National Association of Independent Fee Appraisers [NAIFA] is organized for a full and free interchange of ideas between appraisers whose responsibility to their clients is on a direct freely negotiated basis. It is organized so that the public when seeking an appraiser may obtain the service of a qualified Independent Fee Appraiser.
A member shall conduct himself/herself at all times in a manner beneficial to the Association and to the community.
No appraisal fees may be contingent upon the valuation of an appraisal. All fees for trial testimony must be determined prior to the trial. No fees may be split without the consent of all interested parties.
Each appraisal must contain the following items in addition to all pertinent information known to the appraiser at the time of the appraisal:
A. A statement as to purpose and/or objective of the appraisal, with value defined.
B. A legal description and/or adequate identification of the property appraised.
C. The date of the value estimate, the date at which the value estimate applies.
D. An adequate description of the physical characteristics of the property appraised.
E. A statement as to the known and/or observed encumbrances, if applicable.
F. A statement and analysis of the highest and best use of the property appraised, if appropriate.
G. A statement as to the property rights appraised.
H. A direct sales comparison approach and analysis, if applicable.
I. A cost approach and analysis, if applicable.
J. An income approach and analysis, if applicable.
K. A statement as to the conclusions reached in the appraisal report.
L. Documentation requirements [the appraiser must have the minimum data requirements in his/her file to properly support the final estimate of value].
M. A statement as to the assumption and limiting conditions affecting the appraisal.
N. The signature of the responsible appraiser together with his/her particular designation [IFA, IFAA, IFAS, IFAC].
O. A statement concerning the maintenance of confidentiality regarding the appraisal assignment and results thereof.
P. Designated members [IFA, IFAA, IFAS, IFAC] must disclose their continuing education status clearly in every appraisal report.
Appraisal reports must not include:
A. Improbable and non-supportable premises.
B. Vague assumptions unsupported by fact.
C. Improbable highest and best use.
The certification of each appraisal must contain the statement: "This appraisal has been prepared in conformity with the Code of Ethics of the National Association of Independent Fee Appraisers, and the Uniform Standards of Professional Appraisal Practice as promulgated by the Appraisal Foundation." On printed forms supplied or required by client, the appraiser is bound by the above code and certification even though the statement is not contained therein.
It is unethical for an appraiser to do the following:
A. Conduct himself/herself in any manner which will prejudice his/her professional status or the reputation of any appraisal organization with which he/she is connected.
B. Compete unfairly with other appraisers.
C. Injure by falsification or by malice, directly or indirectly, the professional reputation, prospects or business of any other appraiser.
D. Fail to report to the Association the actions of any member who, in the opinion of the reporting member, has violated this code of ethics.
E. Advertise or solicit appraisal business in any manner not consonant with accepted professional practice.
F. Reveal in any way the substance of any appraisal without permission of the client or due process of law.
G. Issue a separate appraisal report when another appraiser assigned to appraise the property has had a part in the formation of the opinion of value.
H. Issue an appraisal report on only a part of a whole property without stating that it is a fractional appraisal; and, as such, subject to use in a manner consistent with such limitations.
I. Accept an assignment to appraise a property of a type with which he/she has had no previous experience unless in making the appraisal, he/she associates himself/herself with an appraiser who has had experience with the type of property being appraised; or, makes full disclosure of the degree of his/her experience, background, and training to his/her client.
J. Appraise knowingly, a property which is subject to existing leases, encumbrances, or other specific factors without disclosing the effects thereof upon the value of the property.
K. Appraise property in which the appraiser has an interest without that interest being fully disclosed.
L. Contract for or accept compensation for appraisal or analysis services in the form of a commission, rebate, division of brokerage commissions, or any similar form.
M. Receive or pay any finders or referral fees.