Which statement best describes the word 'competency' as it relates to appraisal practice?

• A. It is fundamental to the definition of 'appraiser'
• B. It has no bearing on the appraisal process
• C. It only affects appraisals for litigation
• D. It determines the appraiser's ethical obligations

Answer: (A)

Competency in appraisal practice means you have the necessary knowledge, experience, and ability to perform the assignment in a credible, professional manner. This is essential because USPAP expects an appraiser to undertake only those assignments for which they are competent; if not, the proper course is to decline or to gain the needed competence before proceeding. That’s why this statement fits best: being competent is foundational to who can be an appraiser and to the integrity of the work produced.

The other ideas aren’t accurate because competence applies to all assignments, not just litigation, and while ethical obligations are connected to responsible practice, competence isn’t just about ethics—it’s about having the ability to deliver credible results.