Which would be considered an example of a jurisdictional exception in an appraisal assignment?

• A. A probate court paying appraisers based on the value of the subject property
• B. A private party paying based on hours worked
• C. A lender paying based on the list price of the property
• D. An owner paying a flat fee regardless of value

Answer: (A)

In USPAP, a jurisdictional exception happens when a law or public policy in a particular jurisdiction requires or allows a fee arrangement that could affect the appraiser’s independence or objectivity. Paying appraisers based on the value of the subject property fits this idea because the fee becomes contingent on the appraisal outcome, which can bias the judgment and is driven by a legal body’s rules rather than standard professional practice. The probate court scenario shows this: the payment is tied directly to the property’s value, creating a potential conflict of interest that takes the arrangement outside typical, unbiased fee structures. The other payment methods—by hours worked, based on the list price, or a flat fee—do not tie compensation to the appraisal result and therefore don’t illustrate a jurisdictional exception in the same sense. When such an exception exists, independence and transparency in the report are essential, with appropriate disclosure of the constraints.