An example of unlawful practice in appraising would be an appraisal that improperly takes into consideration a person's ______ in estimating value.

• A. Disability
• B. Protected status
• C. Age
• D. Income

Answer: (B)

Discrimination in appraisal based on a person’s protected status is prohibited. The key idea is that appraisal values must be driven by property characteristics, comparable sales, and market data—not by who the person is. Protected status covers classes protected by fair housing law (such as disability, age, race, color, national origin, religion, and familial status). Choosing the umbrella term protects against any bias tied to those characteristics, which is why it’s the best answer.

Disability or age are themselves protected characteristics, so they would also be unlawful factors to consider, but the broader category of protected status correctly captures all such impermissible considerations. Income isn’t a protected class under the Fair Housing Act, and while underwriting factors may involve income, appraisal practice should not be biased by a borrower’s personal attributes.