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7-hour National USPAP Exam (3 SETS) Questions with Answers,100% CORRECT
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7 Hour USPAP Exam 128 Questions with Answers,100% CORRECT
7 Hour USPAP Exam 128 Questions with Answers What is true about an appraiser's description of the physical characteristics of a property? a) The physic... [Show More] al chracteristics are treated as outside the appraisal practice b) The physical characteristics are not assignment results. c) The pyhsical characteristics must be verified with public records if the data is available through the normal course of business. d) The physical characteristics are confidential information. - CORRECT ANSWER b) The physical characteristics are not assignment results. Standards Rule 1-2 is labeled to identify what area of the appraisal process? a) Approaches to Value b) Market Analysis and Highest and Best Use c) General Development Requirements d) Problem Identification - CORRECT ANSWER d) Problem Identification An individual acting in the capacity of an appraiser is analyzing foreclosure rates in competing market areas. What USPAP Rule would defiitely NOT apply to this service? a) Competancy Rule b) Ethics Rule c) Scope of Work Rule d) Jurisdictional Exception Rule - CORRECT ANSWER C) Scope of Work Rule Which of the following would NOT be appropriate for an appraiser to issue a Restricted Appraisal Report? a) The other intended users cannot be named individually and need to be identified by type. b) The client (and, if applicable, named other intended users) do not need the level of information required in an Appraisal Report c) The intended use of the appraisal is appropriate for a report which may not contain supporting rationale for all of the opinions and conclusions set forth in the report. d) The client understands the limited utility of this reporting option. - CORRECT ANSWER a) The other intended users cannot be named individually and need to be identified by type. Appraisers make suggestions for changes to USPAP, but who else suggests changes? a) Members of the general public b) Government agencies c) All of these answers d) Users of appraisal services - CORRECT ANSWER c) All of these answers In the COMPETENCY RULE the phrase "prior to accepting an assignment" was changed to what revised wording in the 2020-2021 USPAP? a) prior to taking an assignment b) prior to procuring an assignment c) prior to agreeing to perform an assignment d) prior to receiving an assignment - CORRECT ANSWER c) prior to agreeing to perform an assignment Under what condition can an appraiser perform a desk review on an appraisal report for a property located in a different state? a) only when the appraiser is licensed or certified in the state where the property is located b) when the appraiser has the same or higher level of knowledge and experience than the appraiser who performed the appraisal that is now under review c) when the appraiser has the knowledge and experience to complete the assignment competently based on the assignment's scope of work d) under a hypothetical condition that he or she has the knowledge and experience to complete the review competently - CORRECT ANSWER c) when the appraiser has the knowledge and experience to complete the assignment competently based on the assignment's scope of work What is true when a party receives a copy of an Appraisal Report in order to satisfy disclosure requirements? a) The party becomes an intended user of the appraisal. b) The party does not become an intended user of the appraisal unless the appraiser has idenfified the party as an intended user. c) It creates a new assignment. d) The appriaser is obligated to add a supplement identifying the added party. - CORRECT ANSWER b) The party does not become an intended user of the appraisal unless the appraiser has idenfified the party as an intended user. How is the credibility of an appraiser's assignment results always measured? a) in the context of the intended use b) whether the appraiser is worthy of belief c) in cash or the equivalent of cash d) by the laws and regulations applicable to the assignment. - CORRECT ANSWER a) in the context of the intended use Under what conditions does USPAP permit an appraiser to use a Restricted Appraisal Report? a) when the appraiser has restricted the intended users to a specified group b) when the client is the only intended user; or, when additional intended users are identified by name c) when the client is the only indtended user; or, when additional intended users are identified by type d) when the client is the only intended user - CORRECT ANSWER b) when the client is the only intended user; or, when additional intended users are identified by name What is the ASB's position on the appraiser's obligation to disclose research and anaalyeses NOT performed in an appraisal assignment? a) The appraiser must disclose only the research and analyses performed in the assignment. b) The ASB has no position on this issue and gives the appraiser the flexibility to decide whether or not to disclose research and analyses not performed in an appraisal assignment. c) Whenever such disclosure is necessary for intended users to understand the report properly and not be misled and appraiser has an obligation to disclose. d) The appraiser must always disclose research and analyses not performed in an appraisal assignment regardless of client expectation. - CORRECT ANSWER c) Whenever such disclosure is necessary for intended users to understand the report properly and not be misled and appraiser has an obligation to disclose. An appraiser may use any combination of a property inspection, documents, such as a legal description, address, map reference, copy of a survey or map, proper;ty sketch, or photographs, or other information to identify a) relevant characteristics of the appraised property. b) support for adjustments in the sales comparison approach. c) scope of work for the assignment d) an extraordinary assumption used in the assignment. - CORRECT ANSWER a) relevant characteristics of the appraised property. What entity is continually working to develop, interpret and ament USPAP? a) Appraisal Subcommittee (ASC) b) Appraisal Qualifications Board (AQB) c) Board of Trustees of the Appraisal Foundation (BOT) d) Appraisal Standards Board (ASB) - CORRECT ANSWER d) Appraisal Standards Board (ASB) What is expressed when an appraiser addresses exposure time in an appraisal report? a) a prospective statement b) an estimate of fact c) an extraordinary assumption d) an opinion - CORRECT ANSWER d) an opinion The National Association of REALTORS is an Affiliate Sponsor of what organization? a) American Society of Appraisers b) National Association of Independent Fee Appraisers c) Appraisal Institute d) The Appraisal Foundation - CORRECT ANSWER d) The Appraisal Foundation The Uniform Standards of Professional Appraisal Practice (USPAP) receives its authority a) through implementation of its legislation requiring compliance to USPAP b) through adoption, citation, or implementation of USPAP by government agencies through regulation or administrative actions. c) by appraisers willing to comply with USPAP. d) by advertising USPAP's ethical rules and standards in trade journals. - CORRECT ANSWER b) through adoption, citation, or implementation of USPAP by government agencies through regulation or administrative actions. In the Exposure Draft process the ASB allows for public comment to take place over what time period? a) 30 days b) 10 days c) 90 days d) 45 days - CORRECT ANSWER a) 30 days Exclusive to the Restricted Appraisal Report option, what two reporting requirements must the appraiser clearly and conspicuously disclose? a) the appraisal techniques and appraisal methods employed b) the use restriction and the warning about supporting rationale c) extraordinary assumptions and hypothetical conditions d) the effective date of the appraisal and the date of the report - CORRECT ANSWER b) the use restriction and the warning about supporting rationale After submitting her report, the client asked the appraiser to perform additional work by adding several comparable sales. What action should the appraiser take? a) This request requires the appraiser to treat it as a new assignment. b) The appraiser must deny the request due to appraiser independence. c) Completing the request would bias the appraiser's assignment results. d) This is a scope of work issue and the appraiser can provide the additional sales. - CORRECT ANSWER d) This is a scope of work issue and the appraiser can provide the additional sales. An appraisal is based on a "what if" scenario. How does USPAP identify an assignment condition that is contrary to what exists? a) extraordinary assumption b) general assumption c) hypothetical condition d) conditional exemption - CORRECT ANSWER c) hypothetical condition Identify the statement that most acccurately describes the mission of The Appraisal Foundation. a) a member organization dedicated to appraisal ethics and standards b) an enforcement agency for appraisal ethics and standards c) a consortium of eight appriasal organizations d) a nonprofit privaate organization established for educational and scienfific purposes. - CORRECT ANSWER d) a nonprofit privaate organization established for educational and scienfific purposes. The Board of Trustees (BOT) of The Appraisal Foundation (TAF) has three primary functions. The first is to ensure that TAF is adequately funded and the second is to monitor the performance and oversight of TAF and its Boards and Advisory Councils. What is the other function? a) to establish appraiser qualification criteria for the states b) to lobby Congress on behalf of appraisers c) to develop and update USPAP d) to appoint members to the AQB and the ASB - CORRECT ANSWER d) to appoint members to the AQB and the ASB An entity that is a nonprofit organization with an interest in valuation, such as the National Association of REALTORS, is best identified as what type of sponsor of The Appraisal Foundation? a) Appraisal Sponsor b) International Sponsor c) Affiliate Sponsor d) Corporate Sponsor - CORRECT ANSWER c) Affiliate Sponsor In considering the components of USPAP, how does the Statement on Appraisal Standards fit in? a) The Statements are now considered as other communications by the ASB b) The Statements are one of the five component sections of USPAP, although there are no currently active Statements. c) The Statements are no longer part of USPAP d) Two new Statements on Appraisal Standards have been added to the 2020-2021 USPAP - CORRECT ANSWER b) The Statements are one of the five component sections of USPAP, although there are no currently active Statements. A unique partnership exists with The Appraisal Foundation and what other entities? a) FDIC and HUD b) TAF Sponsors and Councils c) AQB and ASB d) Appraisal Subcommittee (ASC) and state regulators - CORRECT ANSWER d) Appraisal Subcommittee (ASC) and state regulators Who is responsible for developing minimum criteria involving education and experience for state licensed and certified real property appraisers? a) the Board of Trustees (BOT) of The Appraisal Foundation b) the Appraisal Subcommittee (ASC) c) the Appraisal Standards Board (ASB) d) the Appraiser Qualifications Board (AQB) - CORRECT ANSWER d) the Appraiser Qualifications Board (AQB) Who is responsible for developing and revising the Uniform Standards of Professional Appraisal Practice (USPAP)? a) the Appraisal Standards Board (ASB) b) the Appraisal Qualifications Board (AQB) c) the Board of Trustees of the Appraisal Foundation (BOT) d) the Appraisal Subcommittee (ASC) - CORRECT ANSWER a) the Appraisal Standards Board (ASB) What do appraisal organizations, government agencies, client groups, work groups, appraisers, and members of the public have in common? a) They have the same agenda on valuation issues. b) They all may join as members of The Appraisal Foundation. c) They agree on the ethical standards for appraisers. d) They all may submit inquiries and concerns to the Appraisal Standards Board. - CORRECT ANSWER d) They all may submit inquiries and concerns to the Appraisal Standards Board. Identify one of the ways USPAP receives authority in various jurisdictions. a) TAF implements its own legislation requiring compliance to USPAP. b) USPAP is adopted, cited, or implemented by government agencies in regulation or administrative actions. c) TAF advertises the ethical rules and standards in trade journals. d) TAF requires its members to comply with USPAP - CORRECT ANSWER b) USPAP is adopted, cited, or implemented by government agencies in regulation or administrative actions. In addition to appraisers, who else provides suggestions on changes to USPAP? a) users of appraisal services b) all of these answers c) employees of government agencies d) TAF Sponsors and Advisory Councils - CORRECT ANSWER b) all of these answers If an issue arises during the exposure draft process that requires specialized expertise that the ASB Members may not possess, what option does the Board have? a) Must table the issue until the next USPAP cycle. b) Engage a Task Force or Working Group to review the issue. c) Invoke the COMPETENCY RULE and siclose in the exposure draft. d) Do the best they can with the knowledge and expertise on the board. - CORRECT ANSWER b) Engage a Task Force or Working Group to review the issue. What is the minimum number of days that the ASB permits for public comment on an Exposure Draft? a) There is no minimum b) 90 days c) 30 days d) 10 days - CORRECT ANSWER c) 30 days The word "rationale" is specific to what type of ASB communication? a) an Advisory Opinion b) an Exposure Draft c) an Official reprimand d) None of the listed answers - CORRECT ANSWER b) an Exposure Draft What specific ASB communication is released for public comment that includes all the proposed changes to USPAP? a) an Advisory Opinion b) an Exposure Draft c) an Appraisal Report d) a Statement on Standards - CORRECT ANSWER b) an Exposure Draft When reviewing comment letters received on Exposure Drafts, what does the ASB focus on? a) the source of the comment b) the reasoning and insight presented in the letter, rather than its source c) the frequency of the comment d) none of the answers - CORRECT ANSWER b) the reasoning and insight presented in the letter, rather than its source Intentionally of unintentionally misrepresenting, misstating, or concealing relevant facts or conclusions in an appraisal define what new USPAP term? a) gross negligence b) misleading c) fraud d) error of omission - CORRECT ANSWER b) misleading What does readily observable mean in USPAP's definition of Personal Inspection? a) Crawl spaces and attics are excluded. b) An interior inspection of the improvements is required c) It's limited to observations made without the use of special testing or equipment d) The appraiser must inspect 100% of the property. - CORRECT ANSWER c) It's limited to observations made without the use of special testing or equipment To avoid misleading communication, what must an appraiser's support include to ensure credible assignment results? a) statistical data b) all three approaches to value c) relevant evidence and logic d) certification and limiting conditions statement - CORRECT ANSWER c) relevant evidence and logic What physical characteristic stated in a residential appraisal report would be identified as assignment results? a) The carpet is new. b) The dwelling was constructed in 1997. c) The property site is well landscaped. d) The gross living area is 3,200 feet. - CORRECT ANSWER c) The property site is well landscaped. USPAP defines the appraiser's identification of the type and definition of value in the first step of the appraisal process with what term? a) Objective of the assignment b) Assignment condition c) Assignment element d) Purpose of the assignment - CORRECT ANSWER c) Assignment element The date to which an appraiser's analyses, opinions, and conclusions apply partially defines what term? a) date of the report b) date of submission to the client c) effective date d) signature date - CORRECT ANSWER c) effective date USPAP allows an appraiser to convey an opinion of highest and best use prior to transmitting an appraisal report: a) True b) False - CORRECT ANSWER a) True Which of the following are NOT considered to be assignment results? a) the appraiser's analysis and opinions of comparable listings for the subject property b) an opinion of the highest and best use of the subject c) all opinions and conclusions developed that are not appraisal or appraisal reveiw d) a description of the physical characteristics of the subject - CORRECT ANSWER d) a description of the physical characteristics of the subject A description of the physical characteristics of the appraised property: a) is not considered to be assignment results b) is considered to be outside of appraisal practice c) must be kept condidential in all assignments d) must be verified with public records if the data is available through the normal course of business. - CORRECT ANSWER a) is not considered to be assignment results Which of the following best describes the subject of an appraisal review assignment? a) real property, personal property or an intangible asset b) the appraiser of the work under review c) a report, part of a report, a workfile, or some combination of these d) a real estate interest - CORRECT ANSWER c) a report, part of a report, a workfile, or some combination of these According to the Confidentiality section of the ETHICS RULE, an appraiser must not disclose confidential information or ____________________________________________________ to anyone other than the five parties identified in the Rule. a) any information in the appraisal report b) the appraiser's value opinion or conclusion c) the review appraiser's value opinion d) assignment results - CORRECT ANSWER d) assignment results When must an appraiser comply with USPAP? a) when either the service or the appraiser is requuired by regulation b) all of these answers c) when wither the service or the appraiser is required by law d) when either the service or the appraiser is required by agreement with the client - CORRECT ANSWER b) all of these answers Which USPAP term best describes the act or process of developing an opinion about the quality of another appraiser's work that was performed as part of an appraisal or appraisal review assignment? a) valuation service b) appraisal review c) administrative review d) appraisal - CORRECT ANSWER b) appraisal review What change did the ASB make to the definition of "real property" in the 2020-2021 USPAP? a) The ASB added new content to the Comment clarifying the legal differences of real property from real estate. b) The ASB deleted the phrase "inherent in the ownership." c) The ASB deleted the Comment. d) The ASB added intangible assets to the definition. - CORRECT ANSWER c) The ASB deleted the Comment. The question of "what is reasonable exposure time?" should cause the appraiser to consider what other question? a) Is the market's 120-day forecast stable? b) For what kind of property at what value range? c) For what isolated period of time? d) What type and definition of value? - CORRECT ANSWER ) For what kind of property at what value range? What best describes an intangible article in a personal property appraisal assignment? a) copyrights b) plans for installation art c) machinery and equipment d) patents - CORRECT ANSWER b) plans for installation art What USPAP definition changed a key phrase from "estimate of fact" to "actual or estimated"? a) exposure time b) price c) cost d) value - CORRECT ANSWER c) cost What significant addition was included in the definition of personal property based on changes in the real world marketplace? a) tangible personal property b) real estate c) real property d) intangible personal property - CORRECT ANSWER d) intangible personal property Data, information, and documentation necessary to support the appraiser's opinions and conclusions and to show compliance with the USPAP best define what term? a) assignment results b) scope of work c) workfile d) certification - CORRECT ANSWER c) workfile What type of work as defined in ASPAP is performed by both appraisers and by others? a) valuation service b) appraisal review c) appraisal practice d) mass appraisal - CORRECT ANSWER a) valuation service Distinguish between physical charactaristics and assignment results: 1. Living area is 2,000 sf 2. Property is in good condition 3. The property has functional problems 4. The improvements were constructed in 2005. 5. The carpet is new. 6. 2nd floor has 2 bedrooms, no baths. 7. Well Landscaped 8. Poor floor plan 9. Carpet needs replacing. 10. Walls are painted pink, yellow, purple. - CORRECT ANSWER Assignment Results: 2,3,7,8 & 9 Physical characteristics: 1,4,5,6, & 10 Distinguish between physical characteristics and assignment results: 1. Building contains 10,316 sq ft 2. There is a low land to building ratio 3. The mechanicals are in fair condition 4. The hear/AC equipment is 30 years old 5. Parking acccess is poor 6. There is 2,000 SF of mazzanine office space 7. There are 4 parking spaces per 1,000 ft of office area 8. The warehouse ceiling height is 14 feet 9. The building has functional propblems. 10. The building is a Class A construction according to Marshall & Swift description. - CORRECT ANSWER Physical Characteristis: 1, 4, 6, 7, 8, 10 Assignment results: 2,3,5,9 Intentionally or unintentionally misrepresenting, misstating or concealing relevant facts or conclusions in an appraisal define what new USPAP term? a) fraud b) error of omission c) gross negligence d) misleading - CORRECT ANSWER d) misleading USPAP defines the appriaser's identification of the type and definition of value in the first step of the appraisal process with what term? a) assignment condition b) objective of the assignment c) purpose of the assignment d) assignment element - CORRECT ANSWER d) assignment element To avoid misleading communication, what must an appraiser's support include to ensure credible assignment results? a) all three approaches to value b) certification and limiting conditions statement c) statistical data d) relevent evidence and logic - CORRECT ANSWER d) relevent evidence and logic The date to which an appraiser's analyses, opinions and conclusions apply partially defines what USPAP term? a) date of the report b) date of submission to the client c) effective date d) signature date - CORRECT ANSWER c) effective date Which of the following best describes the subject of an appraisal review assignment? a) the appraiser of the work under review b) a real estate interest c) real property, personal property or an intangible asset d) a report, part of a report, a workfile, or some combination of these. - CORRECT ANSWER d) a report, part of a report, a workfile, or some combination of these. What change did the ASB make to the definition of "real property" in the 2020-2021 USPAP? a) The ASB deleted the Comment. b) The ASB deleted the phrase "inherent in ownership". c) The ASB added intangible assets to the definition. d) The ASB added new content to the Comment clarifying the legal differences of real property from real estate. - CORRECT ANSWER a) The ASB deleted the Comment. Which of the following best defines an appraiser? a) years of experience as a practicing appraiser b) professional appraiser designation c) state licensed or certified d) competent, independent, impartial and objective - CORRECT ANSWER d) competent, independent, impartial and objective An appraiser's initial planned scope of work was different from the scope of work that the appraiser disclosed in the appraisal report. Is this acceptable practice under USPAP? a) No, both the initial and the actual scope of work performed must be disclosed in the appraisal report. b) No, the scope of work cannot change after the assignment has been accepted. c) Yes, the initial scope of work is always different than the final scope of work. d) Yes, the appraiser must disclose the actual scope of work performed. - CORRECT ANSWER d) Yes, the appraiser must disclose the actual scope of work performed. In judging an appraiser's scope of work, how is the credibility of the appraiser's assignment always measured? a) whether the appraiser's experience is worthy of belief b) in cash or the equivalent of cash c) in the context of the intended use d) by the Standards Rules applicable to the assignment - CORRECT ANSWER c) in the context of the intended use A reviewer cited an infraction on an appraiser's nararative appraisal report because it did not include a heading "Scope of Work". The appraiser claims the reviewer erred on this point as the report did disclose the scope of work performed throughout the report. Who is right? a) The appraiser is right because there is no requirement for the scope of work description to be in a separate section of the appraisal report. b) The appraiser is right because there is no requirement to disclose the appraiser's scope of work. c) The reviewer is right because the appraisal report must include a specific "Scope of Work" section where it is disclosed. d) Both erred because the scope of work must be disclosed in the engagement contract: not the appraisal report. - CORRECT ANSWER a) The appraiser is right because there is no requirement for the scope of work description to be in a separate section of the appraisal report. After reading an appraiser's report, an administrative law judge, who was identified as an intended user of the report, was confused as to the extent of analysis performed in the appraisal. What error did the appraiser potentially commit in this instance? a) The scope of work must consider laws and regulations b) The appraiser did not commit an error in this instance. c) The appraisal report must contain enough information to allow the intended users to understand the scope of work the appraiser performed. d) The scope of work disclosed in the appraisal report must be the actual work performed. - CORRECT ANSWER c) The appraisal report must contain enough information to allow the intended users to understand the scope of work the appraiser performed. Name the five competency factors in which an appraisal reviewer must have familiarity, although competency is not limited to these 5 factors: - CORRECT ANSWER -Specific type of property or asset -Market -Geographic area -Analytic method -Applicable laws, regulations and guidelines. What chaange did the ASB make to the "perfection is i mpossible to attain" content in USPAP? a) deleted the content from the ETHICS RULE b) removed the content from the COMPETENCY RULE and placed it in the SCOPE OF WORK RULE c) moved the content from the reporting Standards to the new Advisory Opinion 38 d) moved the content from the development Standards to the COMPETENCY RULE - CORRECT ANSWER d) moved the content from the development Standards to the COMPETENCY RULE Why did the ASB revise the wording "prior to accepting an assignment" in the COMPETENCY RULE? a) required by the ASC for legal purposes of enforcement b) to replace the condusing language c) to make it clear that competency is required prior to accepting the assignment d) for consistency with the USPAP definition of assignment. - CORRECT ANSWER d) for consistency with the USPAP definition of assignment. At what point must the appraiaser have the necessary knowledge and experience to satisfy the COMPETENCY RULE in a specific assignment? a) no point in time is specified in the COMPETENCY RULE b) prior to agreeing to perform the assignment c) by completion of the assignment d) at the time the assignment contract is signed - CORRECT ANSWER c) by completion of the assignment What is not required to meet competency according to the COMPETENCY RULE? a) competency in a market b) competency that requires perfection c) competency in a specific type of property or asset d) competency in an analytical method - CORRECT ANSWER b) competency that requires perfection STANDARD 3 for appraisal reviews lists five coompetency factors isntead of the six idenfified in the COMPETENCY RULE. Which factor is absent for an appraisal review? a) specific type of property or asset b) geographic area c) intended use d) analytic method - CORRECT ANSWER c) intended use If an opinion of value is to be based on non-market financing, what must an appraiser do? a) Provide a cash equivalent alternative value. b) Not identify it as market value. c) Identify the terms of such financing and any influences on value. d) Identify the definition and source of the non-market financing. - CORRECT ANSWER c) Identify the terms of such financing and any influences on value. An assignment involves a proposed renovation and the appraiser's conclusion is based on a current value as if the renovation is already complete. What term best applies to this assignment condition that an appraiser mus identify under STANDARD 1? a) hypothetical condition b) jurisdictional exception c) general assumption d) extraordinary assumption - CORRECT ANSWER a) hypothetical condition Which assignment element in problem identification often can't be entirely determined prior to the appraiser agreeing to perform the assignment? a) identifying the effective date b) identifying the client and any other intended users c) identifying the assiginment condidtions d) identifying the subject and its relevant characteristics - CORRECT ANSWER d) identifying the subject and its relevant characteristics What content did the ASB change in Standards Rule 1-5 which covers sale agreements, options, listings, and prior sales? a) extended length of the reporting period to 5 years prior to the effective b) references to the reporting requirements in STANDARD 2 c) deleted the reference to market value so that it includes all value types d) no changes were made for the 2020-2021 USPAP for this Standards Rule - CORRECT ANSWER b) references to the reporting requirements in STANDARD 2 What two areas of the appraisal process are addressed in Standards Rule 1-2? a) approaches to value and reconciliation b) general development requirements and approaches to value c) problem identification and scope of work d) market analysis and highest and best use - CORRECT ANSWER c) problem identification and scope of work What report options are identified in Standard 2? a) Narratiave Appraisal Report and Form Appraisal Report b) Complete Appraisal Report and Summary Appraisal Report c) Appraisal Report and Restricted Appraisal Report d) General Appraisal REport and Residential Appraisal Report - CORRECT ANSWER c) Appraisal Report and Restricted Appraisal Report What is true about an appraiser who uses labels such as "evaluation" or "analysis" to identify the report type? a) such labels are no longer permitted under the 2020-2021 USPAP reporting requirements b) using such labels does not exempt an appriaser from adherence to USPAP's reporting c) the appraiser can only use such labels for a Restricted Appraisal Report d) such labels can be used in lieu of Appraisal Report and Restricted Appraisal Report. - CORRECT ANSWER b) using such labels does not exempt an appriaser from adherence to USPAP's reporting What change was made to the content addressing the 10 certification statements in Standards Rule 2-3 for the 2020-2021 USPAP? a) A certification statement on prior services was added b) The phrase "occurrence of a subsequent event" was removed. c) The wording "agreement to perform" was used in lieu of "acceptance" d) The term "conclict of interest" was changed to "bias". - CORRECT ANSWER c) The wording "agreement to perform" was used in lieu of "acceptance" How much information must an appraisal report contain? a) the maximum amount for an Appraisal Report b) enough to show the appraiser's competency in the development process c) the least amount for a Restricted Appraisal Report d) sufficient for the intended user(s) of the appraisal to understand the report properly - CORRECT ANSWER d) sufficient for the intended user(s) of the appraisal to understand the report properly What must an appraiser do when an assignment requires the use of a form with a certification that does not inlude all of the certification elements in Standards Rule 2 -3? a) The appraiser cannot agree to perform the assignment as this would constitute an unacceptable assignment condition. b) The appraiser provided a signed and dated certification supplement that states it supersedes the certification printed on the form. c) The appraiser must use the certification on the form as it is, since additions cannot be made. d) The appraisal report must contain a supplemental certification, which includes the remaining required certification elements. - CORRECT ANSWER d) The appraisal report must contain a supplemental certification, which includes the remaining required certification elements. An appraiser must analyze all current agreements of sale, options, and ______________________________ of the subject property as of the effective date of the appraisal. a) listings b) leases c) pending offers d) property inspection reports - CORRECT ANSWER a) listings [Show Less]
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7-Hr National USPAP Exam 90 Questions with Answers,100% CORRECT
7-Hr National USPAP Exam 90 Questions with Answers The ASB considers suggestions for changes to USPAP from: - CORRECT ANSWER Appraisers, users of appr... [Show More] aisal services, regulators, and others You have a suggestion for a change to USPAP, and you want to tell the ASB about it. When making your suggestion, it is helpful to the ASB if you: - CORRECT ANSWER Explain how the proposed change will enhance public trust in appraisal practice The ASB has received numerous public comment letters in response to an exposure draft. When considering these comments, the ASB's primary focus is: - CORRECT ANSWER The reasoning and insight presented in the letter The term "credible," as used in USPAP, refers to: - CORRECT ANSWER Appraisal development An appraisal reviewer uses the word "misleading" in relation to the work under review. Assuming the reviewer has used this term properly, the reviewer is referring to: - CORRECT ANSWER The report under review Assignment results in a real property appraisal assignment would include: - CORRECT ANSWER The highest and best use conclusion In a real property appraisal assignment, assignment conditions would NOT include: - CORRECT ANSWER Assignment due date The revision to the definition of Personal Property for 2020-21 was made for the purpose of: - CORRECT ANSWER Including items that are developed and stored electronically According to the definition of personal inspection in USPAP: - CORRECT ANSWER An appraiser is not expected to perform specialized testing or use special equipment An appraiser values a property based on viewing high-definition video footage shot from a drone piloted by the appraiser's assistant. The appraiser did not visit the property. The appraiser views and reviews the video footage so many times that she truly feels like she has been at the property. May the appraiser sign a certification indicating that she made a personal inspection of the subject property? - CORRECT ANSWER No, because the appraiser was never physically present at the property The definition of misleading in the 2020-21 USPAP specifies that a misrepresentation, misstatement, or concealment of relevant facts or conclusions: - CORRECT ANSWER May be intentional or unintentional Features that affect a property's value or marketability are: - CORRECT ANSWER Relevant characteristics An appraiser inserts this statement in an appraisal report. "The dwelling has one bedroom and therefore does not meet the demands of typical buyers in its market." What is this statement? - CORRECT ANSWER Both a physical characteristic and an assignment result Physical characteristics are best described as: - CORRECT ANSWER Facts An appraiser is developing a market value appraisal. What should he or she do with regard to the definition of value? - CORRECT ANSWER Identify the definition of market value that is appropriate for the assignment In a real property appraisal assignment, assignment conditions would NOT include: - CORRECT ANSWER Assignment due date One who is expected to render valuation services competently and in a manner that is independent, impartial, and objective, is the definition of: - CORRECT ANSWER Appraiser Assignment elements include all of the following except: - CORRECT ANSWER Due date for report submission An appraiser completes an appraisal on a property, using a current effective date, and transmits the report to the client. The client subsequently requests the appraiser to revise the appraisal to change the effective date to a retrospective date. May the appraiser comply with this request as part of the original assignment? - CORRECT ANSWER No, changing the effective date results in a new assignment An appraiser is offered an appraisal review assignment by a potential new client. What must the appraiser do before determining the scope of work for this assignment? - CORRECT ANSWER Identify the assignment elements An appraiser is asked by a client, a residential mortgage lender, to value a mixed-use property solely as a residence and omit any information about the property's non-residential characteristics from the appraisal report. The appraiser complies with the client's request. What is the most appropriate USPAP term to describe the appraiser's actions? - CORRECT ANSWER Misleading In an appraisal report on a unit in a condominium project, an appraiser notes that the project has a pool, a playground, and a clubhouse. These are: - CORRECT ANSWER Physical characteristics An appraiser is not permitted by the client to make a personal inspection of the subject property. The appraiser determines she does not have sufficient information about the property's relevant characteristics to produce a credible appraisal. The client does not permit the appraiser to alter the scope of work to gather the information, and the appraiser cannot use an extraordinary assumption about the information because credible assignment results cannot be developed. What should the appraiser do? - CORRECT ANSWER Withdraw from the assignment A party who receives a copy of an appraisal report is automatically an intended user. - CORRECT ANSWER False Which of these is an opinion developed by an appraiser? - CORRECT ANSWER Exposure time An appraiser explains the exclusion of the income approach by stating in the appraisal report, "The income approach is not necessary for credible assignment results." Does this meet the appraiser's obligation under USPAP to explain the omission of this approach? - CORRECT ANSWER No, the appraiser must explain why the approach is not necessary When disclosing the scope of work performed in an appraisal review report, an appraiser must provide sufficient information to allow _______ to understand the scope of work performed. - CORRECT ANSWER The client and other intended users In an appraisal report, when disclosing the scope of work performed, an appraiser must consolidate the disclosure into a specific labeled section of the report. - CORRECT ANSWER False All appraisal review assignments performed in compliance with USPAP require the appraiser performing the appraisal review to possess geographic competency. True or false? - CORRECT ANSWER False The ASB moved the language stating, "Perfection is impossible to attain, and competence does not require perfection..." into the COMPETENCY RULE. Why did the ASB do this? - CORRECT ANSWER To clarify that it applies to both development and reporting An appraiser wishes to perform an appraisal review assignment, but he does not have the knowledge or experience to perform competently. At what point must the appraiser disclose his lack of knowledge or experience to the client? - CORRECT ANSWER Prior to agreeing to perform the assignment An appraiser is valuing a property and has been asked by the client to develop its value based on special non-market financing that is being offered by its owner. What does USPAP require the appraiser to do in this situation? - CORRECT ANSWER Identify the terms of the financing and any influences on value When identifying the relevant characteristics of the subject property in an appraisal assignment, an appraiser uses information that she did not personally gather. Which statement is TRUE about the appraiser's use of this information? - CORRECT ANSWER The information must be from sources the appraiser reasonably believes are reliable. When is an appraiser required to develop an opinion of reasonable exposure time in an appraisal? - CORRECT ANSWER When reasonable exposure time is a component of the value definition used in the appraisal An appraiser is valuing a former industrial site which is known to be contaminated. The appraiser's client, who is the property owner, asks the appraiser to value the property under the extraordinary assumption that it is not contaminated. May the appraiser use this extraordinary assumption as requested by the client? - CORRECT ANSWER No, because there is no reasonable basis for the extraordinary assumption An appraiser is engaged by a financial institution to prepare an appraisal on a residential dwelling located in a residential zone. This institution requires that all appraisals be performed "as-is" as of the effective date. The owner has petitioned the local municipality for a zoning change to allow for office building use, and he plans to raze the dwelling and construct an office building. As such, he asks the appraiser to value the property under the hypothetical condition that the requested zoning change has already been granted. Is this permissible under USPAP? - CORRECT ANSWER No, because it would not result in a credible analysis for the intended use For consistency, the ASB made edits to USPAP to remove the term "intangible items" and replace it with: - CORRECT ANSWER Intangible assets For 2020-21, the edits that were made by the ASB to Standards Rule 1-5 (Sale Agreements, Options, Listings, and Prior Sales) were made in order to: - CORRECT ANSWER Remove an unnecessary Comment for consistency When necessary for credible assignment results in developing a market value opinion, an appraiser must identify and analyze: - CORRECT ANSWER All of these A client requests an appraiser change the effective date on an appraisal report that has already been completed and transmitted to the client. What should the appraiser do? - CORRECT ANSWER Treat the request as a new assignment Which statement regarding Restricted Appraisal Reports is correct? - CORRECT ANSWER In a Restricted Appraisal Report, the identity of any additional intended user(s) must be stated by name. An appraiser is valuing a property that is currently listed for sale. In a Restricted Appraisal Report, the appraiser must ________ the results of the appraiser's analysis of the current listing. - CORRECT ANSWER Summarize In an appraisal assignment, an appraiser develops an opinion of reasonable exposure time for the subject property. In the Restricted Appraisal Report prepared for this assignment, the appraiser: - CORRECT ANSWER Must state this opinion An appraiser is providing a Restricted Appraisal Report in a situation where there is an intended user in addition to the client. In the report, the appraiser must: - CORRECT ANSWER State the identity of the intended user by name Two appraisers work together on an appraisal assignment. Both appraisers sign the letter of transmittal in the report. Which statement is TRUE regarding a signed certification in this situation? - CORRECT ANSWER Both appraisers must also sign a certification. Appraiser A receives assistance in an assignment from Appraiser B. Appraiser A signs a certification and states Appraiser B's name in the certification as having provided significant appraisal assistance. Where does the summary of Appraiser B's assistance need to be disclosed? - CORRECT ANSWER Anywhere in the report An appraiser is preparing an appraisal report using a form that contains a pre-printed certification page. The form has not been updated in several years and the pre-printed certification does not contain a statement regarding whether or not the appraiser provided services related to the subject property within the prior three years. What should the appraiser do? - CORRECT ANSWER Include a supplemental certification that includes the required elements An appraiser develops an appraisal on a residential property. The client does not want or need a written report, so the appraiser gives an oral report. What is the appraiser required to insert into the workfile after providing this oral report? - CORRECT ANSWER Both of these items Which of the following words BEST describes Advisory Opinions? - CORRECT ANSWER Guidance Why does the ASB issue Advisory Opinions? - CORRECT ANSWER To offer guidance and advice for the resolution of appraisal problems An appraiser is preparing a Restricted Appraisal Report on a property that is currently offered for sale. In the report, the appraiser states, "The subject property has been offered for sale for 30 days for $249,000." No other mention is made in the report regarding the property's listing. Does this statement in the report comply with USPAP's minimum reporting requirements? - CORRECT ANSWER No, because USPAP requires a summary of the appraiser's analysis of the listing When appraising real property, an appraiser's personal inspection of the subject property is: - CORRECT ANSWER Limited to things that are readily observable without special testing or equipment An appraiser is valuing a large tract of vacant land in a remote rural area. The appraiser is unable to physically get to the subject property due to lack of road access. From an adjoining property, the appraiser pilots a drone over the subject property and obtains high-quality video footage. The appraiser uses this video footage to obtain information about the subject property's physical characteristics. Which statement is TRUE regarding this situation? - CORRECT ANSWER The appraiser may not certify that he or she made a personal inspection of the subject property. Why is a personal inspection of a subject property often made by an appraiser when developing an appraisal? - CORRECT ANSWER To gather information about its relevant characteristics Appraiser L is valuing an improved residential property. Appraiser L does not inspect the property; instead he relies on information from a personal inspection that was performed by Appraiser M. In the appraisal report, is Appraiser L required to identify Appraiser M as having provided significant appraisal assistance? - CORRECT ANSWER Yes, Appraiser M must be identified in the report certification as having provided significant appraisal assistance An individual provides assistance to an appraiser by researching, selecting, and verifying sales for use in the sales comparison approach. The individual does not participate in any other aspect of the appraisal process. Which statement is TRUE about this individual's assistance in this assignment? - CORRECT ANSWER This is significant appraisal assistance, which requires disclosure in the report. An appraiser is engaged to appraise a single-unit residence. The client states that the appraiser may not inspect the subject property, but instead must rely on information provided by a third-party inspector. The report from the third-party inspector does not contain sufficient information for the appraiser to identify the subject property's relevant characteristics, and no additional information is available from other sources, including public records. The client does not permit the appraiser to expand the scope of work to include gathering the needed information. What is the appraiser's best option in this situation? - CORRECT ANSWER Withdraw from the assignment An appraiser hires an individual to set appointments, answer emails, and type reports in her appraisal firm. The individual performs no research or analysis. Is this individual providing significant appraisal assistance? - CORRECT ANSWER No, because these tasks are clerical assistance Except when __________, an appraiser must identify the client in an appraisal or appraisal review report - CORRECT ANSWER Specifically requested by the client not to do so An appraiser has an obligation under USPAP to ensure that a report contains sufficient information so that: - CORRECT ANSWER Intended users can understand it properly Which of these is NOT an example of a "reasonable step" that an appraiser should take to ensure that a sufficient quantity and quality of data has been collected in a mass appraisal assignment? - CORRECT ANSWER Only licensed individuals may participate in data collection and screening An appraiser is preparing a Restricted Appraisal Report but wants to provide detailed support and rationale for the highest and best use opinion in the report. What is the appraiser's best course of action? - CORRECT ANSWER Exceed the minimum requirements and provide the detailed information in the Restricted Appraisal Report Which of these identifications of other intended users would be appropriate in a Restricted Appraisal Report? - CORRECT ANSWER "Very Big Bank, Inc." A client's desire for a concise report of an appraisal would affect: - CORRECT ANSWER The reporting process used by the appraiser Which of these content items must be summarized in a Restricted Appraisal Report? - CORRECT ANSWER The results of the analysis of the subject's sales, agreements of sale, options, and listings Which of these is NOT required to be included in a Restricted Appraisal Report prepared in compliance with USPAP? - CORRECT ANSWER The definition of value An appraiser is performing an appraisal assignment for a client, which is a government agency. The appraiser will be reporting the appraisal in a Restricted Appraisal Report. Is the appraiser required to provide this client with access to the appraisal workfile? - CORRECT ANSWER No An appraiser is asked to perform a real property appraisal that is based on an exterior-only inspection of the subject property from the street. The appraiser makes the inspection and completes the appraisal. In the report, the appraiser must: - CORRECT ANSWER Disclose the extent of the property inspection An appraiser develops an appraisal and reports it in a Restricted Appraisal Report. The workfile in support of the report must be sufficient to: - CORRECT ANSWER Produce an Appraisal Report An appraiser is engaged by a client to prepare a market analysis for a certain type of property in a defined geographic area. No specific subject property is identified and no value opinion is developed. Does USPAP require the appraiser to create and maintain a workfile for this assignment? - CORRECT ANSWER No An appraiser prepares a cost approach as part of a real property appraisal assignment and reports the appraisal in a Restricted Appraisal Report. The appraiser uses a published cost service as the source for the estimate of cost new for the property improvements. In the workfile, is the appraiser required to copy and include the pages from the published cost service? - CORRECT ANSWER No, the workfile may contain a reference to the location of this information. An appraiser is performing an appraisal for a government agency. No testimony is required in this assignment. The agency has a regulation that requires appraisers to retain their appraisal workfiles for 4 years after preparation. Is this a jurisdictional exception? - CORRECT ANSWER No, an appraiser may comply with both the regulation and USPAP by retaining the workfile for 5 years An appraiser completes a mortgage lending appraisal and reports it on the URAR form. The lender's underwriter contacts the appraiser and asks the appraiser to remove one of the comparable sales because the underwriter does not think it is sufficiently similar to the subject. What should the appraiser do? - CORRECT ANSWER Not remove the comparable sale, because doing so might result in a misleading report An appraiser completes an appraisal for a client and transmits the report. Two weeks later, the client contacts the appraiser and asks the appraiser to add a new intended user to the report and re-send it. What should the appraiser do? - CORRECT ANSWER Treat the request as a new assignment An appraiser completes an appraisal and transmits the report to the client. Several weeks later, another lender contacts the appraiser and asks the appraiser to provide a "reliance letter" that will enable that other lender to rely on the report for their own use. Which statement is TRUE about this situation? - CORRECT ANSWER The appraiser should not issue such a letter because it would essentially add an intended user after the fact. An appraiser wishes to perform an assignment but does not possess the knowledge and experience to complete it competently. The appraiser notifies the client of the lack of knowledge and experience and takes steps to obtain the knowledge and experience. Actions taken by the appraiser to obtain the knowledge and experience might include: - CORRECT ANSWER All of these An appraiser completes an appraisal for a mortgage lender and transmits the report. A month later, a different lender asks the appraiser to readdress the report to them. The appraiser decides to treat the request as a new assignment. Which statement is TRUE regarding this situation? - CORRECT ANSWER The appraiser is required to disclose to the new client that he or she previously provided appraisal services on the subject property. An appraiser completes an appraisal assignment for Lender A and transmits the report. Several days later, Lender B contacts the appraiser and asks the appraiser to change the client name on the appraisal report to Lender B and transmit the report to them. What should the appraiser do? - CORRECT ANSWER Treat the request from Lender B as a new assignment An appraiser is required by USPAP to disclose any prior services that he or she performed regarding the subject property within: - CORRECT ANSWER Three years prior to the agreement to perform the assignment An appraiser has agreed to perform an appraisal assignment on a property. During the appraiser's inspection of the property, he suddenly realizes that approximately two years prior, he had performed an appraisal review of an appraisal on this property that was completed by another appraiser. What should the appraiser do in accordance with USPAP? - CORRECT ANSWER Immediately disclose to the client that he provided a service regarding the subject property within the prior three years In an appraisal review, a reviewer opines that some of the adjustments in the work under review are unreasonable. Which statement is TRUE regarding this situation? - CORRECT ANSWER The reviewer is not required by USPAP to provide alternate adjustments. A reviewer is performing an appraisal review on an appraisal report prepared by a newly certified appraiser. The reviewer finds numerous significant errors in the report. The reviewer takes pity on the appraiser and only comments on some of the errors in his appraisal review report, and is careful to minimize their significance. Which statement is TRUE regarding this situation? - CORRECT ANSWER The reviewer has potentially violated USPAP by performing an appraisal review with bias. An appraiser is performing an appraisal review on an Appraisal Report. The report being reviewed contains no indication that the original appraiser had performed a sales comparison analysis; it merely states a value conclusion. Is it appropriate for the reviewer to state that no analysis was performed in developing the appraisal? - CORRECT ANSWER Yes, such a statement would be appropriate In an Appraisal Report, an appraiser is required to ________ the information analyzed, the appraisal methods and techniques, and the reasoning that supports the analyses, opinions, and conclusions. - CORRECT ANSWER Summarize A client requests that an appraiser provide additional comparable sales after a report has already been completed and transmitted. Does this change the scope of work of the appraisal? - CORRECT ANSWER Yes An appraiser completes an appraisal based solely on the sales comparison approach and transmits the report to the client, a mortgage lender. The client subsequently requests that the appraiser complete the cost approach. Which statement is TRUE regarding this situation? - CORRECT ANSWER This request changes the scope of work but does not automatically create a new assignment. An individual is both an appraiser and a real estate broker. Two years ago, she provided brokerage services on a property. Today, she has been asked to appraise the property by a potential client. Which statement is TRUE regarding this situation? - CORRECT ANSWER She must disclose to the client that she provided brokerage services on the property within the prior three years. An appraiser is working on an appraisal assignment for which she is not required to inspect the subject property. Instead, information about the property's physical characteristics was given to her by the client. The appraiser believes the information provided by the client is not sufficient for her to develop a credible opinion of value. Which of these is NOT a permissible course of action for the appraiser? - CORRECT ANSWER Base the appraisal on the hypothetical condition that the information provided by the client is sufficient An appraiser has agreed to perform an appraisal on a property. The appraiser is not inspecting the subject property; instead the appraiser will use information from a third-party inspector's report to identify the relevant physical characteristics. Under what circumstances would the appraiser NOT use an extraordinary assumption in this assignment? - CORRECT ANSWER If the appraiser determines the information in the inspection report is reliable and will allow the development of credible assignment results Is an appraiser permitted by USPAP to perform an appraisal on a property if the property inspection is to be performed by a third party? - CORRECT ANSWER Yes, but the appraiser must certify in the report that he or she did not inspect the property [Show Less]
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7-hour National USPAP Exam 89 Questions with Answers,100% CORRECT
7-hour National USPAP Exam 89 Questions with Answers You are reading an Advisory Opinion in the USPAP publication. Officially, Advisory Opinions are c... [Show More] onsidered: - CORRECT ANSWER Other communications, and not part of USPAP A new edition of USPAP has been released. Which statement is true regarding the effective date of this new edition of USPAP? - CORRECT ANSWER The ASB determines when the edition of USPAP will be effective. Which statement is most accurate regarding the ASB's analysis of comments to exposure drafts? - CORRECT ANSWER Each member of the ASB reads and considers all comments. The ASB releases an exposure draft of proposed changes to USPAP, and you wish to provide comments. At a minimum, you will have _______ to provide comments to the ASB. - CORRECT ANSWER 30 days As the terms are used by the ASB, what is the difference between a Discussion Draft and an Exposure Draft? - CORRECT ANSWER An Exposure Draft is a formal proposal to revise USPAP, while a Discussion Draft merely solicits feedback from industry participants. You want to participate in the USPAP revision process but are busy and prefer not to travel. What is your best option? - CORRECT ANSWER Register for ASB meetings and livestream them on your computer as they are happening. Changes to USPAP may only be made after: - CORRECT ANSWER Completion of the exposure process and discussion and adoption at a public meeting Published stories alleging bias and discrimination by appraisers have appeared: - CORRECT ANSWER In news outlets across the country One common thread in news articles about appraisers is the allegation that the appraisal process is ________. Conversely, USPAP requires an appraiser to be ________. - CORRECT ANSWER Subjective, objective Fair housing laws would apply to an appraisal of _________, but not to the appraisal of ____________. - CORRECT ANSWER A duplex, a medical office When does USPAP prohibit an appraiser from using or relying on SUPPORTED conclusions about protected classes? - CORRECT ANSWER When such conclusions violate federal, state, or local laws In which of these situations might it be appropriate for an appraiser to research the number of members of a protected class and use supported conclusions regarding members of this protected class in an appraisal assignment? - CORRECT ANSWER When appraising a unit in an age-restricted (55 and older) community An appraiser issues an appraisal report on a single-unit residence that understated the GLA by 20%. Which statement is most accurate about this situation? - CORRECT ANSWER The report is misleading, and may constitute a violation of USPAP. An appraiser is valuing a residential property in a divorce case. The appraiser develops an inclination that precludes his impartiality and objectivity in the assignment, yet he proceeds with the appraisal anyway. It can accurately be stated that the appraiser is: - CORRECT ANSWER Biased An appraiser is valuing a four-unit residential property for a mortgage lender, and is accused by the lender of violating a state fair housing law in the performance of the appraisal. The appraiser responds angrily that there are thousands of laws out there and they cannot be expected to know every single law. Which statement is true regarding this situation? - CORRECT ANSWER The COMPETENCY RULE requires the appraiser to be aware of and comply with applicable laws. Which part of USPAP requires an appraiser to be aware of, and comply with, fair housing laws and regulations that may apply in an assignment? - CORRECT ANSWER The COMPETENCY RULE Which statement is true regarding the ETHICS RULE? - CORRECT ANSWER Violations of the ETHICS RULE are among the most serious, and usually result in significant sanctions by state enforcement agencies. Every time an appraiser signs a certification in an appraisal report that is in compliance with STANDARDS RULE 2-3, the appraiser is certifying: - CORRECT ANSWER Their opinions and conclusions were developed without bias Which of these actions is a good way for appraisers to continually remind themselves of their ethical obligations, including the obligation to perform without bias? - CORRECT ANSWER Re-read the certification statement each time they complete an appraisal report Which of these would be the most common type of bias of which an appraiser might be accused? - CORRECT ANSWER Unintentional bias In which phase of the appraisal process is bias most likely to occur? - CORRECT ANSWER Appraisal development An appraiser's report states, "The subject is located in a desirable neighborhood" and does not provide any further explanation regarding neighborhood characteristics. What is the potential problem with this statement? - CORRECT ANSWER The statement is unsupported and therefore could lead an accusation of bias In real property appraisal reports, many appraisers are accustomed to using terms that provide a scale, such as "good," "average," "slow," and others. Which is the best advice for appraisers who use such terminology? - CORRECT ANSWER Explain the frame of reference and put the ratings in context Appraisers who use terms that provide a scale, such as "good," "average," "high," or "low" are advised to _____________. - CORRECT ANSWER Follow the terms with a word such as "because" and explain the reason for the rating In order to identify relevant characteristics of a subject property, and to avoid accusations of bias, an appraiser should: - CORRECT ANSWER Focus on extracting factual information from the market What, if anything, is wrong with using the term "high-crime area" to describe the subject property neighborhood in an appraisal report? - CORRECT ANSWER The term may be understood by the appraiser but might be misleading to the client What is the best course of action by an appraiser to ensure that intended users and others have no perception of bias when reviewing the appraiser's work? - CORRECT ANSWER Make sure conclusions are based on factual data with context An appraiser is valuing a single-unit residence that was custom-designed for a disabled individual. The property has no steps; instead, ramps go from level to level. The hallways and doorways are wider, and the light switches are lower on the wall than typical. Plumbing fixtures are designed to accommodate wheelchair access. These special improvements were quite costly when new. Which answer best describes how an appraiser should consider these special improvements when valuing the property? - CORRECT ANSWER Research and reflect market preferences in valuing the property The Voluntary Disciplinary Action Matrix sets forth five levels of sanction, with Level V being the most serious. According to the Matrix, "Testifying as an expert without proper experience" could be a violation of the ETHICS RULE. Under what level of sanction would this offense be classified? - CORRECT ANSWER It depends on whether this is the appraiser's first, second, or third offense Which statement is true regarding the Appraisal Foundation's Voluntary Disciplinary Action Matrix (VDAM)? - CORRECT ANSWER It is intended to help states provide consistency in sanctions issued to violators. Assuming a first offense, which of these actions by an appraiser would be the most significant violation of USPAP, according to the Voluntary Disciplinary Action Matrix? - CORRECT ANSWER Using significant parts of another appraiser's report without permission Which statement is true regarding mitigating circumstances as outlined in the Voluntary Disciplinary Action Matrix? - CORRECT ANSWER Mitigating circumstances can result in a lesser sanction being issued, but they do not excuse the violation. Which of these actions by an appraiser would be considered an aggravating circumstance and would most likely result in an increased sanction for performing an appraisal that did not comply with USPAP? - CORRECT ANSWER The error was committed by a trainee and the appraiser failed to exercise due diligence in the supervision of the trainee. An appraiser is providing a market value opinion on real property and wants to determine if they are required to perform in compliance with USPAP. When must an appraiser comply with USPAP when completing this assignment? - CORRECT ANSWER When required by law, regulation, or agreement with the client A new appraiser trainee is reading USPAP. What can this individual expect to find in USPAP? - CORRECT ANSWER Required rules for ethical behavior and performance For whom is USPAP written? - CORRECT ANSWER Appraisers and users of appraisal services FAQs are an important component of the USPAP publication. Which statement best describes the role of FAQs? - CORRECT ANSWER They illustrate the applicability of USPAP in specific situations. The USPAP publication is available in both hard copy (paper) and electronic format. What is an advantage to using the electronic version of USPAP? - CORRECT ANSWER The electronic version is searchable using a word or phrase. Which of these items is not part of USPAP? - CORRECT ANSWER FAQs Advisory Opinions are part of the USPAP publication. Which statement is true regarding Advisory Opinions? - CORRECT ANSWER They illustrate applicability of standards to specific appraisal issues. In which part of an Advisory Opinion would you find the overarching question that the AO intends to answer, which often includes background information and a question (or questions)? - CORRECT ANSWER The Issue Most Advisory Opinions are similar in structure. Which of these is not a typical component of an Advisory Opinion? - CORRECT ANSWER Frequently Asked Questions In which part of an Advisory Opinion might you find an example of language that could be used in an appraisal report? - CORRECT ANSWER Illustrations Which statement is true regarding the ASB, Advisory Opinions, and the exposure process? - CORRECT ANSWER Advisory Opinions are not required to be exposed in order to be adopted or revised, but the ASB typically exposes them anyway. Which of these would be more narrowly focused? - CORRECT ANSWER An FAQ An appraiser is referencing an FAQ in the USPAP publication to solve an appraisal problem. Which statement about the advice provided in the referenced FAQ is most correct? - CORRECT ANSWER The advice presented in the FAQ does not represent the only possible solution to the issue. You are searching in the FAQs section of the USPAP publication for an FAQ on a particular topic related to appraisal reporting. Which of these is the BEST advice to help you find your FAQ? - CORRECT ANSWER The FAQs are arranged in the same order as the topics in USPAP. An appraiser is preparing an appraisal in compliance with both USPAP and an international valuation standard. What advice does the ASB provide in this situation? - CORRECT ANSWER Use the bridge document prepared jointly by ASB and IVSC An appraiser is valuing a property with an effective date of June 1, 2017. The appraiser inspected the property on December 18, 2019 and transmitted the report to the client on February 11, 2020. With which edition of USPAP must the appraiser comply in this assignment? - CORRECT ANSWER 2020-2022 Edition An appraiser is valuing a residential property. In order to develop a credible value opinion, an appraiser must: - CORRECT ANSWER Obtain sufficient information about the property's physical characteristics from reliable sources What does the ASB advise appraisers to do in order to minimize the likelihood of appraisal workfiles being damaged or destroyed in a natural disaster? - CORRECT ANSWER Create frequent backups of electronic workfiles A systematic approach may be employed to answer USPAP questions. What is the first step in this process? - CORRECT ANSWER Define the problem Paging randomly through USPAP searching for an answer, without defining the problem and creating a plan, is analogous to: - CORRECT ANSWER Wandering aimlessly through a home improvement store looking for one item You have a USPAP-related question that you need to address before you can agree to perform a very lucrative assignment. Which of these would be the most important question, that, when answered, will put you on a path to solving this USPAP-related problem? - CORRECT ANSWER Where does the answer to your question live in the USPAP publication? You are a state-credentialed appraiser and you have been offered an appraisal assignment on a complex property. You are questioning whether or not your state-issued credential will permit you to appraise the property. What is the best source to find the answer to this question? - CORRECT ANSWER Your state appraiser licensing law An appraiser is developing an appraisal on a complex, income-producing property, and wants to develop a discounted cash flow analysis. Where should the appraiser go to find information on how to develop this valuation method? - CORRECT ANSWER Appraisal textbooks Finding where the answer to your question lives in the USPAP publication is not as simple as it may first appear. Why is this? - CORRECT ANSWER The answer may live in several different parts of USPAP, or in the guidance A real property appraiser has been asked to prepare an appraisal on a two-unit residence for mortgage financing. Instead of reporting the results on a secondary market report form, the client asks the appraiser to prepare a narrative-style report. The appraiser is required by state law to comply with USPAP in this assignment. With which part or parts of USPAP does the appraiser need to comply? - CORRECT ANSWER All of the Rules in USPAP, as well as STANDARDS 1 and 2 You are answering a USPAP question. As part of the process, you may need to answer several additional questions in order to properly define the problem. - CORRECT ANSWER True An appraiser is working on an appraisal assignment for a mortgage lender client. The client requests two front photos, two rear photos, two street scene photos, and a photo of the property located directly across the street. How would this request BEST be classified? - CORRECT ANSWER As a client condition Two weeks after transmitting an appraisal report on a residential property, an appraiser is contacted by the client asking that the appraiser change the borrower's name on the report. The original borrower was not identified as an intended user in the assignment. Which statement is true regarding this situation? - CORRECT ANSWER The appraiser may change the name and re-transmit the report with a new date of report. You are using the search feature in the eUSPAP, and are searching for the term "intended user." What are you likely to find? - CORRECT ANSWER There are so many results that the search isn't helpful Appraiser A is providing value ranges to potential clients before quoting appraisal fees and agreeing to perform assignments. Is a range of value an appraisal as defined in USPAP? - CORRECT ANSWER Yes, always Is Appraiser J performing as an appraiser when developing these value ranges prior to the agreement to perform an assignment? - CORRECT ANSWER Yes, because they are performing an appraisal Appraiser J does not prepare workfiles for the value ranges provided to the prospective clients. Only after a "full" appraisal is ordered by the client, Appraiser J prepares a workfile. When is Appraiser J required to prepare a workfile for these assignments? - CORRECT ANSWER Before issuing any report or communication of assignment results Is Appraiser J required by USPAP to prepare a workfile in these assignments where the client does not order a full inspection appraisal? - CORRECT ANSWER Yes, a value range is an appraisal, so a workfile must be created and maintained Is Appraiser J permitted under USPAP to receive compensation for an appraisal based on the value of the property (e.g., $100 of an appraisal fee for every $100,000 of property value)? - CORRECT ANSWER No, this is prohibited Which part of USPAP addresses the issue of basing an appraiser's compensation on the appraised value of the property? - CORRECT ANSWER The ETHICS RULE Who are Appraiser J's peers? - CORRECT ANSWER Other appraisers who have expertise in the same or a similar assignment Two appraisers work together on an appraisal assignment. Both appraisers sign the letter of transmittal in the resulting appraisal report. Which statement is TRUE regarding the requirement for a signed certification in this report? - CORRECT ANSWER Both appraisers must sign a certification. Is it permissible under USPAP for an appraisal report to contain two certifications? - CORRECT ANSWER Yes, multiple certifications are permitted in the same report Does USPAP require an appraiser to produce an appraisal report that is free of typographical errors? - CORRECT ANSWER No Under USPAP, credible is an adjective that applies to _________, and misleading is an adjective that applies to _________. - CORRECT ANSWER Appraisal development, appraisal reporting An appraiser's research indicates that the personal property component of a hotel property has a value of approximately $2 million. However, at the behest of the client, the appraiser indicates in the appraisal report that the personal property has no value. Which USPAP term best describes this situation? - CORRECT ANSWER Bias Appraiser A is providing value ranges to potential clients before quoting appraisal fees and agreeing to perform assignments. Is a range of value an appraisal as defined in USPAP? - CORRECT ANSWER If an appraiser delivers an appraisal report after the due date, is that a violation of USPAP? - CORRECT ANSWER No The due date for an assignment is best described as: - CORRECT ANSWER A client condition Is the appraiser correct in disregarding the client's instructions and not making a personal inspection of the subject property? - CORRECT ANSWER No, because the client may have some input into the scope of work, and their instructions to inspect the property are an assignment condition Is an appraiser required to clearly identify the intended use of an appraisal, and if so, why? - CORRECT ANSWER Yes, it is necessary to identify the intended use because the credibility of assignment results is judged in the context of intended use. In completing this assignment, assuming the appraiser had clarified the intended use, what should the appraiser have done with regard to property inspection? - CORRECT ANSWER The appraiser should have made a personal inspection of the property as agreed upon with the client. An appraiser completes an appraisal for an agent of a client and transmits the report. The agent subsequently asks the appraiser to change the name of the client and re-transmit the report, because the agent provided the wrong client name to the appraiser. What should the appraiser do in accordance with USPAP? - CORRECT ANSWER Consider the request as a new assignment An appraiser completes an appraisal on a property for a mortgage lender as the client. The appraiser identifies the buyer of the property as an intended user. Is the appraiser permitted by USPAP to disclose confidential information or assignment results to the buyer? - CORRECT ANSWER No, unless the client provides authorization for the appraiser to do so May the appraiser discuss facts in the appraisal report with a party who is not the appraiser's client or an intended user? - CORRECT ANSWER Yes, as long as they do not disclose confidential information or assignment results There were well-publicized allegations of construction defects involving the subject properties. Are these allegations considered to be facts that could affect the value of these properties? - CORRECT ANSWER Yes, well-publicized allegations of defects are facts that could affect value An appraiser is valuing a property for which the zoning is indeterminate. The appraiser made several attempts to verify the zoning with the municipality but was unsuccessful. An adjacent property is zoned HC-Highway Commercial. The appraiser states in the report that the zoning could not be confirmed and it is believed to be HC, and values the property as such. The report also states that this might have affected the value conclusion. This appraisal involves the use of: - CORRECT ANSWER An extraordinary assumption only In the case study scenario, Appraiser One wrote a letter outlining the alleged deficiencies in the other appraiser's report and setting forth a value opinion. Should Appraiser One have printed this letter on company letterhead? - CORRECT ANSWER No In the case study scenario, Appraiser One wrote a letter to the lender outlining the alleged deficiencies found in the other appraiser's report. Is this an appraisal review assignment? - CORRECT ANSWER No - CORRECT ANSWER - CORRECT ANSWER [Show Less]
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