What constitutes a violation if demographic information related to race or ethnicity is used in an appraisal?

Using demographic information related to race or ethnicity in an appraisal constitutes a violation of the Uniform Standards of Professional Appraisal Practice (USPAP) because it contradicts the principle of objectivity and fairness essential to the appraisal process. USPAP emphasizes that appraisals must be based on relevant, factual, and applicable data that pertain strictly to the property being valued and the market in which it exists. Integrating demographic factors that pertain to race or ethnicity can lead to discriminatory practices and bias, undermining the integrity of the appraisal and contravening the ethical obligations outlined in USPAP.

This kind of information can influence the judgment and conclusions of the appraiser inappropriately, which goes against the standards that seek to ensure fairness and impartiality in appraisals. Therefore, using such demographic data not only violates USPAP but can also have broader legal implications under fair housing laws, highlighting the importance of adhering strictly to these professional standards.