What should a reviewer do if they identify conflicts of interest in an appraisal?

A reviewer identifying conflicts of interest in an appraisal bears a significant responsibility to ensure the integrity of the appraisal process. Reporting the conflict to the client immediately is crucial as it upholds ethical standards and transparency in the appraisal process. Clients rely on reviewers to provide honest assessments of appraisals, and any conflicts could potentially influence the appraiser's objectivity and the outcome of the appraisal.

By notifying the client, the reviewer enables informed decision-making regarding the appraisal and allows the client to assess whether they wish to proceed with the appraisal despite the conflict or seek alternative arrangements. Addressing conflicts of interest actively reinforces the trustworthiness of the appraisal profession and protects all parties involved from potential liabilities or disputes that may arise from undisclosed biases.

Engaging with the other options sheds light on why they may not be the best approach. Ignoring personal biases isn't a responsible action, as it allows potential skewing of the appraisal results. Discussing the conflict with the appraiser could potentially compromise the review's impartiality and could seem like an attempt to mediate a situation instead of elevating it to the client's attention. Seeking legal advice might be necessary in some cases, but immediate communication with the client is the most appropriate first step to uphold the integrity of the appraisal.