What is the difference between ethics and competency under USPAP?

What is the difference between ethics and competency under USPAP?

• A. Ethics relates to client marketing; competency relates to fieldwork.
• B. Ethics governs professional conduct; competency requires the appraiser to be qualified and capable.
• C. Ethics is about legal compliance; competency is about ethical behavior.
• D. Ethics concerns fees; competency concerns information gathering.

Answer: (B)

The main idea being tested is the difference between how an appraiser should behave versus what they must be able to do. In USPAP, ethics refers to professional conduct—honesty, integrity, objectivity, avoiding conflicts of interest, confidentiality, and proper disclosure. It’s about how you act and relate to clients and the public. Competency, on the other hand, is about having the necessary knowledge, experience, and ability to perform the assignment correctly and within the scope of your qualifications. If you’re not competent for a particular type of assignment or area, you’re expected to gain the necessary knowledge or decline the assignment. That’s why the best answer states that ethics governs professional conduct and competency requires the appraiser to be qualified and capable. The other options mix up the focus—ethics isn’t primarily about marketing or legal compliance, and competency isn’t limited to fieldwork or merely information gathering.

The main idea being tested is the difference between how an appraiser should behave versus what they must be able to do. In USPAP, ethics refers to professional conduct—honesty, integrity, objectivity, avoiding conflicts of interest, confidentiality, and proper disclosure. It’s about how you act and relate to clients and the public. Competency, on the other hand, is about having the necessary knowledge, experience, and ability to perform the assignment correctly and within the scope of your qualifications. If you’re not competent for a particular type of assignment or area, you’re expected to gain the necessary knowledge or decline the assignment.

That’s why the best answer states that ethics governs professional conduct and competency requires the appraiser to be qualified and capable. The other options mix up the focus—ethics isn’t primarily about marketing or legal compliance, and competency isn’t limited to fieldwork or merely information gathering.