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Conflict of Interest
Reference: Rule and Appendix A
§ 24.102(n)
Requirements appraisers, review appraisers, waiver valuation preparers:
Shall not have any interest in property.
Shall not be subject to influence or coercion regarding valuation.
May be authorized to act as a negotiator where valuation role is for acquisitions <$10,000.
Notes:
Waiver valuation preparers and review appraisers are now specifically included in conflict of interest provisions.
Also added is the provision that these individuals be protected from inappropriate pressure in performing their valuation duties.
The new rule also raised the maximum limit amount for appraising/valuing and negotiating to $10,000.
The overall objective is to minimize the risk of fraud while allowing agencies to operate as efficiently as possible. This particular provision § 24.102(n)(2)is part of an emphasis in the new rule to assure the valuation process is not inappropriately influenced.
The use of an appraiser/value preparer to negotiate is not required but an option available to agencies. It does not require approval, but if adopted, it should be a standard policy and applied with consistency.
IMPLEMENTATION: As noted above, preparer of waiver valuation would need to certify of having no interest in the property under appraisal. Existing required certifications should suffice for appraisers and review appraisers.
To provide feedback, suggestions or comments for this page, contact Arnold Feldman arnold.feldman@fhwa.dot.gov
