the loan closing, according to USPAP?

According to USPAP (Uniform Standards of Professional Appraisal Practice), accepting a fee contingent upon the closing of a loan can create an ethical conflict that compromises the appraiser's independence and objectivity. The Ethics Rule emphasizes that appraisers must perform their work with impartiality, objectivity, and independence. Accepting a fee that is dependent on an outcome, such as the loan closing, can lead to a situation where the appraiser might be incentivized to produce a value that meets the client’s expectations or requirements rather than providing an unbiased professional opinion.

This scenario is not customary practice and can lead to a conflict of interest, potentially undermining the credibility and reliability of the appraisal. Consequently, the acceptance of such an arrangement does indeed breach the core ethical standards established in USPAP. Therefore, the conclusion that accepting a fee contingent upon the closing of a loan violates the Ethics Rule is accurate.