Which fee arrangement would be considered a violation of the ETHICS RULE in USPAP?

In the context of the ETHICS RULE in the Uniform Standards of Professional Appraisal Practice (USPAP), a fee structure providing a bonus if the value exceeds a certain limit is problematic because it creates a conflict of interest. This type of arrangement can compromise the objectivity and impartiality of the appraiser's work. When an appraiser stands to benefit financially from reaching a particular value, it may influence their judgment and the integrity of the appraisal process. The USPAP emphasizes that appraisers must perform their duties with independence and impartiality, ensuring that their valuation is based solely on data, market analysis, and ethical considerations, rather than financial incentives linked to the outcome.

On the other hand, charging a separate fee for a written report after an oral report or a fee based on an hourly rate with monthly billing does not necessarily violate the ETHICS RULE, as these arrangements do not inherently compromise the integrity of the appraisal process. They reflect common and acceptable practices in the industry as long as they are disclosed and agreed upon by all parties involved. Thus, the fee arrangement associated with providing a bonus based on valuation outcomes is considered a violation because it directly undermines the ethical obligations set forth in the USPAP.