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USPAP 15-Hour Course Exam (10 sets) Questions with Answers,100% CORRECT
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USPAP 15-Hour Course Exam 171 Questions with Answers,100% CORRECT
USPAP 15-Hour Course Exam 171 Questions with Answers The Preamble states that USPAP is - CORRECT ANSWER for appraisers and users of appraisal services. ... [Show More] The stated purpose of USPAP - CORRECT ANSWER Promote and maintain a high level of public trust in appraisal practice. When obligated by law or regulation an appraiser must - CORRECT ANSWER comply with USPAP. USPAP applies to which types of properties? - CORRECT ANSWER Tangible and Intangible Valuation services - CORRECT ANSWER is not a subset of appraisal practice. An appraiser has the professional responsibility - CORRECT ANSWER to identify the capacity in which he or she is performing. Reasons why an appraiser would prepare an appraisal assignment in conformance with USPAP - CORRECT ANSWER 1. Agreement with client. 2. Law or regulation. 3. Voluntary choice. An appraiser who provides an appraisal service that is not an appraisal, appraisal review, or appraisal consulting assignment does not have workfile obligations associated with the assignment. - CORRECT ANSWER True An individual is not prohibited from providing valuation services that involve advocacy while acting as an appraiser. - CORRECT ANSWER False When performing valuation services outside of appraisal practice, appraisers must be careful not to _________________ the client and other intended users about their role. - CORRECT ANSWER Mislead USPAP states that in a situation when an individual is not required by law, regulation, or agreement to comply with USPAP: - CORRECT ANSWER The individual should still comply when acting as an appraiser. An appraiser is engaged to teach an appraisal course. What parts of USPAP apply? - CORRECT ANSWER The parts of USPAP that apply generally to appraisal practice. The Appraisal Practices Board (APB) was created when? - CORRECT ANSWER 2010 The APB is a(n) - CORRECT ANSWER independent board. Boards within The Appraisal Foundation (TAF) - CORRECT ANSWER 1. Board of Trustees (BOT) 2. Appraisal Standards Board (ASB) 3. Appraisal Qualifications Board (AQB) 4. Appraisal Practices Board (APB) APB is a - CORRECT ANSWER private entity. The APB has authority to enforce the requirements of USPAP. - CORRECT ANSWER False Who has the only jurisdiction and authority over appraisers? - CORRECT ANSWER States ASB - CORRECT ANSWER Develops, interprets, and amends USPAP. Advisory opinions - CORRECT ANSWER Not part of USPAP; reference material only. APB - CORRECT ANSWER Guidance is voluntary. ASC - CORRECT ANSWER Maintains the official National Registry of state certified and licensed appraisers. State appraisal regulatory committees - CORRECT ANSWER responsible for issuing credentials to individual appraisers. Responsibilities of ASC: - CORRECT ANSWER • Establishes, improves, and promulgates the USPAP • Subject, content, and substance of USPAP and other communication related to appraisal standards. • Establishes standards of professional appraisal practice for the guidance and education of appraisers and users of appraisal services. • Maintains the official National Registry of state certified and licensed appraisers. Developing, amending, and interpreting USPAP is NOT a responsibility of - CORRECT ANSWER ASC 12. USPAP divides the appraisal process into two distinct types of activity: - CORRECT ANSWER Develop and report Identify the problem - CORRECT ANSWER The first step in the appraisal process. Communication - CORRECT ANSWER The reporting process involves ________________ of the appraiser's opinions and conclusions. AQB - CORRECT ANSWER • Disseminates to state appraisal boards the qualifications criteria for appraiser certifications and recertification. • Responsible for establishing education and experience requirements for licensing and certification of appraisers. BOT - CORRECT ANSWER appoints members of the APB, AQB, ASB. The ethical obligations of USPAP apply to - CORRECT ANSWER Individual appraisers. Bias - CORRECT ANSWER is never allowed. In appraisal practice, advocating the cause or interest of any party or issue is - CORRECT ANSWER never permitted. If an appraiser has appraised a property multiple times within the prior 3 years he must disclose the number of times he appraised the property to a prospective client. - CORRECT ANSWER True 3 years - CORRECT ANSWER Prior to accepting an assignment, an appraiser must disclose any service he provided regarding the subject property for a period of An appraiser has been asked to complete an appraisal assignment. The fee is to be paid when when the loan closes. According to USPAP, may the appraiser accept the assignment under the conditions? - CORRECT ANSWER No The payment of fees by the appraiser in connection with the procurement of an assignment is - CORRECT ANSWER allowed if properly disclosed. Confidential information is under USPAP is information the appraiser receives from - CORRECT ANSWER the client an dis identified as confidential, but is not available from other sources. The disclosure of confidential information to a third party is unethical unless - CORRECT ANSWER authorized by the client. Competency - CORRECT ANSWER fundamental to the definition of appraiser. An appraiser must obtain the necessary competency prior to accepting the assignment. - CORRECT ANSWER False In order to accept an assignment when an appraise initially lacks the knowledge and experience to complete an assignment competently he must - CORRECT ANSWER Disclose to the client, prior to accepting, the lack of knowledge or experience. USPAP ________________ permit an appraiser to create a workfile after transmitting the report to the client. - CORRECT ANSWER does not An appraiser prepared an appraisal report in April 2009. He testified in court regarding the value of the property in January 2010. The decision was rendered in February 2010 and was appealed in March 2010. The appellate court heard the case in January 2011 and remanded the case for reconsideration by the lower court final disposition of the case occurred in Sept 2011. At a minimum, how long must the appraiser retain his workfile? - CORRECT ANSWER April 2014 Three appraisers work together on an appraisal consulting assignment. What would NOT be an appropriate workfile arrangement under USPAP? - CORRECT ANSWER The workfile is posted on the internet,s o that anyone who wants to see it will be able to see it. Trainer appraiser have the same workfile obligations under USPAP as certified or licensed appraisers. - CORRECT ANSWER True An appraiser's peers - CORRECT ANSWER Others who have expertise and competency in a similar type of assignment. Scope of Work in USPAP - CORRECT ANSWER The report must contain sufficient information so that intended users understand the scope of work. Scope of work decision - CORRECT ANSWER Exclusion of an approach that is not necessary for credible, results in a given assignment. Jurisdictional exception in an assignment - CORRECT ANSWER Identify the law, comply with the laws, disclose in the report the part of USPAP that is voided, and cite in the report the law that caused it. Comply with the law or regulation - CORRECT ANSWER When a law or regulation precludes compliance with any part of USPAP, appraisers must. Purpose of the Jurisdictional exclusion rule - CORRECT ANSWER To provide a saving or severability clause to preserve the balance of USPAP. True - CORRECT ANSWER If USPAP compliance is mandated by federal law, no state or local law can create a jurisdictional exclusion. Jurisdictional exclusion rule term "law" - CORRECT ANSWER Legislative law, court-made laws, and administrative rules and ordinances. False - CORRECT ANSWER Appraisers cannot be expected to be aware of all of the laws and regulations that apply to a particular assignment. False - CORRECT ANSWER The use of the jurisdictional exclusion rule in an assignment is a matter of choice by an appraiser. False - CORRECT ANSWER A state passes a law requiring appraisers to keep their workfiles for 10 years after preparation. This is considered a jurisdictional exclusion under USPAP. Jurisdictional exclusion example - CORRECT ANSWER A probate court paying appraisers based on the value of the subject. Occurrence of a jurisdictional exclusion - CORRECT ANSWER It is automatic when a law precludes compliance with a part of USPAP. 6 Standard Rules - CORRECT ANSWER Standard 1 contains this many rules. The development of a real (only) property appraisal. It mirrors the appraisal process and can be used as a conventional checklist. - CORRECT ANSWER Standard 1. The requirements of Standard 1. - CORRECT ANSWER Used as a checklist by an appraiser who is developing a real property appraisal. does not require - CORRECT ANSWER Standard 1 _________________ an appraiser to achieve perfection in developing a real property appraisal. When the series of errors affects the credibility of the results. - CORRECT ANSWER When does a series of minor errors potentially result in a USPAP violation? Consider whether the extent of the planned development process and report are still appropriate. - CORRECT ANSWER What should an appraiser do if, during the course of an assignment, becomes aware of a change in the intended use of the report? This does not make the borrower an intended user. - CORRECT ANSWER If a borrower receives a copy of an appraisal report from a mortgage lender as a result of disclosure requirements: An appraiser must document the client's identity in the workfile. - CORRECT ANSWER If a client wishes to remain anonymous the appraiser must: Exposure time - CORRECT ANSWER Is always assumed to precede the effective date of the appraisal. False - CORRECT ANSWER Identification of the intended use of an appraisers opinions and conclusions is not necessary in most appraisal assignments. Identify the special financing to form and develop an opinion on their effect on value. - CORRECT ANSWER Special requirements when appraising the market value of a property subject to favorable financing. To collect information about characteristics that are relevant to value. - CORRECT ANSWER The primary purpose of an appraiser making an inspection of the subject property. True - CORRECT ANSWER When appraising proposed improvements, both current and prospective value opinions are permitted by USPAP. The fact that the subject property is affected by an easement. - CORRECT ANSWER An example of a relevant property characteristic that could affect a real property appraisal assignment. True - CORRECT ANSWER An appraiser may use an combination of a property inspection and documentation in identifying relevant characteristics of the subject property. Hypothetical condition - CORRECT ANSWER When an appraiser provides a current value opinion on a proposed new building based upon the proposed improves are completed as of the effective date of the appraisal. Extraordinary assumption - CORRECT ANSWER Only if required to develop credible results. False - CORRECT ANSWER A research assignment, in which an appraiser completes research for a client but does not develop an opinion or conclusion, is not part of appraisal practice. 1. Limits the scope of work to the extent that the value opinion is not credible. 2. Precludes an appraiser's impartiality. 3. Limits report content, resulting in a misleading report. - CORRECT ANSWER Unacceptable assignment condition. Step 3 - CORRECT ANSWER Date Collection and Analysis Market Analysis - CORRECT ANSWER Demand Studies Supply Studies Marketability Studies Highest and Best Use Analysis - CORRECT ANSWER Site as though vacant. Ideal Improvement Property as Improved Step 4 - CORRECT ANSWER Application of the Approaches Value Cost / Sales Comps / Income Captitalization An assignment condition may require an appraiser to develop an approach that he or she would otherwise consider unnecessary. - CORRECT ANSWER USPAP and the 3 approaches to value. The appraiser must analyze such data as are available to indicated value conclusion. - CORRECT ANSWER When developing a sales comp approach under USPAP. Current Listings - CORRECT ANSWER When analyzing listings of the subject property in a real property appraisal assignment, USPAP requires, at a minimum, ___________to be analyzed. Analyzed in the appraisal - CORRECT ANSWER If an appraiser is asked to appraise a property on which there is known, current agreement of sale, the agreement must be All sales of the subject property that occurred within 3 years of the effective date of the appraisal. - CORRECT ANSWER When analyzing the subject property's sales history in a real property appraisal assignment, an appraiser is required by USPAP to analyze Step 5 - CORRECT ANSWER Reconciliation of Value Indications and Final Opinions of Value Careful consideration of the quality and quantity of data - CORRECT ANSWER The process of reconciliation entails False - CORRECT ANSWER Standard Rules 1-5 require an appraiser to analyze the sales history of the comps When such analysis is relevant to the current assignment - CORRECT ANSWER When is it necessary to analyze prior listings of the subject property in a real property appraisal assignment. Step 6 - CORRECT ANSWER Report of Defined Value Opinions Not required by Standard 2 - CORRECT ANSWER The use of standard appraisal reporting forms. Standard 2 - CORRECT ANSWER Sets forth requirements for appraisal report content. Summary Self-Contained Restricted Use - CORRECT ANSWER The 3 written report options stated in Standards Rule 2-2 The level of detail and information - CORRECT ANSWER The essential differences among the 3 reporting options. Client's specific name - CORRECT ANSWER Not required by USPAP to be in a Summary Appraisal Report Effective Date and Report Date - CORRECT ANSWER Must be included when reporting the results of an appraisal. The date of the report - CORRECT ANSWER Establishes the appraiser's perspective on the market. The exclusion of any of the valuation approaches - CORRECT ANSWER Must be explained in a Restricted Use Appraisal Report Scope of work used to develop the appraisal must be summarized - CORRECT ANSWER In a Summary Appraisal Report Must be stated and state that its use may have affected the assignment results. - CORRECT ANSWER An extraordinary assumption used in an appraisal, False - CORRECT ANSWER A workfile is not required in support of a Restricted Use Appraisal Report Equally credible - CORRECT ANSWER A value opinion expressed in a Summary Appraisal Report and a value opinion expressed in a Restricted Use Appraisal Report are False - CORRECT ANSWER There can be intended users other than the client for a Restricted Use Appraisal Report. Sign the certification - CORRECT ANSWER According to USPAP, any appraiser who signs any part of an appraisal report is required to False - CORRECT ANSWER The disclosure of a significant real property appraisal assistance provided in an appraiser's report is not required under USPAP. For the appraiser to acknowledge his/her ethical obligations. - CORRECT ANSWER The purpose of including a signed certification in an appraisal report. True - CORRECT ANSWER A written summary of an oral appraisal report must be added to the appraiser's workfile within a reasonable time after the issuance of an oral report. The appraiser must add a signed and dated certification to her appraisal workfile. - CORRECT ANSWER An appraiser provides an oral report of a real property appraisal assignment Summary Appraisal Report - CORRECT ANSWER To the extent possible and appropriate, oral appraisal reports for real property must address the substantive matters that apply to this report. True - CORRECT ANSWER A Recertification of Value does not change the effective date of the value opinion. He is not permitted to "readdress" the report to Bank B. - CORRECT ANSWER An appraiser completes an appraisal for Bank A. Two months later, he is contacted by Bank B, who asks him to "readdress" his prior report to them.... New Assignment - CORRECT ANSWER If a client requests a more current valuation on a property that was the subject of a prior assignment, this is a False - CORRECT ANSWER USPAP requires an appraiser to obtain a release from a previous client before appraising the same property for a new client. The client is the only intended user - CORRECT ANSWER Restricted Use Appraisal Report Not sign the certification - CORRECT ANSWER If a supervising appraiser makes changes to a trainee's report which the trainee does not agree with, the trainee should communicating, developing - CORRECT ANSWER Appraisal review is the process of _______________ and ____________ an opinion about the quality of another appraiser's work performed as part of an appraisal, appraisal review, or appraisal consulting assignment. Standards are paired - CORRECT ANSWER A major difference bewteen STANDARDS for real property appraisal review is? One - CORRECT ANSWER How many STANDARDS address appraisal review? True - CORRECT ANSWER A reviewer is required to identify the appraiser who completed the work under review, unless the identity has been withheld by the client. Appraisal Review Appraisal Real Property Appraisal Consulting - CORRECT ANSWER Under STANDARD 3, what can be reviewed? Not used as the basis to discredit the original appraiser's value opinion. - CORRECT ANSWER A review appraiser may use additional information that was not available to the original appraiser as long as the information is: False - CORRECT ANSWER It is not permissible for a review appraiser to use an extraordinary assumption in a review assignment. 2-Stage - CORRECT ANSWER An appraisal review can be a _______________ assignment; an appraisal review and a value opinion by the reviewer. False - CORRECT ANSWER An appraiser must develop an opinion regarding the qualifications of the appraiser whose work is under review. STANDARD 1 - CORRECT ANSWER If an appraiser develops his own opinion of value, it must be developed under the requirements of _____________ Scope of Work - CORRECT ANSWER A reviewer who develops his own value opinion may use a different _____________ than that of the work under review. Sufficient information, intended users - CORRECT ANSWER A reviewer is responsible for ensuring that there is _________________ in a review report so that it can be properly understood by ________________. False - CORRECT ANSWER Under certain circumstances, a reviewer may use information that was not available to the original appraiser to dispute the work of the appraiser. Must state this fact in the review report - CORRECT ANSWER If a client witholds the identity of the appraiser who completed the work under review, the reviewer True - CORRECT ANSWER The reviewer performing an appraisal review must not sign the work under review unless he/she intends to accept the responsibility as a co-signor of the work. A signed certification must be inserted into the workfile - CORRECT ANSWER If a reviewer provides an oral report of an appraisal review: Reject the value conclusion as lacking credibility due to the errors and inconsistencies found. - CORRECT ANSWER Indicates a reviewer DID NOT develop his own opinion of value in an appraisal review assignment: TRUE - CORRECT ANSWER A statement by a reviewer that "the value opinion stated in the appraisal report is not adequately supported" would be an indication that the reviewer DID NOT develop his or her own value opinion. This is a 2-Stage Assignment - CORRECT ANSWER If an appraiser is asked to develop an opinion of the quality of another appraiser's work and to agree or disagree with the value conclusion: Is not an opinion of value - CORRECT ANSWER An appraisal consulting assignment: Determine the quality of another appraiser's work - CORRECT ANSWER An appraisal consulting assignment does not specific - CORRECT ANSWER There are no __________ reporting options for written real property appraisal consulting reports. Intended use and intended users - CORRECT ANSWER The appropriate level of information in a real property appraisal consulting report is dictated by Both real and personal property - CORRECT ANSWER STANDARD 6, Mass Appraisal, applies to: STANDARD 3 - CORRECT ANSWER STANDARD 6 is most similar in structure to: It serves as an appraiser's acknowledgement of his/her ethical obligations. - CORRECT ANSWER In a written appraisal report prepared under STANDARD 6, what is the purpose of a signed certification? Notifications and not reports - CORRECT ANSWER Notifications sent to property owners of the results of a mass appraisal, which may be required by public policy, are considered STANDARDS 1 and 2 - CORRECT ANSWER An appraiser is engaged by her local count assessment board to complete an appraisal of an apartment building for ad valoram taxation purposes, which USPAP STANDARDS apply to the assignment? The objects that are most significant to the assignment results should be the focus of the analysis. - CORRECT ANSWER In a personal property appraisal assignment that includes multiple objects as part of the same assignment: A reasonable and applicable time - CORRECT ANSWER When appraising personal property, the appraiser must analyze prior sales of the subject over what time period? trade, different comparable data - CORRECT ANSWER There are distinct levels of __________ in personal property, and each may have _______________. 3 - CORRECT ANSWER Under STANDARD 8, a personal property appraiser has _________ different report options. All oral and written reports covered in USPAP - CORRECT ANSWER Which reports require a signed certification? Appraisal Report or Restricted Use Appraisal Report - CORRECT ANSWER A written business appraisal report must be prepared in accordance with: Oral appraisal report - CORRECT ANSWER An appraiser is permitted under USPAP to provide an __________of a business enterprise. Contain a reference to the inspection of the subject property. - CORRECT ANSWER An appraiser's certification in business or intangible asset appraisal report does not: Clarify, explain, or elaborate on a Rule or Standards Rule - CORRECT ANSWER What is the purpose of Statements on Appraisal Standards in USPAP? The Statement is applicable to all appraisal disciplines. - CORRECT ANSWER What is indicated if a Statement on Appraisal Standards is labeled with "ALL"? The Statement is applicable to real property appraisal. - CORRECT ANSWER What is indicated if a Statement on Appraisal Standards is labeled with "RP"? The name and version of the software program. - CORRECT ANSWER If an appraiser uses a commercial software program for Discounted Cash Flow (DCF) Analysis in an appraisal, what should the appraiser provide in the report? Be tested an checked for errors and reasonableness. - CORRECT ANSWER The results of DCF Analysis should: A prospective appraisal - CORRECT ANSWER Developing an opinion of value of a property as of a specific future date is: The context of the market conditions for the appraiser's opinion. - CORRECT ANSWER What does the effective date of an appraisal establish? Retrospective - CORRECT ANSWER What type of appraisal would be indicated by the phrase, "the market value of the subject property was $200,000? NOT - CORRECT ANSWER An appraiser who values an environmentally contaminated property is ________ required by the Competency Rule to be an expert in the scientific aspects of contamination. Should include explanation that provides context. - CORRECT ANSWER In an appraisal report, the use of terms that reflect a scale such as "good" or "average". Prohibited - CORRECT ANSWER The use of supported conclusions related to race, color, or religion in an appraisal may be ________________ by applicable law. beyond typical residential appraisal competency - CORRECT ANSWER The competency required to appraise subsidized housing extends: Not consistent with market value - CORRECT ANSWER A value opinion developed to reflect the most probable price under a forced sale condition is: Not an appraisal, an no workfile is required - CORRECT ANSWER An appraiser provides raw AVM output to a lender. The is: not interchangeable - CORRECT ANSWER All market value definitions are: Assignment conditions - CORRECT ANSWER Laws and regulations that apply to an appraisal for a federally regulated lending transaction would be considered: FALSE - CORRECT ANSWER Appraisals for federally regulated financial institutions often involve the use of the Jurisdictional Exception Rule. That the lender must engage the appraiser, and the appraiser cannot late "readdress" the report. - CORRECT ANSWER If a borrower attempts to engage an appraiser to complete an appraisal for a federally regulated lending transaction, the appraiser should disclose: [Show Less]
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USPAP 15-hour course Exam 173 Questions with Answers,100% CORRECT
USPAP 15-hour course Exam 173 Questions with Answers The concept of public trust means that an appraiser must act: - CORRECT ANSWER in the public's inte... [Show More] rest USPAP establishes standards that are applicable in the appraisal of: - CORRECT ANSWER real property, intangible property, and personal property Which statement is TRUE regarding The Appraisal Foundation and USPAP enforcement authority? - CORRECT ANSWER The Appraisal Foundation does not have the authority to enforce the requirements of USPAP. Which entity is responsible for establishing education and experience requirements for licensing and certification of appraisers? - CORRECT ANSWER Appraiser Qualifications Board (AQB) Qualification criteria for appraiser certification and recertification are disseminated to state appraisal boards by the: - CORRECT ANSWER Appraiser Qualifications Board (AQB) Which entity appoints members of the Foundation's independent Boards? - CORRECT ANSWER Board of Trustees (BOT) USPAP is developed, interpreted, and amended by the: - CORRECT ANSWER Appraisal Standards Board (ASB) Advisory Opinions are best described as - CORRECT ANSWER Not part of USPAP, but included as reference material The ASB is considering comment letters written by members of the public regarding a proposed revision to USPAP. When reviewing these comment letters, the ASB focuses on: - CORRECT ANSWER The reasoning and insight presented in the letter Which is NOT a responsibility of the Appraisal Subcommittee (ASC)? - CORRECT ANSWER Developing, amending, and interpreting USPAP Who is responsible for issuing credentials to individual appraisers? - CORRECT ANSWER State appraisal regulatory agencies Under FIRREA, USPAP is enforced by: - CORRECT ANSWER State appraiser licensing/certification agencies Which entity maintains the official national registry of state-certified and licensed appraisers? - CORRECT ANSWER Appraisal Subcommittee (ASC) In USPAP, the appraisal process is divided into two distinct types of activity: _________ and __________. - CORRECT ANSWER development, reporting Which step in the appraisal process involves communication of the appraiser's opinions and conclusions? - CORRECT ANSWER reporting The first step in the appraisal process is: - CORRECT ANSWER Identify the problem A preference or inclination that precludes an appraiser's impartiality, independence, or objectivity is: - CORRECT ANSWER bias An appraiser is not permitted to be ____________ when performing an appraisal. - CORRECT ANSWER an advocate conveys a mental state that does not favor one side over another at the outset of an investigation is what? - CORRECT ANSWER impartiality representing the cause or interest of another, even if that cause or interest does not necessarily coincide with one's own beliefs, opinions, conclusions, or recommendations is what? - CORRECT ANSWER advocacy If an appraiser assumes a condition to be true, and evidence supports that belief, although that fact is not certain, this is an example of: - CORRECT ANSWER an extraordinary assumption If an appraiser assumes a condition to be true that does not exist for the purposes of analysis, this is an example of: - CORRECT ANSWER hypothetical condition The terms extraordinary assumption and hypothetical condition: - CORRECT ANSWER Have different meanings within USPAP By using a published cost manual, an appraiser determines that the construction cost of a 2,500 square foot dwelling is $400,000. This figure represents the dwelling's: - CORRECT ANSWER cost "The monetary relationship between properties and those who buy, sell or use those properties" is the definition of: - CORRECT ANSWER value Which of these statements is TRUE about the USPAP definition of client? - CORRECT ANSWER The client may engage the appraiser through an agent. Which statement about intended users is TRUE? - CORRECT ANSWER The client is always an intended user Who makes the identification of the intended use in an assignment? - CORRECT ANSWER the appraiser An intended user is: - CORRECT ANSWER A party who is identified by the appraiser based on communication with the client at the time of the assignment A real estate broker completes a Comparative Market Analysis (CMA) on a property that he wants to list for sale. What would this be considered? - CORRECT ANSWER a valuation service Which is the broader category of services? - CORRECT ANSWER valuation services A workfile must be maintained for: - CORRECT ANSWER All appraisal and appraisal review assignments Appraisal practice includes only: - CORRECT ANSWER Valuation services provided by an individual acting as an appraiser In USPAP, each Standard is composed of: - CORRECT ANSWER Standards rules What is the stated purpose of USPAP? - CORRECT ANSWER Promote and maintain a high level of public trust in appraisal practice The PREAMBLE states that USPAP is: - CORRECT ANSWER For appraisers and users of appraisal services When obligated by law or regulation, an appraiser ________ comply with USPAP. - CORRECT ANSWER must One of an appraiser's obligations with regard to user expectations is to: - CORRECT ANSWER Identify the capacity in which he or she is performing Which statement is TRUE regarding the relationship between valuation services and appraisal practice? - CORRECT ANSWER Appraisal practice is a subset of valuation services. What could cause an appraiser to prepare an appraisal assignment in conformance with USPAP? - CORRECT ANSWER Law or regulation, agreement with the client, or voluntary choice by the appraiser USPAP states that in a situation when an individual is not required by law, regulation, or agreement to comply with USPAP: - CORRECT ANSWER The individual should still comply when he or she is acting as an appraiser When performing valuation services outside of appraisal practice, appraisers must be careful not to __________ the client and other intended users about their role. - CORRECT ANSWER mislead An individual is ______________ provide valuation services that involve advocacy while acting as an appraiser. - CORRECT ANSWER not permitted to Which statement regarding bias in an appraisal assignment is TRUE? - CORRECT ANSWER An appraiser is never permitted to perform an assignment with bias. The ethical obligations of USPAP apply to: - CORRECT ANSWER Individual appraisers only In appraisal practice, advocating the cause or interest of any party or issue is: - CORRECT ANSWER not permitted Prior to accepting an assignment, an appraiser must disclose any service he or she provided regarding the subject property for a period of _________. - CORRECT ANSWER three years An appraiser has appraised a property multiple times within the prior three years. He is asked by a prospective client to appraise the property again. Which statement is TRUE? - CORRECT ANSWER He must disclose the number of times he has appraised the property within the prior three years. An appraiser has been asked to complete an appraisal assignment. The fee is to be paid when and if the loan closes. According to USPAP, may the appraiser accept the assignment under these conditions? - CORRECT ANSWER No, the fee arrangement is an unethical contingency arrangement and violates the ETHICS RULE. The payment of fees by the appraiser in connection with the procurement of an assignment is: - CORRECT ANSWER Allowed if properly disclosed Confidential information under USPAP is information the appraiser receives from: - CORRECT ANSWER The client and is identified as confidential, but is not available from other sources The disclosure of confidential information to a third party is unethical unless: - CORRECT ANSWER authorized by the client A subject property's physical characteristics are ________ assignment results. - CORRECT ANSWER not An appraiser prepared an appraisal report in April 2015. He testified in court regarding the value of the property in January 2016. The decision was rendered in February 2016 and was appealed in March 2016. The appellate court heard the case in January 2017 and remanded the case for reconsideration by the lower court. Final disposition of the case occurred in September 2017. At a minimum, how long must the appraiser retain his workfile? - CORRECT ANSWER April 2020 (5 years after appraisal report, April 2015) Which statement about an appraiser's workfile is TRUE? - CORRECT ANSWER The workfile must be in existence prior to the issuance of a report. Which statement best describes the word "competency" as it relates to appraisal practice? - CORRECT ANSWER It is fundamental to the definition of "appraiser." An appraiser accepts an assignment for which she initially does not have the knowledge and experience. She notifies the client of her lack of knowledge and experience and takes the necessary steps to acquire the knowledge and experience. What else (if anything) must she do to comply with USPAP? - CORRECT ANSWER Disclose in the report her initial lack of competency and the steps taken to obtain competency In order to accept an assignment when an appraiser initially lacks the knowledge and experience to complete an assignment competently, he or she must: - CORRECT ANSWER Disclose to the client, prior to accepting the assignment, the lack of knowledge or experience Which statement about appraisal trainees and workfile obligations is TRUE? - CORRECT ANSWER Under USPAP, trainees have the same workfile obligations as licensed or certified appraisers. In order to determine the appropriate scope of work, the appraiser must ________ the problem to be solved. - CORRECT ANSWER identify The credibility of assignment results is measured in the context of: - CORRECT ANSWER the intended use Appraisers have broad _________ and significant _________ in determining the appropriate scope of work in an assignment. - CORRECT ANSWER Flexibility, responsibility Intended use is: - CORRECT ANSWER Identified by the appraiser on the basis of communication with the client Determining the scope of work requires: - CORRECT ANSWER Information obtained through communication with the client Identification of the intended use of an appraiser's opinions and conclusions is: - CORRECT ANSWER Necessary for determining the appropriate scope of work The responsibility for the scope of work decision rests with the: - CORRECT ANSWER appraiser In an assignment, the scope of work is an ___________ process. - CORRECT ANSWER ongoing Exclusion of a valuation approach that is not applicable in a given assignment is an example of: - CORRECT ANSWER a scope of work decision An appraiser's report must contain ____________ to allow intended users to understand the scope of work performed. - CORRECT ANSWER sufficient information An appraiser must not allow client objectives to cause the assignment results to be: - CORRECT ANSWER biased Scope of work has no disclosure requirements. - CORRECT ANSWER false If a client's objectives result in an appraiser developing biased assignment results: - CORRECT ANSWER the appraiser is solely responsible An appraiser's peers are defined as other appraisers who: - CORRECT ANSWER Have expertise and competency in a similar type of assignment What is the purpose of the JURISDICTIONAL EXCEPTION RULE? - CORRECT ANSWER To preserve the balance of USPAP if compliance with a part of USPAP is precluded by law or regulation If an assignment involves a jurisdictional exception, what must an appraiser do? - CORRECT ANSWER Identify the law, comply with the law, disclose in the report the part of USPAP that is voided, and cite in the report the law that caused the jurisdictional exception When a law or regulation precludes compliance with any part of USPAP, appraisers must: - CORRECT ANSWER Comply with that law or regulation If a law or regulation precludes an appraiser with complying with a part of USPAP: - CORRECT ANSWER A jurisdictional exception is automatically created Appraisers cannot be expected to be aware of all of the laws and regulations that apply to a particular assignment. - CORRECT ANSWER false As used in the JURISDICTIONAL EXCEPTION RULE, the term "law" includes ____________. - CORRECT ANSWER Constitutions, legislative and court-made law, and administrative rules and ordinances Which statement is FALSE regarding STANDARD 1? - CORRECT ANSWER It covers real and personal property appraisal development. The requirements of STANDARD 1 can be used as a checklist by an appraiser who is developing a real property appraisal. - CORRECT ANSWER true When does a series of minor errors potentially result in a USPAP violation? - CORRECT ANSWER When the series of errors affects the credibility of the results STANDARD 1 requires an appraiser to ____________ in developing a real property appraisal. - CORRECT ANSWER Use due diligence and due care Exposure time is: - CORRECT ANSWER Always assumed to precede the effective date of the appraisal When is identification of the intended use of an appraiser's opinions and conclusions necessary in an appraisal assignment? - CORRECT ANSWER it is necessary in all appraisal assignments If a borrower receives a copy of an appraisal report from a mortgage lender as a result of disclosure requirements: - CORRECT ANSWER This does not make the borrower an intended user If a client in an appraisal assignment wishes to remain anonymous, the appraiser must: - CORRECT ANSWER Document the client's identity in the workfile and state in the report that the client's identity has been withheld at the client's request What should an appraiser do if, during the course of an assignment, he or she becomes aware of a change in the intended use of the report? - CORRECT ANSWER Consider whether the extent of the planned development process and report are still appropriate What is the primary purpose of an appraiser making an inspection of the subject property? - CORRECT ANSWER To collect information about characteristics that are relevant to value An example of a relevant property characteristic that could affect a real property appraisal assignment would be: - CORRECT ANSWER The fact that the subject property is affected by an easement When appraising proposed improvements, what type of appraisal is permitted by USPAP? (Select the most complete answer. - CORRECT ANSWER both current and prospective When an appraiser provides a current value opinion on a proposed new building, he or she is utilizing a(an) _____________ that the proposed improvements are completed as of the effective date of the appraisal. - CORRECT ANSWER hypothetical condition An extraordinary assumption may be used in an assignment only if: - CORRECT ANSWER The appraiser has a reasonable basis for the extraordinary assumption An appraiser performs a research assignment, in which the appraiser completes research for a client but does not develop any opinions or conclusions. Which statement is TRUE regarding this assignment? - CORRECT ANSWER This is not an appraisal, but it is part of appraisal practice. Which statement is TRUE regarding USPAP and the three approaches to value? - CORRECT ANSWER An assignment condition may require an appraiser to develop an approach that he or she would otherwise consider unnecessary. When developing a sales comparison approach under USPAP: - CORRECT ANSWER The appraiser must analyze such data as are available to indicate a value conclusion When analyzing the subject property's sales history in a real property appraisal assignment, an appraiser is required by USPAP to analyze ______________. - CORRECT ANSWER All sales of the subject property that occurred within three years prior to the effective date of the appraisal If an appraiser is asked to appraise a property on which there is a known, current agreement of sale, the agreement must be: - CORRECT ANSWER analyzed in the appraisal When analyzing listings of the subject property in a real property appraisal assignment, USPAP requires an appraiser to analyze, at a minimum, ____________. - CORRECT ANSWER current listings When is it necessary to analyze prior listings of the subject property in a real property appraisal assignment? - CORRECT ANSWER When such analysis is relevant to the current assignment The process of reconciliation entails ___________. - CORRECT ANSWER Careful consideration of the quality and quantity of data Standards Rule 1-5 requires an appraiser to analyze the sales history of the comparable sales. - CORRECT ANSWER false STANDARD 2 sets forth requirements for: - CORRECT ANSWER Appraisal report content The use of standard appraisal reporting forms: - CORRECT ANSWER Is not required by STANDARD 2 The written report options set forth in Standards Rule 2-2 are - CORRECT ANSWER Appraisal Report and Restricted Appraisal Report What is the importance of stating the date of the report? - CORRECT ANSWER It establishes the appraiser's perspective on the market Which of the following is NOT required by USPAP to be in an Appraisal Report? - CORRECT ANSWER client's specific name In a Restricted Appraisal Report, the exclusion of any of the valuation approaches must be: - CORRECT ANSWER explained In an Appraisal Report, the scope of work used to develop the appraisal must be: - CORRECT ANSWER summarized Compared to a value opinion expressed in an Appraisal Report, a value opinion expressed in a Restricted Appraisal Report is: - CORRECT ANSWER equally credible Which statement is TRUE regarding a workfile for an assignment in which a Restricted Appraisal Report is provided? - CORRECT ANSWER The appraiser must maintain a workfile for this assignment In an appraisal assignment, an appraiser identifies an additional intended user in addition to the client. Does USPAP permit the appraiser to provide a Restricted Appraisal Report in this assignment? - CORRECT ANSWER no When an extraordinary assumption is used in an appraisal, the report must state the extraordinary assumption and: - CORRECT ANSWER state that its use may have affected the assignment results Does USPAP require an appraiser to disclose any significant real property appraisal assistance that was provided in an appraisal assignment? - CORRECT ANSWER yes, in all cases According to USPAP, any appraiser who signs any part of an appraisal report is required to: - CORRECT ANSWER sign the certification What is the purpose of including a signed certification in an appraisal report? - CORRECT ANSWER for the appraiser to acknowledge his or her ethical obligations An appraiser provides an oral report of a real property appraisal assignment. Which statement is CORRECT? - CORRECT ANSWER The appraiser must add a signed and dated certification to her appraisal workfile. A written summary of an oral appraisal report must be added to the appraiser's workfile ______________ the issuance of an oral report. - CORRECT ANSWER within a reasonable time after To the extent possible and appropriate, oral appraisal reports for real property must address the substantive matters that apply to a(n) - CORRECT ANSWER appraisal report Which statement is TRUE regarding a Recertification of Value? - CORRECT ANSWER It does not change the effective date of the value. If a client requests a more current valuation on a property that was the subject of a prior assignment, this is a(n) ____________. - CORRECT ANSWER new assignment USPAP requires an appraiser to obtain a release from a previous client before appraising the same property for a new client. - CORRECT ANSWER false An appraiser completes an appraisal for Bank A. Two months later, he is contacted by Bank B, who asks him to "readdress" his prior report to them. Which statement is TRUE about the appraiser's USPAP obligations? - CORRECT ANSWER He is not permitted to "readdress" the report to Bank B The client must be the only intended user for: - CORRECT ANSWER Restricted Appraisal Reports If a supervising appraiser makes changes to a trainee's appraisal report which the trainee does not agree with, the trainee should: - CORRECT ANSWER not sign the certification STANDARD 3 addresses the development of an appraisal review, and _________ addresses reporting of an appraisal review. - CORRECT ANSWER STANDARD 4 Appraisal review is the process of ___________ an opinion about the quality of another appraiser's work performed as part of an appraisal or appraisal review assignment. - CORRECT ANSWER developing Under USPAP, an appraisal review is performed by an appraiser when developing an opinion of the quality of another appraiser's work that was performed as part of _____________ assignment. - CORRECT ANSWER an appraisal only A reviewer is required to identify the appraiser who completed the work under review, unless: - CORRECT ANSWER the identity has been withheld from the client A review appraiser may use additional information that was not available to the original appraiser as long as the information: - CORRECT ANSWER is not used as the basis to discredit the original appraiser's value opinion Does USPAP permit a reviewer to use an extraordinary assumption in a review assignment? - CORRECT ANSWER yes Which statement is TRUE regarding USPAP and the appraisal review process for real property? - CORRECT ANSWER If the reviewer develops his or her own opinion of value, it must be developed under the requirements of STANDARD 1. An appraisal review can be a two-stage assignment: an appraisal review and a value opinion by the reviewer. - CORRECT ANSWER true A reviewer has been requested to also develop her own value opinion in a review assignment. Which statement is TRUE regarding this situation? - CORRECT ANSWER The reviewer may use a different scope of work than the original appraiser. Consistent with the reviewer's scope of work, a reviewer must develop an opinion regarding: (Select the most complete answer.) - CORRECT ANSWER The completeness, accuracy, and reasonableness of the work under review An appraiser performs an appraisal review and develops her own opinion of property value as part of the assignment. When reporting the assignment results, the appraiser needs to provide ____ signed certification(s). - CORRECT ANSWER one A reviewer is responsible for ensuring that there is __________ in a review report so that it can be properly understood by __________. - CORRECT ANSWER sufficient information, intended users If a client withholds the identity of the appraiser who completed the work under review, the reviewer: - CORRECT ANSWER must state this fact in the review report An appraisal review report: - CORRECT ANSWER must be separate from the work under review A reviewer performing an appraisal review must not sign the work under review unless he or she: - CORRECT ANSWER intends to accept the responsibility as a co-signer of the work If a reviewer provides an oral report of an appraisal review: - CORRECT ANSWER a signed certification must be inserted into the workfile A statement by a reviewer that "the value opinion stated in the appraisal report is not adequately supported" would be an indication that the reviewer ________ develop his or her own value opinion. - CORRECT ANSWER did not Which of these examples indicates that a reviewer DID NOT develop his own opinion of value in an appraisal review assignment? - CORRECT ANSWER I reject the value conclusion as lacking credibility due to the errors and inconsistencies found. If an appraiser is asked to develop an opinion of the quality of another appraiser's work and to agree or disagree with the value conclusion: - CORRECT ANSWER this is a two-stage assignment The process of valuing a universe of properties using standard methodology, employing common data, and allowing for statistical testing is: - CORRECT ANSWER mass appraisal STANDARD 5, Mass Appraisal, Development, applies to: - CORRECT ANSWER both real and personal property In a written mass appraisal report prepared under STANDARD 6, what is the purpose of a signed certification? - CORRECT ANSWER It serves as an appraiser's acknowledgement of his or her ethical obligations An appraiser is engaged by her local county assessment board to complete an appraisal on an apartment building for ad valorem taxation purposes. Which USPAP Standard(s) apply to this assignment? - CORRECT ANSWER STANDARDS 1 and 2 Notifications sent to property owners of the results of a mass appraisal, which may be required by public policy, are considered: - CORRECT ANSWER notifications, and not reports In a personal property appraisal assignment that includes multiple objects as part of the same assignment: - CORRECT ANSWER The objects that are more significant to the assignment results should be the focus of the analysis When appraising personal property, the appraiser must analyze prior sales of the subject over what time period? - CORRECT ANSWER a reasonable and applicable time An appraiser must recognize that there are distinct levels of trade in personal property, and each may have different comparable data. - CORRECT ANSWER true Under STANDARD 8, a personal property appraiser has ____ written report options. - CORRECT ANSWER two Which of the following reports require a signed certification? - CORRECT ANSWER All oral and written reports covered in USPAP When reporting the results of a business appraisal, which of these is NOT a permissible option for an appraiser? - CORRECT ANSWER limited report An appraiser's certification in a business or intangible asset appraisal report does NOT: - CORRECT ANSWER Contain a reference to the inspection of the subject property A written business appraisal report must be prepared in accordance with which of the following options? - CORRECT ANSWER Appraisal Report or Restricted Appraisal Report An evaluation of real property collateral, as defined in the Agencies' Guidelines, is considered _________ under USPAP. - CORRECT ANSWER an appraisal An appraiser is valuing an environmentally contaminated property. Does USPAP require the appraiser to be an expert in the scientific aspects of contamination? - CORRECT ANSWER no In an appraisal report, the use of terms that reflect a scale such as "good" or "average": - CORRECT ANSWER Should include explanation that provides context The use of supported conclusions related to race, color, or religion in an appraisal may be prohibited by applicable law. - CORRECT ANSWER true The competency required to appraise subsidized housing __________ typical residential appraisal competency. - CORRECT ANSWER extremes beyond An appraiser provides raw AVM output to a lender. This is: - CORRECT ANSWER Not an appraisal, and no workfile is required Which statement about the definition of market value is TRUE? - CORRECT ANSWER There are many different definitions of market value; each one is unique. A value opinion developed to reflect the most probable price under a forced-sale condition is: - CORRECT ANSWER Not consistent with the market value Laws and regulations that apply to an appraisal for a federally-regulated lending transaction would be considered: - CORRECT ANSWER Assignment conditions Appraisals for federally-regulated financial institutions often involve the use of the JURISDICTIONAL EXCEPTION RULE. - CORRECT ANSWER false If an appraiser uses a commercial software program for Discounted Cash Flow (DCF) analysis in an appraisal, what should the appraiser provide in the report? - CORRECT ANSWER The name and version of the software program The results of DCF analysis should: - CORRECT ANSWER Be tested and checked for errors and reasonableness Developing an opinion of value of a property as of a specified future date is: - CORRECT ANSWER a prospective appraisal What type of appraisal would be indicated by the phrase, "the market value of the subject property was $200,000"? - CORRECT ANSWER retrospective An appraiser is using a computer program as a computer-assisted valuation tool and this program makes an error that affects the valuation. Who is responsible for this error? - CORRECT ANSWER the appraiser What does the effective date of an appraisal establish? - CORRECT ANSWER The context of the market conditions for the appraiser's opinions [Show Less]
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National USPAP Course Exam 172 Questions with Answers,100% CORRECT
National USPAP Course Exam 172 Questions with Answers The Appraisal Foundation has the authority to enforce the requirements of USPAP. - CORRECT ANSWER ... [Show More] False Currently, the boards within the Appraisal Foundation include: - CORRECT ANSWER Appraisal Standards Board, Appraisal Qualifications Board, Board of Trustees Which Foundation board is responsible for USPAP? - CORRECT ANSWER Appraisal Standards Board Qualification criteria for appraiser certification and recertification are disseminated to state appraisal boards by the: - CORRECT ANSWER Appraisal Qualifications Board Which entity is responsible for establishing education and experience requirements for licensing and certification of appraisers? - CORRECT ANSWER Appraisal Qualifications Board Which entity appoints members of the AQB and ASB? - CORRECT ANSWER Board of Trustees USPAP is written, amended, and interpreted by the: - CORRECT ANSWER Appraisal Standards Board Advisory Opinions are best described as: - CORRECT ANSWER not part of USPAP, but included as reference material Who is responsible for issuing credentials to individual appraisers? - CORRECT ANSWER State appraisal regulatory agencies Which entity maintains the official National Registry of state-certified and licensed appraisers? - CORRECT ANSWER Appraisal Subcommittee (ASC) Which is NOT a responsibility of the Appraisal Subcommittee (ASC)? - CORRECT ANSWER writing, interpreting and amending USPAP USPAP is enforced by: - CORRECT ANSWER state appraiser licensing/certification agencies Which part of USPAP establishes the requirements for workfile content for an appraisal or appraisal review assignment? - CORRECT ANSWER Record Keeping Rule Why are USPAP Advisory Opinions issued? - CORRECT ANSWER to offer advice Which of these is considered an integral part of USPAP and has the same weight as the components they address? - CORRECT ANSWER comments The first step in the appraisal process is: - CORRECT ANSWER identify the problem In USPAP, the appraisal process is divided into two distinct types of activity: _________ and __________. - CORRECT ANSWER development, reporting Which step in the appraisal process involves communication of the appraiser's opinions and conclusions? - CORRECT ANSWER reporting The PREAMBLE states that USPAP intended to benefit: - CORRECT ANSWER appraisers and users of appraisal services When obligated by law or regulation, an appraiser _______ comply with USPAP. - CORRECT ANSWER must What is the stated purpose of USPAP? - CORRECT ANSWER Promote and maintain a high level of public trust in appraisal practice To which property types does USPAP apply? - CORRECT ANSWER Both tangible and intangible property An appraiser has the professional responsibility to identify the capacity in which he or she is performing. - CORRECT ANSWER true The requirement for USPAP compliance in an appraisal assignment could be the result of - CORRECT ANSWER law or regulation, voluntary choice by the appraiser, or agreement with the client A valuation service that is premised upon advocacy: - CORRECT ANSWER cannot be performed by an individual acting as an appraiser When performing valuation services outside of appraisal practice, an individual must be careful not to __________ the client and other intended users about his or her role. - CORRECT ANSWER mislead USPAP states that in a situation when an individual is not required by law, regulation, or agreement to comply with USPAP: - CORRECT ANSWER the individual should still comply when he or she is acting as an appraiser A preference or inclination that precludes an appraiser's impartiality, independence, or objectivity is: - CORRECT ANSWER bias If an appraiser assumes a condition to be true, and evidence supports that belief, although that fact is not certain, this is an example of: - CORRECT ANSWER an extraordinary assumption If an appraiser assumes a condition to be true that does not exist for the purposes of analysis, this is an example of: - CORRECT ANSWER hypothetical condition By using a published cost manual, an appraiser determines that the construction cost of a 2,500 square foot dwelling is $400,000. This figure represents the dwelling's: - CORRECT ANSWER cost "The monetary relationship between properties and those who buy, sell or use those properties" is the definition of: - CORRECT ANSWER value An appraiser receives a copy of a signed sales agreement for an office building, which specifies the agreed-upon amount of $950,000. What does this figure represent? - CORRECT ANSWER price An appraiser performs an appraisal assignment and develops an opinion of value. This value opinion is - CORRECT ANSWER an assignment result It is permissible for an appraiser to be engaged in an assignment by an agent, who is acting on behalf of the client. - CORRECT ANSWER true According to USPAP, the party or parties who engage an appraiser in a specific assignment defines the: - CORRECT ANSWER client Who is responsible for making the identification of the intended use in an assignment? - CORRECT ANSWER the appraiser An intended user is: - CORRECT ANSWER A party who is identified by the appraiser based on communication with the client at the time of the assignment Which is the broader category of services? - CORRECT ANSWER valuation services A workfile must be maintained for: - CORRECT ANSWER appraisal and appraisal review assignments only Appraisal practice includes only: - CORRECT ANSWER valuation services provided by an individual acting as an appraiser A real estate broker completes a Comparative Market Analysis (CMA) on a property that she wants to list for sale. What would this be considered? - CORRECT ANSWER a valuation service An appraiser is permitted to be biased when performing an appraisal, as long as the bias is properly disclosed. - CORRECT ANSWER false "The type and extent of research and analyses in an appraisal or appraisal review assignment" is the definition of ___________. - CORRECT ANSWER scope of work In USPAP, each Standard is composed of: - CORRECT ANSWER standards rules The ethical obligations of USPAP apply to: - CORRECT ANSWER Individual appraisers only In appraisal practice, advocating the cause or interest of any party or issue is: - CORRECT ANSWER not permitted An appraiser must disclose any service he or she provided regarding the subject property for a period of _________ prior to agreeing to perform the assignment. - CORRECT ANSWER 3 years An appraiser is disclosing to a client the fact that she had previously appraised the subject property within the prior three years. When making this disclosure, the appraiser must be careful to: - CORRECT ANSWER not disclose confidential information from the previous assignment An appraiser has been asked to complete an appraisal assignment. The fee is to be paid only if the loan closes. According to USPAP, may the appraiser accept the assignment under these conditions? - CORRECT ANSWER No, the fee arrangement is an unethical contingency arrangement and violates the Ethics Rule In a real property appraisal assignment prepared for a mortgage lender, an appraiser is permitted by USPAP to base his compensation for an appraisal assignment on: - CORRECT ANSWER whether or not the report is transmitted to the client by the due date In most cases, an appraiser may share __________ from an appraisal assignment with other appraisers without obtaining the client's consent. - CORRECT ANSWER physical characteristics The Confidentiality section of the ETHICS RULE prohibits an appraiser from disclosing confidential information or _________ to unauthorized parties. - CORRECT ANSWER assignment results An appraiser concludes that a subject property has functional inadequacies. This conclusion is: - CORRECT ANSWER an assignment result and must be treated as confidential An appraiser prepared an appraisal report in April 2019. He testified in court regarding the value of the property in January 2020. The decision was rendered in February 2020 and was appealed in April 2020. The appellate court heard the case in January 2021 and remanded the case for reconsideration by the lower court. Final disposition of the case occurred in September 2021. At a minimum, how long must the appraiser retain his workfile? - CORRECT ANSWER April 2024 An appraiser completes an appraisal and transmits the report to the client. The report copy retained in the appraiser's workfile does not have a signature affixed to it. Is this permissible under USPAP? - CORRECT ANSWER No, a true copy must include a signature Is an appraiser permitted by USPAP to create a workfile after transmitting the report to the client? - CORRECT ANSWER No Which statement best describes the word "competency" as it relates to appraisal practice? - CORRECT ANSWER It is fundamental to the definition of "appraiser" In order to perform an assignment for which an appraiser initially lacks the knowledge and experience to complete competently, the appraiser must: - CORRECT ANSWER disclose to the client, prior to agreeing to perform the assignment, the lack of knowledge or experience Three appraisers work together on an appraisal assignment. What would NOT be an appropriate workfile arrangement under USPAP? - CORRECT ANSWER the workfile is posted on the internet, so that anyone who wants to see it will be able to access it The requirement to create and maintain a workfile for an appraisal or appraisal review assignment applies to: - CORRECT ANSWER all appraisers, regardless of credential level The credibility of assignment results is measured in the context of: - CORRECT ANSWER the intended use In order to determine the appropriate scope of work, the appraiser must ________ the problem to be solved. - CORRECT ANSWER identify Appraisers have broad _________ and significant _________ in determining the appropriate scope of work in an assignment. - CORRECT ANSWER flexibility, responsibilities Examples of assignment conditions include: - CORRECT ANSWER hypothetical conditions, extraordinary assumptions, and laws and regulations Intended use is: - CORRECT ANSWER Identified by the appraiser on the basis of communication with the client Identification of the intended use of an appraiser's opinions and conclusions is: - CORRECT ANSWER necessary for determining the appropriate scope of work In an appraisal or appraisal review assignment, the scope of work is an ___________ process. - CORRECT ANSWER ongoing The responsibility for determining an appropriate scope of work rests with the: - CORRECT ANSWER appraiser An appraiser's report must contain ____________ to allow intended users to understand the scope of work performed. - CORRECT ANSWER sufficient information An appraiser must not allow client objectives to cause the assignment results to be _________. - CORRECT ANSWER biased If a client's objectives result in an appraiser developing biased assignment results: - CORRECT ANSWER the appraiser is solely responsible The SCOPE OF WORK RULE provides appraisers with significant flexibility. Along with that flexibility comes: - CORRECT ANSWER responsibility An appraiser is engaged to appraise a single-unit dwelling. Upon inspection of the property, the appraiser realizes it is a three-unit dwelling. The appraiser's best course of action is: - CORRECT ANSWER reconsider the scope of work before proceeding An appraiser's peers are defined as other appraisers who: - CORRECT ANSWER have expertise and competency in a similar type of assignment In reporting the scope of work in an appraisal or appraisal review report: - CORRECT ANSWER the report must contain sufficient information so that intended users understand the scope of work If an assignment involves a jurisdictional exception, what must an appraiser do? - CORRECT ANSWER Identify the law, comply with the law, disclose in the report the part of USPAP that is voided, and cite in the report the law that caused the jurisdictional exception What is the purpose of the JURISDICTIONAL EXCEPTION RULE? - CORRECT ANSWER To provide a saving or severability clause to preserve the balance of USPAP If USPAP compliance is mandated by federal law, no state or local law can create a jurisdictional exception. - CORRECT ANSWER true When a law or regulation precludes compliance with any part of USPAP, appraisers must: - CORRECT ANSWER comply with that law or regulation The use of the JURISDICTIONAL EXCEPTION RULE in an assignment is a matter of choice by an appraiser. - CORRECT ANSWER false As used in the JURISDICTIONAL EXCEPTION RULE, the term "law" includes ____________. - CORRECT ANSWER legislative laws, administrative rules and ordinances, and court-made laws Is it permissible to use instructions from an attorney as a basis for a jurisdictional exception? - CORRECT ANSWER no When does a jurisdictional exception occur in an assignment? - CORRECT ANSWER it is automatic when a law precludes compliance with a part of USPAP A state passes a law requiring appraisers to keep their workfiles for 10 years after preparation. Is this a jurisdictional exception under USPAP? - CORRECT ANSWER no Which of these would be considered an example of a jurisdictional exception in an appraisal assignment? - CORRECT ANSWER A probate court paying appraisers based on the value of the subject property The requirements of STANDARD 1 can be used as a checklist by an appraiser who is developing a real property appraisal. - CORRECT ANSWER true What is false regarding Standard 1? - CORRECT ANSWER it covers real and personal property development An appraiser's client wishes to remain anonymous, and asks the appraiser not to include client's identity in an appraisal report. What should the appraiser do? - CORRECT ANSWER Omit the client's identity from the report but document the client's identity in the workfile If a mortgage borrower receives a copy of an appraisal report from a mortgage lender as a result of disclosure requirements: - CORRECT ANSWER this does not make the borrower an intended user When does a series of minor errors potentially result in a USPAP violation? - CORRECT ANSWER When the series of errors affects the credibility of the results Exposure time is: - CORRECT ANSWER an opinion developed by an appraiser What is true regarding exposure time? - CORRECT ANSWER It is always assumed to precede the effective date of the appraisal. When appraising a property with proposed improvements, what type of value opinion is permitted by USPAP? - CORRECT ANSWER both current and prospective values An example of a relevant property characteristic that could affect a real property appraisal assignment would be: - CORRECT ANSWER The fact that the subject property is affected by an easement What is the primary purpose of an appraiser making an inspection of the subject property? - CORRECT ANSWER To collect information about characteristics that are relevant to value When an appraiser provides a current value opinion on a proposed new building, he or she is utilizing a(an) _____________ that the proposed improvements are completed as of the effective date of the appraisal. - CORRECT ANSWER hypothetical condition An extraordinary assumption may be used in an assignment only if: - CORRECT ANSWER required to develop credible results An unacceptable assignment condition would be a condition that: - CORRECT ANSWER Limits report content, resulting in a misleading report, Limits the scope of work to the extent that the value opinion is not credible, and precludes an appraiser's impartiality When developing a sales comparison approach under USPAP: - CORRECT ANSWER the appraiser must analyze such data as are available to indicate a value conclusion Which statement is TRUE regarding USPAP and the three approaches to value? - CORRECT ANSWER An assignment condition may require an appraiser to develop an approach that he or she would otherwise consider unnecessary. When analyzing listings of the subject property in a real property appraisal assignment, USPAP requires an appraiser to analyze, at a minimum, ____________. - CORRECT ANSWER Current listings When analyzing the subject property's sales history in a real property appraisal assignment, an appraiser is required by USPAP to analyze ______________. - CORRECT ANSWER All sales of the subject property that occurred within three years prior to the effective date of the appraisal When is it necessary to analyze prior listings of the subject property in a real property appraisal assignment? - CORRECT ANSWER When such analysis is relevant to the current assignment In the development of an appraisal, the appraiser is required to: - CORRECT ANSWER Not commit a substantial error that significantly affects the appraisal The process of reconciliation entails ___________. - CORRECT ANSWER Careful consideration of the quality and quantity of data STANDARD 2 sets forth requirements for - CORRECT ANSWER Appraisal report content The use of standard appraisal reporting forms - CORRECT ANSWER is not required by Standard 2 What is the essential difference between the two reporting options? - CORRECT ANSWER the content and level of information The two written report options stated in Standards Rule 2-2 are - CORRECT ANSWER Appraisal Report and Restricted Appraisal Report An appraiser's client requests anonymity and asks that their identity not appear in the Appraisal Report that is prepared for the assignment. What must the appraiser do? - CORRECT ANSWER State in the report that the client's identity has been withheld at the client's request, document the identity of the client in the workfile, use care not to violate the Confidentiality section of the ETHICS RULE When reporting the results of an appraisal, dates that must be included are - CORRECT ANSWER effective date and report date An appraiser determines that the cost approach is not necessary in an appraisal assignment, and therefore does not develop the approach. In the Restricted Appraisal Report for the assignment, what must the appraiser do? - CORRECT ANSWER state the reason for the exclusion of the approach In an Appraisal Report, the scope of work used to develop the appraisal must be - CORRECT ANSWER summarized All written appraisal reports must contain - CORRECT ANSWER a signed certification An appraiser is preparing a Restricted Appraisal Report in a situation where there are intended users in addition to the client. Which statement is true regarding this situation? - CORRECT ANSWER These additional intended users must be identified in the report by name. When an extraordinary assumption is used in an appraisal, the report must state the extraordinary assumption and - CORRECT ANSWER state that its use may have affected the assignment results What is the purpose of including a signed certification in an appraisal report? - CORRECT ANSWER For the appraiser to acknowledge his or her ethical obligations According to USPAP, any appraiser who signs any part of an appraisal report is required to - CORRECT ANSWER sign a certification To the extent possible and appropriate, oral appraisal reports for real property must address the substantive matters that apply to a(n) - CORRECT ANSWER Appraisal Report An appraiser provides an oral report of a real property appraisal. Which statement is CORRECT? - CORRECT ANSWER The appraiser must add a signed and dated certification to her appraisal workfile. If a client requests a more current valuation on a property that was the subject of a prior assignment, this is a(n) ____________. - CORRECT ANSWER new assignment An appraiser completes an appraisal for Bank A. Two months later, he is contacted by Bank B, who asks him to "readdress" his prior report to them. Which statement is TRUE about the appraiser's USPAP obligations? - CORRECT ANSWER He is not permitted to "readdress" the report to Bank B. USPAP requires an appraiser to obtain a release from a previous client before appraising the same property for a new client. - CORRECT ANSWER False If a supervising appraiser makes changes to a trainee's appraisal report which the trainee does not agree with, the trainee should - CORRECT ANSWER not sign the certification trainee assisted a senior appraiser in an appraisal assignment, but the trainee appraiser does not sign a certification. The trainee's name is stated in the certification as having provided significant appraisal assistance. Is a description of the trainee's assistance also required to be in the certification? - CORRECT ANSWER no In STANDARD 3, the word "reviewer" means: - CORRECT ANSWER an appraiser who is performing an appraisal review When developing an appraisal review, USPAP requires a reviewer to identify the appraiser who completed the work under review: - CORRECT ANSWER unless the identity has been withheld by the client A reviewer is performing an appraisal review on an appraisal report prepared on a residential property. The reviewer is required by USPAP to: - CORRECT ANSWER Identify whether it is necessary to develop his or her own value opinion as part of the appraisal review assignment In performing an appraisal review, a reviewer may use information that was not available to the original appraiser in the normal course of business, as long as the information: - CORRECT ANSWER is not used in the development of the reviewer's opinion of the quality of the work under review When performing an appraisal review, a reviewer finds information that was available to the original appraiser, but the original appraiser did not consider it when developing the appraisal under review. Does USPAP permit the reviewer to use this information in developing an opinion of the quality of the work under review? - CORRECT ANSWER Yes Which statement is TRUE regarding USPAP and the appraisal review process for real property? - CORRECT ANSWER If the reviewer develops his or her own opinion of value, it must be developed under the requirements of STANDARD 1. An appraisal review can be a two-stage assignment, which includes both an appraisal review and a value opinion by the reviewer. - CORRECT ANSWER true Is a reviewer permitted to file a complaint with a state appraisal regulatory agency without the client's consent? - CORRECT ANSWER yes An appraisal review report - CORRECT ANSWER must be separate from the work under review A reviewer is preparing an appraisal review report using a pre-printed form that was created by the client. The form does not have space for all of the minimum report content requirements of USPAP. What should the reviewer do? - CORRECT ANSWER Supplement the form with the required content items A reviewer is responsible for ensuring that there is __________ in a review report so that it can be properly understood by __________. - CORRECT ANSWER Sufficient information; intended users A reviewer is reviewing a real property appraisal and has developed her own value opinion that differed from the value opinion in the work under review. When reporting her value opinion in the appraisal review report, what must the reviewer do? - CORRECT ANSWER Provide data and analysis that matches the reporting requirements for an Appraisal Report A reviewer is preparing an appraisal review report. The identity of the appraiser who completed the work under review was not provided by the reviewer's client. What should the reviewer do? - CORRECT ANSWER State, in the appraisal review report, that the appraiser's identity was withheld by the client Is a reviewer permitted by USPAP to use information that was not available to the original appraiser to discredit the work under review? - CORRECT ANSWER no As part of an appraisal review assignment, a reviewer develops his own opinion of value that differs from the original appraiser's value opinion. How many certifications does USPAP require in the appraisal review report for this assignment? - CORRECT ANSWER 1 If a reviewer provides an oral report of an appraisal review - CORRECT ANSWER a signed certification must be inserted into the workfile A reviewer performing an appraisal review must not sign the work under review unless he or she intends to accept the responsibility as a co-signer of the work. - CORRECT ANSWER true What indicates that a reviewer DID NOT develop his own opinion of value in an appraisal review assignment? - CORRECT ANSWER I reject the value conclusion as lacking credibility due to the errors and inconsistencies found. If an appraiser is asked to develop an opinion of the quality of another appraiser's work and to agree or disagree with the value conclusion - CORRECT ANSWER this is a two-stage assignment STANDARD 5 is most similar in structure to: - CORRECT ANSWER Standard 1 STANDARD 5, Mass Appraisal, Development, applies to: - CORRECT ANSWER Both real and personal property Notifications sent to property owners of the results of a mass appraisal, which may be required by public policy, are considered: - CORRECT ANSWER Notifications, and not reports An appraiser is engaged by her local county assessment board to complete an appraisal on an apartment building for ad valorem taxation purposes. Which USPAP STANDARD(S) apply to this assignment? - CORRECT ANSWER STANDARDS 1 and 2 In a personal property appraisal assignment that includes multiple objects as part of the same assignment: - CORRECT ANSWER The objects that are more significant to the assignment results should be the focus of the analysis An appraiser must recognize that there are distinct levels of trade in personal property, and each may have different comparable data. - CORRECT ANSWER True When appraising personal property, the appraiser must analyze prior sales of the subject over what time period? - CORRECT ANSWER A reasonable and applicable time An appraiser is developing an appraisal and will be reporting it in a Restricted Appraisal Report. Because this less detailed reporting option is being used, is the appraiser permitted to use an abbreviated appraisal development process? - CORRECT ANSWER no Under STANDARD 8, a personal property appraiser has ____ written report options. - CORRECT ANSWER 2 An appraiser's certification in a business or intangible asset appraisal report does not: - CORRECT ANSWER Contain a reference to the inspection of the subject property* A written business appraisal report must be prepared in accordance with: - CORRECT ANSWER Appraisal Report or Restricted Appraisal Report An appraisal that takes into consideration the full effect of known environmental contamination would be considered: - CORRECT ANSWER "As-is" In an appraisal report, the use of terms that reflect a scale such as "good" or "average": - CORRECT ANSWER Should include explanation that provides context The competency required to appraise subsidized housing extends beyond typical residential appraisal competency. - CORRECT ANSWER true An appraiser agrees to provide a market value appraisal for a client. What is true about this situation? - CORRECT ANSWER It is essential that the appraiser identify the source of the definition of value to be used. An appraiser provides raw AVM output to a client. This is: - CORRECT ANSWER Not an appraisal, and no workfile is required If a borrower attempts to engage an appraiser to complete an appraisal for a federally-regulated lending transaction, the appraiser should disclose: - CORRECT ANSWER That the lender must engage the appraiser, and that the appraiser cannot later "readdress" the report Regulations and guidelines that apply to an appraisal for a federally-regulated lending transaction are: - CORRECT ANSWER Assignment conditions What does the effective date of an appraisal establish? - CORRECT ANSWER The context of the value opinion What type of appraisal would be indicated by the phrase, "On September 10, 2012, the market value of the subject property was $200,000"? - CORRECT ANSWER Retrospective Developing an opinion of value of a property as of a specified future date is: - CORRECT ANSWER A prospective appraisal According to AO-33, the results of discounted cash flow (DCF) analysis should: - CORRECT ANSWER Be tested and checked for errors and reasonableness A mortgage client suggested to an appraiser that if he would increase the value conclusion from $520,000 to $525,000 on an appraisal there would be more assignments coming his way. Should the appraiser change his opinion of value since it is less than a 1% difference? - CORRECT ANSWER No. An appraiser must perform assignments without accommodation of personal interests (promise of additional work). Additionally, an appraiser must not advocate the cause or interest of any party (either the mortgage broker or the homeowner). A client wants to know the current value, as though repaired, of a property that has been damaged due to flooding from a severe storm. What type of assignment condition should the appraiser use? - CORRECT ANSWER The appraiser should use a hypothetical condition because the property as if repaired does not currently exist as of the effective date. A client has repaired a property that was damaged due to flooding. Several neighboring properties that were similarly flooded and later repaired soon developed mold problems. The client's property shows no evidence of mold as of the effective date. What type of assignment condition should the appraiser use if the client wants a current value opinion of the property? - CORRECT ANSWER The appraiser should use an extraordinary assumption, because as of the date of value, the fact of the potential condition (i.e., mold) is unknown, and it is reasonable to believe the current condition is true. An appraiser performed the cost approach in an appraisal of a new warehouse. The buyer paid $1.9 million for the building and site. The property's market value was $2 million. Identify each of the three components: the reproduction cost developed by the appraiser, the $1.9 million figure, and the $2 million figure as (a) fact, (b) an estimate of fact, or (c) an opinion in relation to the appraisal of this property. - CORRECT ANSWER The reproduction cost developed by the appraiser is an estimate of fact (b). The $1.9 million sale is the price as a stated fact (a). The $2 million value of the property is the appraiser's opinion (c). A client requests "a number" over the phone in advance of the written appraisal report. How should an appraiser handle this type of request? - CORRECT ANSWER This is an additional report - an oral report. A summary of the oral report and a signed and dated certification must be included in the workfile. Additionally, the workfile must contain a true copy of the written report that is delivered to the client. [Show Less]
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15-Hour National USPAP Exam 102 Questions with Answers,100% CORRECT
15-Hour National USPAP Exam 102 Questions with Answers What are the 4 sections of USPAP? - CORRECT ANSWER -preamble -definitions -rules -standards ... [Show More] (including standards rules) Benefits of USPAP - CORRECT ANSWER -provides a common basis for comparison -provides a reference source for all users of the document -provides a basis for uniform enforcement for state regulatory agencies -provides a reason for clients, other intended users, and the public to place their trust in the services performed by professional appraisers What does the Appraisal Foundation help do? - CORRECT ANSWER prevent financial losses in federally insured mortgages by setting stringent qualifications and standards for appraisers involved in real estate transactions The Appraisal Foundation is organized into what 3 main boards? - CORRECT ANSWER -board of trustees (BOT) -appraiser qualifications board (AQB) -appraiser standards board (ASB) Board of Trustees (BOT) - CORRECT ANSWER provides volunteer leadership and oversight for the Foundation Appraiser Qualifications Board (AQB) - CORRECT ANSWER -an independent board of the Foundation -sets minimum qualification criteria that must be met before entering the profession and qualifications to maintain a credential Appraiser Standards Board (ASB) - CORRECT ANSWER -an independent board of the Foundation -establishes the USPAP on an annual basis When did the U.S. Congress enact FIRREA (Financial Institutions Reform, Recovery, and Enforcement Act)? - CORRECT ANSWER 1989 What created the ASC of the FFIEC (Federal Financial Institutions Examination Council)? - CORRECT ANSWER Title XI of FIRREA What is one of ASC's core functions? - CORRECT ANSWER monitor the requirements established by state regulatory agencies for certification and licensing of appraisers qualified to perform appraisals in connection with federally related transactions What was USPAP created to do? - CORRECT ANSWER to promote and preserve public trust in professional appraisal practice The concept of trust obligates the appraiser to act in the public's interest, which means the appraiser must act with... - CORRECT ANSWER -independence -impartiality -objectivity -competency -integrity Do the Appraisal Foundation and its boards have any legal oversight or enforcement authority in any jurisdiction? - CORRECT ANSWER no USPAP achieves legal authority by... - CORRECT ANSWER adoption, citation, or implementation by government agencies through regulation or administrative actions, or by private enterprise in the form of contract requirements The Foundation is structured to... - CORRECT ANSWER reflect its position within the appraisal profession as an organization of organizations 3 categories of Sponsors the Foundation has - CORRECT ANSWER -appraisal sponsors -affiliate sponsors -international sponsors Appraisal Sponsors - CORRECT ANSWER consists of non-profit appraisal organizations servings appraiser Affiliate Sponsors - CORRECT ANSWER consist of non-profit appraisal organizations serving those with an interest in valuation, primarily users of appraisal services International Sponsors - CORRECT ANSWER consists of either non-profit or non-stock organizations based outside the U.S. with an interest in valuation 2 advisory councils the Appraisal Foundation has - CORRECT ANSWER -The Appraisal Foundation Advisory Council (TAFAC) -The Industry Advisory Council (IAC) The Appraisal Foundation Advisory Council (TAFAC) - CORRECT ANSWER made up of representatives from non-profit organizations and government entities The Industry Advisory Council (IAC) - CORRECT ANSWER has members from for-profit organizations The Appraisal Foundation develops... - CORRECT ANSWER -recruitment programs to fulfill the growing need for real property -simulated experience training to offer additional supervisory training opportunities -resources for veterans who are interested in entering the appraisal profession -outreach to universities to recruit students into the profession Board of Trustees (BOT) has 3 primary functions: - CORRECT ANSWER -appoints members to its independent boards -secures funding for TAF operations -monitors performance and oversight of the Foundation and its Boards and Advisory Councils What is the governing body of the Foundation? - CORRECT ANSWER Board of Trustees What does the AQB do? - CORRECT ANSWER establishes minimum education and experience for certification and recertification of real property appraisers and supervisors What does the ASB do? - CORRECT ANSWER -writes, amends, and interprets USPAP -responsible for the subject, content, and substance of USPAP and other communications related to appraisal standards Most changes to USPAP have been the result of what? - CORRECT ANSWER unsolicited letters or response to exposure drafts from a variety of sources, including appraisal organizations, government agencies, client groups, work groups, appraisers, and members of the public Advisory Opinions are described as... - CORRECT ANSWER not part of USPAP, but included as reference material ASC has what duty? - CORRECT ANSWER ensure that the government has sufficient controls in place over all real property appraisal activity to protect the federally regulated financial institutions from loss What is FFIEC (Federal Financial Institutions Examination Council)? - CORRECT ANSWER a formal interagency body empowered to prescribe uniform principles, standards, and report forms, and to make recommendations to promote uniformity in the supervision of financial institutions ASC has 7 members, each appointed by the head of his or her agency and they represent: - CORRECT ANSWER -Board of Governors of the Federal Reserve System (FRB) -Office of the Comptroller of the Currency (OCC) -Federal Deposit Insurance Corporation (FDIC) -National Credit Union Administration (NCUA) -Department of Housing and Urban Development (HUD) -Federal Housing Finance Agency (FHFA) -Consumer Financial Protection Bureau (CFPB) Responsibilities of the ASC - CORRECT ANSWER -the ASC is not part of the Foundation but has the authority to monitor the activities of the Foundation, including both the ASB and AQB in regard to real property issues -ASC administers grants to the Foundation that are used to support, in part, the real property-related work of the AQB and ASB ASC operations - CORRECT ANSWER are funded through license renewal payments in the form of a National Registry fee and by AMC Registry fees State appraiser regulatory agencies responsibilities - CORRECT ANSWER -validating qualifications of applicants, issuing credentials to certified individuals, and overseeing renewals of credentials in the form of continuing education -taking disciplinary action against appraisers who violate USPAP or other appraisal standards -administering registries of appraisal management companies (AMCs) When does USPAP apply? - CORRECT ANSWER compliance is required when either the service or the appraiser is obligated to comply by law, regulation, or agreement with the client or other intended users What is the purpose of the preamble of USPAP? - CORRECT ANSWER -identifies the purpose of USPAP -states that USPAP is intended to benefit providers of appraisal services (appraisers) and users of appraisal services Valuation Service - CORRECT ANSWER a service pertaining to an aspect of property value, regardless of the type of service and whether it is performed by appraisers or by others Acting as an appraiser or performing a service "as an appraiser" means... - CORRECT ANSWER -representing oneself as an appraiser -an expectation of appraisal competence in the service being provided Which entity appoints member of the AQB and ASB? - CORRECT ANSWER BOT (Board of Trustees) Market Value - CORRECT ANSWER -USPAP does not endorse any specific definition of market value or source Bias - CORRECT ANSWER a preference or precludes an appraiser's impartiality, independence or objectivity in an assignment Extraordinary assumption - CORRECT ANSWER -an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser's opinions and conclusions -involves a situation directly related to a specific assignment as of the effective date of the assignment results Hypothetical condition - CORRECT ANSWER -a condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis -used when a property is appraised contrary to its current known condition Exposure time - CORRECT ANSWER an opinion, based on supporting market data, of the length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal Cost - CORRECT ANSWER the actual of estimate amount required to create, reproduce, replace or obtain a property Price - CORRECT ANSWER -the amount asked, offered, or paid for a property -becomes fact once it is stated Value - CORRECT ANSWER -the monetary relationship between properties and those who buy, sell or use those properties, expressed as an opinion of the worth of a property at a given time -value is always an opinion and never a fact Appraiser - CORRECT ANSWER one who is expected to perform valuation services competently and in a manner that is independent, impartial, and objective Client - CORRECT ANSWER the party or parties (individual, group, or entity) who engage an appraiser by employment or contract in a specific assignment, whether directly or through an agent Assignment conditions - CORRECT ANSWER assumptions, extraordinary assumptions, hypothetical conditions, laws and regulations, jurisdictional exceptions, and other conditions that affect the scope of work Assignment - CORRECT ANSWER a valuation service that is provided by an appraiser as a consequence of an agreement with a client Assignment results - CORRECT ANSWER an appraiser's opinions or conclusions, not limited to value, that were developed when performing an appraisal assignment, an appraisal review assignment, or a valuation service other than an appraisal or appraisal review Confidential information - CORRECT ANSWER information that is either identified by the client as confidential when providing it to an appraiser and that is not available from any other source; or classified as confidential or private by applicable law or regulation Intended use - CORRECT ANSWER -the use or uses of an appraiser's reported appraisal or appraisal review assignment opinions and conclusions, as identified by the appraiser based on communication with the client at the time of the assignment -critical to the scope of work decision Intended user - CORRECT ANSWER the client and any other party as identified, by name or type, as users of the appraisal or appraisal review report by the appraiser on the basis of communication with the client at the time of the assignment Report - CORRECT ANSWER any communication, written or oral, of an appraisal or appraisal review that is transmitted to the client or a party authorized by the client upon completion of an assignment Signature - CORRECT ANSWER personalized evidence indicating authentication of the work performed by the appraiser and the acceptance of the responsibility for content, analyses, and the conclusions in the report Workfile - CORRECT ANSWER data, information, and documentation necessary to support the appraiser's opinions and conclusions and to show compliance with USPAP Valuation service - CORRECT ANSWER a service pertaining to an aspect of property value, regardless of the type of service whether it is performed by appraisers or by others Appraisal practice - CORRECT ANSWER valuation services performed by an individual acting as an appraiser, including but not limited to appraisal and appraisal review Appraisal - CORRECT ANSWER the act or process of developing an opinion of value; an opinion of value; of or pertaining to appraising and related functions such as appraisal practice or appraisal services Appraisal review - CORRECT ANSWER The act or process of developing and communicating an opinion about the quality of another appraiser's work that was performed as part of an appraisal, appraisal review, or appraisal consulting assignment; of or pertaining to an opinion about the quality of another appraiser's work that was performed as part of an appraisal or appraisal review assignment Scope of work - CORRECT ANSWER -the type and extent of research and analyses in an appraisal or appraisal review assignment -for each appraisal, appraisal review, and appraisal consulting assignment, an appraiser must identify the problem to be solved, determine and perform the scope of work necessary to develop credible assignment results for the intended use, and disclose the scope of work performed in the report Standard - CORRECT ANSWER a benchmark or set of criteria used to measure performacne Standards rule - CORRECT ANSWER composed of the individual rules within each standard The Ethics Rule requires that an appraiser must... - CORRECT ANSWER -not misrepresent his or her role when providing valuation services that are outside of appraisal practice -certify recognition and acceptance of USPAP responsibilities in an appraisal or appraisal review assignment -communicate in a manner that is not misleading What 3 sections make up the Ethics Rule? - CORRECT ANSWER -conduct -management -confidentiality Record Keeping Rule - CORRECT ANSWER establishes requirements for an appraiser's workfile - what it is, when it must be created, what must be in it, how long it must be maintained, and who has custody and retrieval responsibilities An appraiser's workfile... - CORRECT ANSWER -must be in existence prior to the issuance of any report or other communication of assignment results -must be prepared for each appraisal or appraisal review assignment An appraiser's workfile must include... - CORRECT ANSWER -the name of the client and the identity, by name or type, of any other intended users -true copies of all written reports, documented on any type of media -summaries of all oral reports or testimony, or a transcript of testimony, including the appraiser's signed and dated certification -all other data, information, and documentation necessary to support the appraiser's opinions and conclusions and to show compliance with USPAP, or references to the location(s) of such other data, information, and documentation An appraiser must retain a workfile for a period of how many years? - CORRECT ANSWER at least 5 years after preparation or at least 2 years after final disposition of any judicial proceeding in which the appraiser provided testimony related to the assignment, whichever period expires last Competency Rule - CORRECT ANSWER -sets forth some of the fundamental obligations inherent in appraisal practice -applies to all of appraisal practice, including appraisal, appraisal review, and any other services provided by an individual acting as an appraiser What 3 sections make up the Competency Rule? - CORRECT ANSWER -being competent -acquiring competency -lack of competency If an appraiser realizes they do not have the competency to complete the assignment during the assignment what must they do? - CORRECT ANSWER -notify the client -take all steps necessary or appropriate to complete the assignment competently -describe, in the report, the lack of knowledge and/or experience and the steps taken to complete the assignment competently Scope of Work Rule - CORRECT ANSWER the appraiser must identify the problem to be solved, determine and perform the scope of work necessary to develop credible assignment results, and disclose the scope of work in the report What are the 3 sections that make up the Scope of Work Rule? - CORRECT ANSWER -problem identification -scope of work acceptability -disclosure obligations When is the scope of work acceptable? - CORRECT ANSWER when it meets or exceeds the expectations of parties who are regularly intended users for similar assignments, and what an appraiser's peers' actions would be in performing the same or a similar assignment Who is ultimately responsible for the scope of work and the credibility of the assignment results? - CORRECT ANSWER the appraiser Jurisdictional exception - CORRECT ANSWER an assignment condition established by applicable law or regulation, which precludes an appraiser from complying with a part of USPAP Jurisdictional exception rule - CORRECT ANSWER an appraiser must identify the law or regulation that precludes compliance with USPAP, comply with that law or regulation, clearly and conspicuously disclose in this report that part of USPAP that is voided by that law or regulation, and cite in the report the law or regulation requiring this exception to USPAP compliance Standard 1: Real Property Appraisal, Development - CORRECT ANSWER in developing a real property appraisal, an appraiser must identify the problem to be solved, determine the scope of work necessary to solve the problem, and correctly complete research and analyses necessary to produce a credible appraisal What can the requirements of Standard 1 be used as? - CORRECT ANSWER a checklist by an appraiser who is developing a real property appraisal Standard 2 - CORRECT ANSWER establishes requirements for communicating (reporting) real property appraisal assignments Standard 3 - CORRECT ANSWER an appraiser acting as a reviewer must identify the problem to be solved, determine the scope of work necessary to solve the problem, and correctly complete research and analysis necessary to produce a credible appraisal review (applies to all property types) Subject of an appraisal review includes... - CORRECT ANSWER another appraiser's work, a report, a part of a report, a workfile, or some combination of these Standard 4 - CORRECT ANSWER an appraiser acting as a reviewer must communicate each analysis, opinion, and conclusion in a manner that is not misleading Standard 5 - CORRECT ANSWER applies to all mass appraisals of real or personal property regardless of the purpose or use of such appraisals Mass appraisal - CORRECT ANSWER the process of valuing a universe of properties as of a given date using standard methodology, employing common data, and allowing for statistical testing In developing a mass appraisal what must an appraiser do? - CORRECT ANSWER identify the problem to be solved, determine the scope of work necessary to solve the problem, and correctly complete research and analyses necessary to produce a credible mass appraisal Standard 6 - CORRECT ANSWER addresses the content and level of information required in communicating the results of a mass appraisal assignment In reporting the results of a mass appraisal what must an appraiser do? - CORRECT ANSWER communicate each analysis, opinion, and conclusion in a manner that is not misleading Standard 7 - CORRECT ANSWER addresses the development requirements for a personal property appraisal assignment Standard 8 - CORRECT ANSWER addresses the content and level of information required in communicating the results of a personal property appraisal assignment What must an appraiser do when reporting the results of a personal property appraisal? - CORRECT ANSWER communicate each analysis, opinion, and conclusion in a manner that is not misleading Standard 9 - CORRECT ANSWER addresses the development requirements for an appraisal of an interest in a business enterprise or intangible asset Business enterprise - CORRECT ANSWER an entity pursuing an economic activity Business equity - CORRECT ANSWER the interests, benefits, and rights inherent in the ownership of a business enterprise or a part thereof in any form (including, but not necessarily limited to, capital stock, partnership interests, cooperatives, sole proprietorships, options, and warrants) Intangible property - CORRECT ANSWER nonphysical assets, including but not limited to, franchises, trademarks, patents, copyrights, goodwill, equities, securities, and contracts as distinguished from physical assets such as facilities and equipment What must an appraiser do when developing an appraisal of an interest in a business enterprise or intangible asset? - CORRECT ANSWER must identify the problem to be solved, determine the scope of work necessary to solve the problem, and correctly complete the research and analyses necessary to produce a credible appraisal Standard 10 - CORRECT ANSWER addresses the content and level or information required in communicating the results of an appraisal in a business enterprise or intangible asset What must an appraiser do when reporting the results of an appraisal of an interest in a business enterprise or intangible asset? - CORRECT ANSWER communicate each analysis, opinion, and conclusion in a manner that is not misleading [Show Less]
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15-hr National USPAP Exam 49 Questions with Answers 2022-2023,100% CORRECT
15-hr National USPAP Exam 49 Questions with Answers 2022-2023 Who is responsible for issuing credentials to individual appraisers? - CORRECT ANSWER St... [Show More] ate appraiser regulatory agencies are responsible for receiving and processing applications for licensure and certification, and for issuing credentials to qualified individuals. Which is NOT a responsibility of the Appraisal Subcommittee (ASC)? - CORRECT ANSWER USPAP is written, interpreted, and amended by the Appraisal Standards Board (ASB). The other answers listed are all responsibilities of the ASC. USPAP is enforced by: - CORRECT ANSWER The responsibility of enforcing USPAP is provided to the individual state appraiser licensing and certification agencies. The USPAP Blueprint - CORRECT ANSWER The PREAMBLE describes the overall purpose and structure of USPAP. The PREAMBLE includes a section titled STATEMENTS ON APPRAISAL STANDARDS. Statements are not addressed in this course since there are currently no active Statements. The DEFINITIONS section contains terms that have distinct meanings in USPAP. The ETHICS RULE describes the general ethical requirements for appraisers. The RECORD KEEPING RULE defines what must be included in a workfile for an appraisal or appraisal review assignment. The COMPETENCY RULE describes general performance requirements for appraisers. The SCOPE OF WORK RULE elaborates on problem identification, determination of an appropriate scope of work, and disclosure of the scope of work that was performed. The JURISDICTIONAL EXCEPTION RULE recognizes that laws or regulations take precedence over USPAP in certain situations. The USPAP Blueprint, Part Two - CORRECT ANSWER STANDARD 1 - Real Property Appraisal, Development STANDARD 2 - Real Property Appraisal, Reporting STANDARD 3 - Appraisal Review, Development STANDARD 4 - Appraisal Review, Reporting STANDARD 5 - Mass Appraisal, Development STANDARD 6 - Mass Appraisal, Reporting STANDARD 7 - Personal Property Appraisal, Development STANDARD 8 - Personal Property Appraisal, Reporting STANDARD 9 - Business Appraisal, Development STANDARD 10 - Business Appraisal, Reporting Which of these is considered an integral part of USPAP and has the same weight as the components they address? - CORRECT ANSWER Comments are an integral part of USPAP and have the same weight as the components they address. Advisory Opinions, USPAP Q & As and USPAP FAQs are considered "other communications." In USPAP, the appraisal process is divided into two distinct types of activity: _________ and __________. - CORRECT ANSWER In USPAP, the appraisal process is divided into two distinct types of activity: development and reporting. Advisory Opinions are best described as - CORRECT ANSWER Advisory Opinions and Frequently Asked Questions are additional reference materials that provide guidance only and illustrate appraisal standards and offer advice. The requirement for USPAP compliance in an appraisal assignment could be the result of: - CORRECT ANSWER The requirement to comply with USPAP could be triggered by law, regulation, agreement with the client, or the appraiser's choice. "The monetary relationship between properties and those who buy, sell or use those properties" is the definition of: - CORRECT ANSWER Value is defined in USPAP as the monetary relationship between properties and those who buy, sell or use those properties, expressed as an opinion of the worth of a property at a given time. Appraisal practice includes only: - CORRECT ANSWER Appraisal practice is defined as: valuation services performed by an individual acting as an appraiser, including but not limited to appraisal and appraisal review. A real estate broker completes a Comparative Market Analysis (CMA) on a property that she wants to list for sale. What would this be considered? - CORRECT ANSWER A valuation service A key distinction between appraisal practice and other types of valuation services is that only appraisers conduct appraisal practice. The broker is not providing this service as an appraiser; therefore, it is not part of appraisal practice. "The monetary relationship between properties and those who buy, sell or use those properties" is the definition of: - CORRECT ANSWER Value is defined in USPAP as the monetary relationship between properties and those who buy, sell or use those properties, expressed as an opinion of the worth of a property at a given time. Appraisal practice includes only: - CORRECT ANSWER Valuation services provided by an individual acting as an appraiser If an appraiser assumes a condition to be true that does not exist for the purposes of analysis, this is an example of: - CORRECT ANSWER A hypothetical condition is used to appraise a property under a condition contrary to known fact. The ethical obligations of USPAP apply to: - CORRECT ANSWER Individual appraisers An appraiser must disclose any service he or she provided regarding the subject property for a period of _________ prior to agreeing to perform the assignment. - CORRECT ANSWER Three years An appraiser is disclosing to a client the fact that she had previously appraised the subject property within the prior three years. When making this disclosure, the appraiser must be careful to: - CORRECT ANSWER Not disclose confidential information from the previous assignment In a real property appraisal assignment prepared for a mortgage lender, an appraiser is permitted by USPAP to base his compensation for an appraisal assignment on: - CORRECT ANSWER Whether or not the report is transmitted to the client by the due date An appraiser completes an appraisal and transmits the report to the client. The report copy retained in the appraiser's workfile does not have a signature affixed to it. Is this permissible under USPAP? - CORRECT ANSWER No, a true copy must include a signature The credibility of assignment results is measured in the context of: - CORRECT ANSWER The intended use An appraiser's report must contain ____________ to allow intended users to understand the scope of work performed. - CORRECT ANSWER Sufficient information An appraiser is engaged to appraise a single-unit dwelling. Upon inspection of the property, the appraiser realizes it is a three-unit dwelling. The appraiser's best course of action is: - CORRECT ANSWER Reconsider the scope of work before proceeding What is the purpose of the JURISDICTIONAL EXCEPTION RULE? - CORRECT ANSWER To provide a saving or severability clause to preserve the balance of USPAP Which of these would be considered an example of a jurisdictional exception in an appraisal assignment? - CORRECT ANSWER A probate court paying appraisers based on the value of the subject property Which statement is FALSE regarding STANDARD 1? - CORRECT ANSWER It covers real and personal property appraisal development. STANDARD 1 contains six Standards Rules, covering the development of a real property appraisal. It mirrors the appraisal process and can be used as a convenient checklist. If a mortgage borrower receives a copy of an appraisal report from a mortgage lender as a result of disclosure requirements: - CORRECT ANSWER This does not make the borrower an intended user An appraiser's client wishes to remain anonymous, and asks the appraiser not to include client's identity in an appraisal report. What should the appraiser do? - CORRECT ANSWER Omit the client's identity from the report but document the client's identity in the workfile Exposure time is: - CORRECT ANSWER An opinion developed by an appraiser What is the primary purpose of an appraiser making an inspection of the subject property? - CORRECT ANSWER To collect information about characteristics that are relevant to value An example of a relevant property characteristic that could affect a real property appraisal assignment would be: - CORRECT ANSWER The fact that the subject property is affected by an easement An easement would be considered a relevant property characteristic in a real property appraisal assignment. The amount of time to complete the assignment and the type of report requested are not characteristics of the subject property. When appraising a property with proposed improvements, what type of value opinion is permitted by USPAP? - CORRECT ANSWER Both current and prospective value appraisals subject to completion of proposed improvements to real property are permitted under USPAP. When developing a sales comparison approach under USPAP: - CORRECT ANSWER The appraiser must analyze such data as are available to indicate a value conclusion When analyzing the subject property's sales history in a real property appraisal assignment, an appraiser is required by USPAP to analyze ______________. - CORRECT ANSWER All sales of the subject property that occurred within three years prior to the effective date of the appraisal When analyzing listings of the subject property in a real property appraisal assignment, USPAP requires an appraiser to analyze, at a minimum, ____________. - CORRECT ANSWER Current listings An appraiser determines that the cost approach is not necessary in an appraisal assignment, and therefore does not develop the approach. In the Restricted Appraisal Report for the assignment, what must the appraiser do? - CORRECT ANSWER State the reason for the exclusion of the approach An appraiser is preparing a Restricted Appraisal Report in a situation where there are intended users in addition to the client. Which statement is true regarding this situation? - CORRECT ANSWER These additional intended users must be identified in the report by name. To the extent possible and appropriate, oral appraisal reports for real property must address the substantive matters that apply to a(n) - CORRECT ANSWER Appraisal Report When providing an oral appraisal report, the appraiser must to the extent possible and appropriate, include information sufficient to meet the requirements for a Summary Appraisal Report [SR 2-2(b)]. An appraiser determines that the cost approach is not necessary in an appraisal assignment, and therefore does not develop the approach. In the Restricted Appraisal Report for the assignment, what must the appraiser do? - CORRECT ANSWER State the reason for the exclusion of the approach In performing an appraisal review, a reviewer may use information that was not available to the original appraiser in the normal course of business, as long as the information: - CORRECT ANSWER is not used in the development of the reviewer's opinion of the quality of the work under review When performing an appraisal review, a reviewer finds information that was available to the original appraiser, but the original appraiser did not consider it when developing the appraisal under review. Does USPAP permit the reviewer to use this information in developing an opinion of the quality of the work under review? - CORRECT ANSWER yes Information that should have been considered by the original appraiser may be used by the reviewer in developing an opinion as to the quality of the work under review. Which statement is TRUE regarding USPAP and the appraisal review process for real property? - CORRECT ANSWER If the reviewer develops his or her own opinion of value, it must be developed under the requirements of STANDARD 1. Appraisers may provide their own opinions as part of a review assignment. These opinions must be developed under the STANDARD that is applicable to the type of assignment. In reviewing a real property appraisal, the reviewer would develop his own opinion of value under the requirements of STANDARD 1. An appraisal review report - CORRECT ANSWER must be separate from the work under review A reviewer is preparing an appraisal review report using a pre-printed form that was created by the client. The form does not have space for all of the minimum report content requirements of USPAP. What should the reviewer do? - CORRECT ANSWER Supplement the form with the required content items A reviewer is preparing an appraisal review report using a pre-printed form that was created by the client. The form does not have space for all of the minimum report content requirements of USPAP. What should the reviewer do? - CORRECT ANSWER Supplement the form with the required content items When appraising personal property, the appraiser must analyze prior sales of the subject over what time period? - CORRECT ANSWER A reasonable and applicable time In a personal property appraisal assignment that includes multiple objects as part of the same assignment: - CORRECT ANSWER The objects that are more significant to the assignment results should be the focus of the analysis An appraisal that takes into consideration the full effect of known environmental contamination would be considered: - CORRECT ANSWER "As-is" Regulations and guidelines that apply to an appraisal for a federally-regulated lending transaction are: - CORRECT ANSWER assignment conditions [Show Less]
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USPAP 15-hour Exam 64 Questions and Answers,100% CORRECT
USPAP 15-hour Exam 64 Questions and Answers Appraisal - CORRECT ANSWER The act or process of developing an opinion of value Appraisal practice - CORR... [Show More] ECT ANSWER Valuation services performed by an individual acting as appraiser; including but not limited appraisal and appraisal review Appraisal review - CORRECT ANSWER The act or process of developing an opinion about the quality of another's appraisers work Appraiser - CORRECT ANSWER One who is expected to perform valuation services competently in a manner that is INDEPENDENT IMPARTIAL & OBJECTIVE Appraisers peers - CORRECT ANSWER Other appraisers who have expertise and competency in similar assignment Assignments - CORRECT ANSWER An agreement between appraiser and client to provide valuation service Assignment results - CORRECT ANSWER Appraisers opinions or conclusions developed on specific assignment Assumptions - CORRECT ANSWER That which is taken to be true Bias - CORRECT ANSWER A preference that precludes appraiser from being impartial, independent and objective Business enterprises - CORRECT ANSWER Entity pursuing an economic activity Business equity - CORRECT ANSWER Interest, benefits, rights inherent in the ownership of a business enterprise Client - CORRECT ANSWER The party or parties who engage, by employment or contract, an appraiser in a specific assignment. confidential information - CORRECT ANSWER Information that is either:private by law, identified by the client and is not available by any other source Cost - CORRECT ANSWER Amount required to create, produce or obtain property Credible - CORRECT ANSWER Worthy of belief Exposure time - CORRECT ANSWER Estimated length of time the prop interest being appraised WOULD have been offered on the market prior to the hypothetical sale at market value on eff date of appraisal. Extraordinary assumption - CORRECT ANSWER An assumption directly related to specific assignment, which is found to be true could alter the appraisers opinion or conclusion Feasibility analysis - CORRECT ANSWER Study of the cost-benefit relationship of an economic endeavor Hypothetical condition - CORRECT ANSWER Directly related to sub assignment, which is contrary to what is known by appraiser to exist on effective date of assignment, but is used for purpose of analysis Intangible property - CORRECT ANSWER No physical assets: franchises, trademarks, patents, equities, Intended use - CORRECT ANSWER Use of appraisers reported appraisal or review assignment opinion or conclusions as identified by the appraiser based on communication w client at time of assignment Intended user - CORRECT ANSWER The client or any other party as identified by name or type as users of the appraisal Jurisdictional exception - CORRECT ANSWER An assignment condition est by applicable law or reg that precludes an appraiser from complying with USPAP Market value - CORRECT ANSWER Type of value stated as opinion, that assumes transfer of property on specific date Mass appraisal - CORRECT ANSWER Process of valuing a universe of properties as of a given date using standard methodology, common data and statistical testing Mass Appraisal Model - CORRECT ANSWER A mathematical expression of how supply and demand factors interact in a market. Personal Property - CORRECT ANSWER Identifiable tangible objects that are considered by general public as being "personal". Price - CORRECT ANSWER The amount asked, offered or paid for a property Real estate - CORRECT ANSWER An identified parcel of land, including any improvements Real Property - CORRECT ANSWER The interests, benefits, and rights inherent in real estate ownership. Report - CORRECT ANSWER Any communication written or oral of an appraisal or appraisal review that is transmitted to the client upon completion Scope of work - CORRECT ANSWER Type and extent of research and analysis needed in appraisal assignment Signature - CORRECT ANSWER Personalized evidence indicating authenticity of an appraisal report. Acceptance of responsibility for content, analysis and conclusions Valuation services - CORRECT ANSWER Services pertaining to aspects of property value Value - CORRECT ANSWER Monetary relationship between property and those who buy, sell, use property Workfile - CORRECT ANSWER Collection of documentation to support an appraisers final report USPAP - CORRECT ANSWER Developed for purpose to promote & maintain public trust and confidence in professional appraisal. ASC - CORRECT ANSWER Appraisal Sub Committee: monitors TAF, non-profit. Supervisory role over state agencies & regs. FFIEC made up of 7 govt agencies FRB, OCC, FDIC, NCUA, HUD, FHFA, CFPB APB - CORRECT ANSWER Appraisal Practices Board: valuation advisory of techniques and methods of appraisal TAF - CORRECT ANSWER The Appraisal Foundation: private/ no legal governance, non-profit BOT - CORRECT ANSWER Board of Trustees: appoints members to other boards, secures funding for TAF, monitors/oversight of TAF, 3 boards & councils ASB - CORRECT ANSWER Appraisal Standards Board: revises USPAP- 2 year update, subject, content. Sets Definitions, Preamble, Rules, Standards, and Statements AQB - CORRECT ANSWER Appraisal Qualification Board: sets min education requirements/criteria, creates National Uniform Licensing and exams, certifies instructors & courses Title XI - CORRECT ANSWER FIRREA accepted by Congress, OMB, IRS and Fannie Mae 3 TAF Sponsors - CORRECT ANSWER Appraisal Sponsor, Affiliate Sponsor, International Sponsor 3 TAF Councils - CORRECT ANSWER The Appraisal FoundationAdvisory Council TAFAC Industry Advisory Council IAC Value Global Forum VGF State regulatory agencies - CORRECT ANSWER Validate qualifications, issue credentials, investigate complaints, admin disciplinary actions USPAP Structure - CORRECT ANSWER -Definitions - Preamble - Rules (5): ethics, competency, record keeping, scope of work, jurisdictional exception. - Standards 1-10 - Statements on Standards STANDARDS 1-10 - CORRECT ANSWER 1- Real Prop App/ Development 2- Real Prop App/ Reporting 3- Appraisal Review/ Dev & Reporting 6- Mass Appraisal/ Dev & Reporting 7- Personal Prop App/ Development 8- Personal Prop App/ Reporting 9- Business App/ Development 10- Business App/ Reporting "Statements" - CORRECT ANSWER Authorized by bi-laws of TAF and are for Clarification, Interpretation, Explanation or Elaboration of USPAP "Comments" - CORRECT ANSWER Same weight as component being addressed. Extensions of definition and rules to provide interpretation and establish content. Steps of Appraisal Process - CORRECT ANSWER 1- Define problem 2- define scope of work 3- data collection & Analysis 4- application of approaches to value 5- reconciliation of value, final opinion 6- Report/ Defined value 2 Elements of Appraisal process - CORRECT ANSWER - Development - Reporting USPAP applies only to _______________ - CORRECT ANSWER Appraisal Practices performed by appraisers Services provided by Appraisal Practice - CORRECT ANSWER Appraisal, Appraisal review, other(teaching, studies, articles, legal) Types of Property covered by USPAP - CORRECT ANSWER Tangible and Intangible Scope of work rule - CORRECT ANSWER -problem identification -scope of work acceptability -disclosure obligation Appraisers have broad _________________ and significant ________________ in determining the appropriate scope of work in an assignment - CORRECT ANSWER Flexibility, responsibility Scope of work: Problem Identification - CORRECT ANSWER Client and other intended users Intended use Type and definition of value Effective date Subject of assignment Assignment conditions Scope of work acceptability - CORRECT ANSWER Expectation of parties who are regularly intended users AND what an appraiser peers actions would be Intended Use determines definition of _________________ if given assignment - CORRECT ANSWER Market value Summarized report where the client and intended user are different - CORRECT ANSWER Appraisal report Stated conclusion info kept in workfile. Client is the only intended user - CORRECT ANSWER Restricted report In developing a real property appraisal, an appraiser must ______________, _________________, and ______________ all information necessary for credible assignment results - CORRECT ANSWER Collect, verify, analyze [Show Less]
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15 HR National USPAP 2020-2021, USPAP 15-Hour Course, Mckissock USPAP Chapter 1-9
15 HR National USPAP 2020-2021, USPAP 15-Hour Course, 15-Hour USPAP Course, Mckissock USPAP Chapter 1, Mckissock USPAP Chapter 2 (Definitions), McKissock U... [Show More] SPAP Chapter 4, Mckissock USPAP Chapter 7, Mckissock USPAP Chapter 8, Mckissock USPAP Chapter 9... [Show Less]
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15 HR National USPAP 2023 Exam 34 Questions with Answers,100% CORRECT
15 HR National USPAP 2023 Exam 34 Questions with Answers What is USPAP? - CORRECT ANSWER Uniform Standards of Professional Appraisal Practice Why w... [Show More] as USPAP developed? - CORRECT ANSWER To promote and maintain a high level of public trust as well as confidence in professional appraisal practice What are the benefits of USPAP? - CORRECT ANSWER 1) Provides a common basis for comparison (eg are we doing the appropriate work for the type of assignment?) 2) Provides a reference source for all users of the document. 3) Provides a basis for uniform enforcement for state regulatory agencies. 4) Provides a reason for clients, other intended users, and the public to place their trust in the services performed by professional appraisers. What is the role of the Appraisal Standards Board (ASB) of The Appraisal Foundation? - CORRECT ANSWER To develop, interpret, and amend the Uniform Standards of Professional Appraisal Practice (USPAP). What are the five sections of USPAP? - CORRECT ANSWER Preamble Definitions Rules Standards (Including Standards Rules) Statements on Appraisal Standards (currently no active statements) Are the Advisory Opinions (AO) and the Frequently Asked Questions (FAQ) a part of USPAP? - CORRECT ANSWER NO. These are reference materials of "Other Communications". They are for guidance only. These communications do not establish new Standards or interpret existing Standards and are not a part of USPAP. Who enforces the adherence and content of USPAP? - CORRECT ANSWER State and Federal Regulatory Authorities Who appoints the ASB (Appraisal Standards Board)? - CORRECT ANSWER Members are appointed by the BOT (Board of Trustees) What is the purpose of USPAP? - CORRECT ANSWER The purpose is to promote and maintain a high level of public trust in appraisal practice by establishing requirements for appraisers. Who does the ASB (Appraisal Standards Board) promulgate USPAP for? - CORRECT ANSWER It is promulgated for both appraisers and users of appraisal services. What is the appraiser's responsibility? - CORRECT ANSWER It is to protect the overall public trust. How does USPAP address the ethical and performance obligations of appraisers? - CORRECT ANSWER USPAP addresses the ethical and performance obligations of appraisers through DEFINITIONS, RULES, STANDARDS, STANDARDS RULES, and STATEMENTS (there are currently no active statements). What do the DEFINITIONS portion of USPAP establish? - CORRECT ANSWER The DEFINITIONS establish the application of certain terminology in USPAP. What is the purpose of the ETHICS RULE? - CORRECT ANSWER The ETHICS RULE sets forth the requirements for integrity, impartiality, objectivity, independent judgment, and ethical conduct. What does the RECORD KEEPING RULE establish? - CORRECT ANSWER The RECORD KEEPING RULE establishes the workfile requirements for appraisal and appraisal review assignments. What does the COMPETENCY RULE do? - CORRECT ANSWER The COMPETENCY RULE presents pre-assignment and assignment conditions for knowledge and experience. Wat does the SCOPE OF WORK RULE do? - CORRECT ANSWER The SCOPE OF WORK RULE presents obligations related to problem identification, research, and analysis. What doe the JURISDICTIONAL EXCEPTION RULE do? - CORRECT ANSWER The JURISDICTIONAL EXCEPTION RULE preserves the balance of USPAP if a portion is contrary to law or public policy of a jurisdiction. What is the purpose of the STANDARDS? - CORRECT ANSWER The STANDARDS establish the requirements for appraisal and appraisal review and the manner in which each is communicated. What is the purpose of STANDARDS 1 and 2? - CORRECT ANSWER STANDARDS 1 & 2 establishes requirements for the development and communication of a real property appraisal. What is the purpose of STANDARDS 3 and 4? - CORRECT ANSWER STANDARDS 3 and 4 establishes requirements for the development and communication of an appraisal review. What is the purpose of STANDARDS 5 and 6? - CORRECT ANSWER STANDARDS 5 & 6 establishes requirements for the development and communication of a mass appraisal. What is the purpose of STANDARDS 7 and 8? - CORRECT ANSWER STANDARDS 7 and 8 establishes requirements for the development and communication of a personal property appraisal. What is the purpose of STANDARDS 9 and 10? - CORRECT ANSWER STANDARDS 9 & 10 establishes requirements for the development and communication of a business or intangible asset appraisal. What is the purpose of the COMMENTS of USPAP? - CORRECT ANSWER Comments are an integral part of USPAP and have the same weight as the component they address. These extensions of the DEFINITIONS, RULES, and STANDARDS RULES provide interpretation and establish the context and conditions for application. Does USPAP establish who or which assignments must comply? - CORRECT ANSWER NO. USPAP does not establish who or which assignments must comply. What are the limitations of The Appraisal Foundation? - CORRECT ANSWER The Appraisal Foundation is not a government entity. It does not have the power to make, judge, or enforce law. What are the limitations of the Appraisal Standards Board? - CORRECT ANSWER The Appraisal Standards Board is not a government entity. It does not have the power to make, judge, or enforce law. When must an appraiser comply with USPAP? - CORRECT ANSWER An appraiser must comply with USPAP when either the service or the appraiser is required by law, regulation, or agreement with the client. Individuals may also choose to comply with USPAP any time that individual is performing the service as an appraiser. What must an appraiser do to comply with USPAP? - CORRECT ANSWER - An appraiser must act competently and in a manner that is independent, impartial, and objective. - An appraiser must comply with the ETHICS RULE in all aspects of appraisal practice. - An appraiser must maintain the data, information and analysis necessary to support his or her opinions for appraisal and appraisal review assignments in accordance with the RECORD KEEPING RULE. - An appraiser must comply with the COMPETENCY RULE and the JURISDICTIONAL EXCEPTION RULE for all assignments. - When an appraiser provides an opinion of value in an assignment, the appraiser must also comply with the SCOPE OF WORK RULE, the RECORD KEEPING RULE, the applicable development and reporting Standards and applicable Statements (there are currently no active Statements). - When an appraiser provides an option about the quality of another appraiser's work that was performed as part of an appraisal or appraisal review assignment, the appraiser must also comply with the SCOPE OF WORK RULE, the RECORD KEEPING RULE, applicable portions of STANDARDS 3 and 4, and applicable Statements (there are currently no active Statements). - When preparing an appraisal or appraisal review that is a component of a large assignment with additional opinions, conclusions, or recommendations, the appraisal or appraisal review component must comply with the applicable development and reporting Standards and applicable Statements (there are currently no active Statements), and the remaining component of the assignment must comply with the ETHICS RULE, the COMPETENCY RULE, and the JURISDICTIONAL EXCEPTION RULE. APPRAISAL - CORRECT ANSWER The act or process of developing an opinion of value; an opinion of value. The act of or pertaining to appraising and related functions such as appraisal practice or appraisal services. APPRAISAL PRACTICE - CORRECT ANSWER Valuation services performed by an individual acting as an appraiser, including but not limited to appraisal and appraisal review. APPRAISAL REVIEW - CORRECT ANSWER The act or process of developing and an opinion about the quality of another appraiser's work that was performed as part of an appraisal or appraisal review assignment. - CORRECT ANSWER [Show Less]
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USPAP 15 Hour Exam 64 Question with Answers 2023,100% CORRECT
USPAP 15 Hour Exam 64 Question with Answers 2023 appraisal subcommittee - CORRECT ANSWER national registry appraisal foundation - CORRECT ANSWER appr... [Show More] aisal qualifications board appraisal standards board who enforces USPAP - CORRECT ANSWER state regulators what is the purpose of USPAP - CORRECT ANSWER to promote and maintain a high level of public trust not parts of USPAP - CORRECT ANSWER advisory opinions (illustrate) FAQs USPAP parts applicable to appraisal practice - CORRECT ANSWER preamble definitions ethics rule competency rule jurisdictional exception rule ethics rule - CORRECT ANSWER appraiser must comply with USPAP when obligated by law or regulation, agreement. should always comply when working as an appraiser confidential information - CORRECT ANSWER identified by client not available from any other source classified as private by law ethics rule - CORRECT ANSWER prohibits bias requires disclosure and certification if any work has been done relative to the subject property in the last 3 years requires disclosure of interest in property prior to engagement and in certification record keeping rule - CORRECT ANSWER must have work file for all appraisal and appraisal review assignments for a minimum of 5 years or 2 years after the disposition or court case, whichever is longer competency rule - CORRECT ANSWER disclose lack of knowledge to client before agreeing to perform get competent: must be competent before completion disclose in report scope of work rule - CORRECT ANSWER acceptable when it meets or exceeds expectations of regular intended users and appraiser's peers appraisers decision credible results two types of tangible properties - CORRECT ANSWER personal property real property why did USPAP come about - CORRECT ANSWER to promote public trust how many comparables does USPAP require? - CORRECT ANSWER 0, but a minimum of 3 is the standard restricted appraisal report - CORRECT ANSWER only requires a summary of the appraisal, not the full explanation appraiser - CORRECT ANSWER must comply with USPAP even if not doing an appraisal three years - CORRECT ANSWER number of years you need to go back to check on sales of real property when must an appraiser comply with USPAP - CORRECT ANSWER when required by law or regulation or agreement with a client. choose to comply any time providing services three ethical requirements of appraiser - CORRECT ANSWER independent impartial objective ultimate goal of an appraisal - CORRECT ANSWER credible results what is it called when the review appraiser agrees with the report - CORRECT ANSWER its an appraisal attributes of public trust - CORRECT ANSWER specialized knowledge experience objectivity independence integrity state appraiser regulatory agencies - CORRECT ANSWER has enforcement authority within their appraiser certification programs state appraiser regulatory agencies - CORRECT ANSWER has authority to establish higher than AQB criteria for appraiser requirements and standards of practice method USPAP achieves legal authority - CORRECT ANSWER by adoption, citation or implementation by government agencies through regulation or administrative action when do standards apply - CORRECT ANSWER only if you are doing an appraisal or appraisal review comments - CORRECT ANSWER integral part of USPAP, have the same weight as the component they address comments - CORRECT ANSWER provide interpretation and establish the context and conditions for the application intended users - CORRECT ANSWER must be identified two dates required on the report - CORRECT ANSWER effective date report date assignment conditions - CORRECT ANSWER extraordinary assumptions hypothetical conditions definition of the problem - CORRECT ANSWER identify client and other intended users identify the intended use identify the type and definition of value effective date of the opinion identify the relevant characteristics of the property identify the assignment conditions appraisal process - CORRECT ANSWER 1) definition of the problem 2) determine the scope of work 3) data collection of analysis 4) application of the approaches to value 5) reconciliation of value indications and final opinion of value 6) report of defined value opinions intended use - CORRECT ANSWER tells when the scope of work or level of detail is sufficient who benefits from USPAP - CORRECT ANSWER providers and users of appraisal services USPAP compliance - CORRECT ANSWER when required by law, regulation, agreement should comply when representing oneself as an appraiser property covered by USPAP - CORRECT ANSWER tangible real and personal property valuation service - CORRECT ANSWER a service pertaining to an aspect of property value, regardless of the type of service and whether it is performed by appraisers or others appraisal practice - CORRECT ANSWER Valuation services performed by an individual acting in a role as an appraiser, including but not limited to appraisal and appraisal review. client - CORRECT ANSWER engages appraiser extraordinary assumption - CORRECT ANSWER assignment-specific condition as of the effective date regarding UNCERTAIN information used in an analysis which, if found to be false, could alter the appraiser's opinions or conclusions. hypothetical assumption - CORRECT ANSWER condition, directly related to a specific assignment, which is CONTRARY to what is known by the appraiser to exist on the effective date of the assignment results but is used for the purpose of analysis appraiser - CORRECT ANSWER one who is expected to perform valuation services competently and in a manner that is independent, impartial and objective assignment results - CORRECT ANSWER confidential expression of opinion work file - CORRECT ANSWER documents the support for the appraisers analysis bias - CORRECT ANSWER preference that precludes an appraisers impartiality appraisal practice - CORRECT ANSWER includes only valuation services performed by an individual acting as an appraiser credible - CORRECT ANSWER worthy of belief when do standard rules apply - CORRECT ANSWER appraisal appraisal review how is credibility judged - CORRECT ANSWER intended use methods of communication - CORRECT ANSWER written or oral when must a certification be signed - CORRECT ANSWER on any appraisal or appraisal review when can an approach be excluded - CORRECT ANSWER disclosed the reason, when the appraisal still results in credible results what is the difference between an appraisal report and a restricted appraisal report - CORRECT ANSWER content and level of detail appraisal report - CORRECT ANSWER summarized restricted appraisal report - CORRECT ANSWER state two dates on an appraisal - CORRECT ANSWER effective date report date is scope of work required on an appraisal review - CORRECT ANSWER yes work file development - CORRECT ANSWER must be sufficient to produce an appraisal report, even if only doing a restricted appraisal report or appraisal report advisory opinions - CORRECT ANSWER illustrate USPAP comments - CORRECT ANSWER part of USPAP proposed improvements - CORRECT ANSWER appraiser must examine, or have available for future examination, plans, specifications, or other documentation sufficient to identify the extent and character of the proposed improvements how to identify relevant characteristics - CORRECT ANSWER may use any combination of a property inspection and documentation [Show Less]
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USPAP 15-Hour Exam 21 Questions with Answers,100% CORRECT
USPAP 15-Hour Exam 21 Questions with Answers What was the name of the National Association of REALTORS when it was originally established in 1908? - COR... [Show More] RECT ANSWER National association of real estate exchanges what was the name of the appraisal organization formed in 1932 that later became a founding sponsor of The Appraisal Foundation? - CORRECT ANSWER American Institute of Real Estate Appraisers What label is associated with the day the stock market plummeted on October 29, 1929? - CORRECT ANSWER Black tuesday Which historical event was the most influential to the formation of the Appraisal Foundation? - CORRECT ANSWER The savings and loan crisis of the 1980s. What disciplines did the developers include in uspap? - CORRECT ANSWER All appraisal and review appraisal disciplines what did the Ad-Hoc Committee believe was necessary in order to implement the standards they adopted? - CORRECT ANSWER Creation of a new organization. what is the primary purpose of USPAP? - CORRECT ANSWER Promote and maintain public trust in appraisal practice. Identify the statement that best describes the purpose of The Appraisal Foundation. - CORRECT ANSWER A nonprofit private organization established for educational and scientific purposes. The Board of Trustees (BOT) of The Appraisal Foundation has two primary functions, the first to ensure that The Foundation is adequately financed. What is the other function? - CORRECT ANSWER To appoint members to the AQB, APB and the ASB. Which federal law significantly helped USPAP gain public acceptance? - CORRECT ANSWER FIRREA Identify one of the ways USPAP achieves authority in various jurisdictions - CORRECT ANSWER By adoption, citation, or implementation of uspap by government agencies through regulation or administrative actions. A client contracts for services with an appraiser and the client's assignment requires compliance to USPAP. What is this an example of? - CORRECT ANSWER how USPAP achieves authority which entity is NOT an appraisal sponsor of the appraisal foundation - CORRECT ANSWER national credit union administration which of the following is not an attribute that clients count on an appraiser to possess when performing assignments? - CORRECT ANSWER Advocacy which existing entity of The Appraisal Foundation is comprised of nonprofit organizations and government agencies with interest in valuation? - CORRECT ANSWER The Appraisal Foundation Advisory Council Who is responsible for developing minimum criteria involving education and experience for state licensed and certified real property appraisers? - CORRECT ANSWER Appraiser Qualifications Board Who is responsible for development and revision of the Uniform Standards of Professional Appraisal Practice (USPAP)? - CORRECT ANSWER Appraisal Standards Board (ASB) What ASB communication is released for public comment that includes all the proposed changes to USPAP? - CORRECT ANSWER An exposure draft What do appraisal organizations, government agencies, client groups, work groups, appraisers, and members of the public have in common? - CORRECT ANSWER All may submit inquiries and concerns to the appraisal Standards Board. What are advisory opinions? - CORRECT ANSWER Guidance material issued by the ASB that illustrate the applicability of appraisal standards Which law required federal agencies to establish regulations to protect federal financial interests and public policy interests in real estate transactions requiring the services of an appraiser? - CORRECT ANSWER FIRREA [Show Less]
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