Is it true that an appraiser has the professional responsibility to identify the capacity in which he is performing?

An appraiser indeed holds a professional responsibility to clearly identify the capacity in which he or she is performing. This involves understanding and communicating the specific role being taken, whether it is as an independent appraiser, a consultant, or in any other capacity. This is crucial for several reasons, including ensuring transparency for clients and other stakeholders, maintaining ethical standards, and providing clarity regarding the appraiser’s qualifications and the scope of the assignment. By explicitly identifying the capacity, the appraiser helps to set appropriate expectations and reduces the risk of misunderstandings or potential conflicts of interest.

Understanding the role also influences how the appraiser approaches the work, the methodologies employed, and the types of reports or outcomes produced. Therefore, the correct identification of capacity is fundamental to the integrity and professionalism of the appraisal process.