7-Hr National USPAP Exam 90 Questions with Answers
The ASB considers suggestions for changes to USPAP from: - CORRECT ANSWER Appraisers, users of
... [Show More] appraisal services, regulators, and others
You have a suggestion for a change to USPAP, and you want to tell the ASB about it. When making your suggestion, it is helpful to the ASB if you: - CORRECT ANSWER Explain how the proposed change will enhance public trust in appraisal practice
The ASB has received numerous public comment letters in response to an exposure draft. When considering these comments, the ASB's primary focus is: - CORRECT ANSWER The reasoning and insight presented in the letter
The term "credible," as used in USPAP, refers to: - CORRECT ANSWER Appraisal development
An appraisal reviewer uses the word "misleading" in relation to the work under review. Assuming the reviewer has used this term properly, the reviewer is referring to: - CORRECT ANSWER The report under review
Assignment results in a real property appraisal assignment would include: - CORRECT ANSWER The highest and best use conclusion
In a real property appraisal assignment, assignment conditions would NOT include: - CORRECT ANSWER Assignment due date
The revision to the definition of Personal Property for 2020-21 was made for the purpose of: - CORRECT ANSWER Including items that are developed and stored electronically
According to the definition of personal inspection in USPAP: - CORRECT ANSWER An appraiser is not expected to perform specialized testing or use special equipment
An appraiser values a property based on viewing high-definition video footage shot from a drone piloted by the appraiser's assistant. The appraiser did not visit the property. The appraiser views and reviews the video footage so many times that she truly feels like she has been at the property. May the appraiser sign a certification indicating that she made a personal inspection of the subject property? - CORRECT ANSWER No, because the appraiser was never physically present at the property
The definition of misleading in the 2020-21 USPAP specifies that a misrepresentation, misstatement, or concealment of relevant facts or conclusions: - CORRECT ANSWER May be intentional or unintentional
Features that affect a property's value or marketability are: - CORRECT ANSWER Relevant characteristics
An appraiser inserts this statement in an appraisal report. "The dwelling has one bedroom and therefore does not meet the demands of typical buyers in its market." What is this statement? - CORRECT ANSWER Both a physical characteristic and an assignment result
Physical characteristics are best described as: - CORRECT ANSWER Facts
An appraiser is developing a market value appraisal. What should he or she do with regard to the definition of value? - CORRECT ANSWER Identify the definition of market value that is appropriate for the assignment
In a real property appraisal assignment, assignment conditions would NOT include: - CORRECT ANSWER Assignment due date
One who is expected to render valuation services competently and in a manner that is independent, impartial, and objective, is the definition of: - CORRECT ANSWER Appraiser
Assignment elements include all of the following except: - CORRECT ANSWER Due date for report submission
An appraiser completes an appraisal on a property, using a current effective date, and transmits the report to the client. The client subsequently requests the appraiser to revise the appraisal to change the effective date to a retrospective date. May the appraiser comply with this request as part of the original assignment? - CORRECT ANSWER No, changing the effective date results in a new assignment
An appraiser is offered an appraisal review assignment by a potential new client. What must the appraiser do before determining the scope of work for this assignment? - CORRECT ANSWER Identify the assignment elements
An appraiser is asked by a client, a residential mortgage lender, to value a mixed-use property solely as a residence and omit any information about the property's non-residential characteristics from the appraisal report. The appraiser complies with the client's request. What is the most appropriate USPAP term to describe the appraiser's actions? - CORRECT ANSWER Misleading
In an appraisal report on a unit in a condominium project, an appraiser notes that the project has a pool, a playground, and a clubhouse. These are: - CORRECT ANSWER Physical characteristics
An appraiser is not permitted by the client to make a personal inspection of the subject property. The appraiser determines she does not have sufficient information about the property's relevant characteristics to produce a credible appraisal. The client does not permit the appraiser to alter the scope of work to gather the information, and the appraiser cannot use an extraordinary assumption about the information because credible assignment results cannot be developed. What should the appraiser do? - CORRECT ANSWER Withdraw from the assignment
A party who receives a copy of an appraisal report is automatically an intended user. - CORRECT ANSWER False
Which of these is an opinion developed by an appraiser? - CORRECT ANSWER Exposure time
An appraiser explains the exclusion of the income approach by stating in the appraisal report, "The income approach is not necessary for credible assignment results." Does this meet the appraiser's obligation under USPAP to explain the omission of this approach? - CORRECT ANSWER No, the appraiser must explain why the approach is not necessary
When disclosing the scope of work performed in an appraisal review report, an appraiser must provide sufficient information to allow _______ to understand the scope of work performed. - CORRECT ANSWER The client and other intended users
In an appraisal report, when disclosing the scope of work performed, an appraiser must consolidate the disclosure into a specific labeled section of the report. - CORRECT ANSWER False
All appraisal review assignments performed in compliance with USPAP require the appraiser performing the appraisal review to possess geographic competency. True or false? - CORRECT ANSWER False
The ASB moved the language stating, "Perfection is impossible to attain, and competence does not require perfection..." into the COMPETENCY RULE. Why did the ASB do this? - CORRECT ANSWER To clarify that it applies to both development and reporting
An appraiser wishes to perform an appraisal review assignment, but he does not have the knowledge or experience to perform competently. At what point must the appraiser disclose his lack of knowledge or experience to the client? - CORRECT ANSWER Prior to agreeing to perform the assignment
An appraiser is valuing a property and has been asked by the client to develop its value based on special non-market financing that is being offered by its owner. What does USPAP require the appraiser to do in this situation? - CORRECT ANSWER Identify the terms of the financing and any influences on value
When identifying the relevant characteristics of the subject property in an appraisal assignment, an appraiser uses information that she did not personally gather. Which statement is TRUE about the appraiser's use of this information? - CORRECT ANSWER The information must be from sources the appraiser reasonably believes are reliable.
When is an appraiser required to develop an opinion of reasonable exposure time in an appraisal? - CORRECT ANSWER When reasonable exposure time is a component of the value definition used in the appraisal
An appraiser is valuing a former industrial site which is known to be contaminated. The appraiser's client, who is the property owner, asks the appraiser to value the property under the extraordinary assumption that it is not contaminated. May the appraiser use this extraordinary assumption as requested by the client? - CORRECT ANSWER No, because there is no reasonable basis for the extraordinary assumption
An appraiser is engaged by a financial institution to prepare an appraisal on a residential dwelling located in a residential zone. This institution requires that all appraisals be performed "as-is" as of the effective date. The owner has petitioned the local municipality for a zoning change to allow for office building use, and he plans to raze the dwelling and construct an office building. As such, he asks the appraiser to value the property under the hypothetical condition that the requested zoning change has already been granted. Is this permissible under USPAP? - CORRECT ANSWER No, because it would not result in a credible analysis for the intended use
For consistency, the ASB made edits to USPAP to remove the term "intangible items" and replace it with: - CORRECT ANSWER Intangible assets
For 2020-21, the edits that were made by the ASB to Standards Rule 1-5 (Sale Agreements, Options, Listings, and Prior Sales) were made in order to: - CORRECT ANSWER Remove an unnecessary Comment for consistency
When necessary for credible assignment results in developing a market value opinion, an appraiser must identify and analyze: - CORRECT ANSWER All of these
A client requests an appraiser change the effective date on an appraisal report that has already been completed and transmitted to the client. What should the appraiser do? - CORRECT ANSWER Treat the request as a new assignment
Which statement regarding Restricted Appraisal Reports is correct? - CORRECT ANSWER In a Restricted Appraisal Report, the identity of any additional intended user(s) must be stated by name.
An appraiser is valuing a property that is currently listed for sale. In a Restricted Appraisal Report, the appraiser must ________ the results of the appraiser's analysis of the current listing. - CORRECT ANSWER Summarize
In an appraisal assignment, an appraiser develops an opinion of reasonable exposure time for the subject property. In the Restricted Appraisal Report prepared for this assignment, the appraiser: - CORRECT ANSWER Must state this opinion
An appraiser is providing a Restricted Appraisal Report in a situation where there is an intended user in addition to the client. In the report, the appraiser must: - CORRECT ANSWER State the identity of the intended user by name
Two appraisers work together on an appraisal assignment. Both appraisers sign the letter of transmittal in the report. Which statement is TRUE regarding a signed certification in this situation? - CORRECT ANSWER Both appraisers must also sign a certification.
Appraiser A receives assistance in an assignment from Appraiser B. Appraiser A signs a certification and states Appraiser B's name in the certification as having provided significant appraisal assistance. Where does the summary of Appraiser B's assistance need to be disclosed? - CORRECT ANSWER Anywhere in the report
An appraiser is preparing an appraisal report using a form that contains a pre-printed certification page. The form has not been updated in several years and the pre-printed certification does not contain a statement regarding whether or not the appraiser provided services related to the subject property within the prior three years. What should the appraiser do? - CORRECT ANSWER Include a supplemental certification that includes the required elements
An appraiser develops an appraisal on a residential property. The client does not want or need a written report, so the appraiser gives an oral report. What is the appraiser required to insert into the workfile after providing this oral report? - CORRECT ANSWER Both of these items
Which of the following words BEST describes Advisory Opinions? - CORRECT ANSWER Guidance
Why does the ASB issue Advisory Opinions? - CORRECT ANSWER To offer guidance and advice for the resolution of appraisal problems
An appraiser is preparing a Restricted Appraisal Report on a property that is currently offered for sale. In the report, the appraiser states, "The subject property has been offered for sale for 30 days for $249,000." No other mention is made in the report regarding the property's listing. Does this statement in the report comply with USPAP's minimum reporting requirements? - CORRECT ANSWER No, because USPAP requires a summary of the appraiser's analysis of the listing
When appraising real property, an appraiser's personal inspection of the subject property is: - CORRECT ANSWER Limited to things that are readily observable without special testing or equipment
An appraiser is valuing a large tract of vacant land in a remote rural area. The appraiser is unable to physically get to the subject property due to lack of road access. From an adjoining property, the appraiser pilots a drone over the subject property and obtains high-quality video footage. The appraiser uses this video footage to obtain information about the subject property's physical characteristics. Which statement is TRUE regarding this situation? - CORRECT ANSWER The appraiser may not certify that he or she made a personal inspection of the subject property.
Why is a personal inspection of a subject property often made by an appraiser when developing an appraisal? - CORRECT ANSWER To gather information about its relevant characteristics
Appraiser L is valuing an improved residential property. Appraiser L does not inspect the property; instead he relies on information from a personal inspection that was performed by Appraiser M. In the appraisal report, is Appraiser L required to identify Appraiser M as having provided significant appraisal assistance? - CORRECT ANSWER Yes, Appraiser M must be identified in the report certification as having provided significant appraisal assistance
An individual provides assistance to an appraiser by researching, selecting, and verifying sales for use in the sales comparison approach. The individual does not participate in any other aspect of the appraisal process. Which statement is TRUE about this individual's assistance in this assignment? - CORRECT ANSWER This is significant appraisal assistance, which requires disclosure in the report.
An appraiser is engaged to appraise a single-unit residence. The client states that the appraiser may not inspect the subject property, but instead must rely on information provided by a third-party inspector. The report from the third-party inspector does not contain sufficient information for the appraiser to identify the subject property's relevant characteristics, and no additional information is available from other sources, including public records. The client does not permit the appraiser to expand the scope of work to include gathering the needed information. What is the appraiser's best option in this situation? - CORRECT ANSWER Withdraw from the assignment
An appraiser hires an individual to set appointments, answer emails, and type reports in her appraisal firm. The individual performs no research or analysis. Is this individual providing significant appraisal assistance? - CORRECT ANSWER No, because these tasks are clerical assistance
Except when __________, an appraiser must identify the client in an appraisal or appraisal review report - CORRECT ANSWER Specifically requested by the client not to do so
An appraiser has an obligation under USPAP to ensure that a report contains sufficient information so that: - CORRECT ANSWER Intended users can understand it properly
Which of these is NOT an example of a "reasonable step" that an appraiser should take to ensure that a sufficient quantity and quality of data has been collected in a mass appraisal assignment? - CORRECT ANSWER Only licensed individuals may participate in data collection and screening
An appraiser is preparing a Restricted Appraisal Report but wants to provide detailed support and rationale for the highest and best use opinion in the report. What is the appraiser's best course of action? - CORRECT ANSWER Exceed the minimum requirements and provide the detailed information in the Restricted Appraisal Report
Which of these identifications of other intended users would be appropriate in a Restricted Appraisal Report? - CORRECT ANSWER "Very Big Bank, Inc."
A client's desire for a concise report of an appraisal would affect: - CORRECT ANSWER The reporting process used by the appraiser
Which of these content items must be summarized in a Restricted Appraisal Report? - CORRECT ANSWER The results of the analysis of the subject's sales, agreements of sale, options, and listings
Which of these is NOT required to be included in a Restricted Appraisal Report prepared in compliance with USPAP? - CORRECT ANSWER The definition of value
An appraiser is performing an appraisal assignment for a client, which is a government agency. The appraiser will be reporting the appraisal in a Restricted Appraisal Report. Is the appraiser required to provide this client with access to the appraisal workfile? - CORRECT ANSWER No
An appraiser is asked to perform a real property appraisal that is based on an exterior-only inspection of the subject property from the street. The appraiser makes the inspection and completes the appraisal. In the report, the appraiser must: - CORRECT ANSWER Disclose the extent of the property inspection
An appraiser develops an appraisal and reports it in a Restricted Appraisal Report. The workfile in support of the report must be sufficient to: - CORRECT ANSWER Produce an Appraisal Report
An appraiser is engaged by a client to prepare a market analysis for a certain type of property in a defined geographic area. No specific subject property is identified and no value opinion is developed. Does USPAP require the appraiser to create and maintain a workfile for this assignment? - CORRECT ANSWER No
An appraiser prepares a cost approach as part of a real property appraisal assignment and reports the appraisal in a Restricted Appraisal Report. The appraiser uses a published cost service as the source for the estimate of cost new for the property improvements. In the workfile, is the appraiser required to copy and include the pages from the published cost service? - CORRECT ANSWER No, the workfile may contain a reference to the location of this information.
An appraiser is performing an appraisal for a government agency. No testimony is required in this assignment. The agency has a regulation that requires appraisers to retain their appraisal workfiles for 4 years after preparation. Is this a jurisdictional exception? - CORRECT ANSWER No, an appraiser may comply with both the regulation and USPAP by retaining the workfile for 5 years
An appraiser completes a mortgage lending appraisal and reports it on the URAR form. The lender's underwriter contacts the appraiser and asks the appraiser to remove one of the comparable sales because the underwriter does not think it is sufficiently similar to the subject. What should the appraiser do? - CORRECT ANSWER Not remove the comparable sale, because doing so might result in a misleading report
An appraiser completes an appraisal for a client and transmits the report. Two weeks later, the client contacts the appraiser and asks the appraiser to add a new intended user to the report and re-send it. What should the appraiser do? - CORRECT ANSWER Treat the request as a new assignment
An appraiser completes an appraisal and transmits the report to the client. Several weeks later, another lender contacts the appraiser and asks the appraiser to provide a "reliance letter" that will enable that other lender to rely on the report for their own use. Which statement is TRUE about this situation? - CORRECT ANSWER The appraiser should not issue such a letter because it would essentially add an intended user after the fact.
An appraiser wishes to perform an assignment but does not possess the knowledge and experience to complete it competently. The appraiser notifies the client of the lack of knowledge and experience and takes steps to obtain the knowledge and experience. Actions taken by the appraiser to obtain the knowledge and experience might include: - CORRECT ANSWER All of these
An appraiser completes an appraisal for a mortgage lender and transmits the report. A month later, a different lender asks the appraiser to readdress the report to them. The appraiser decides to treat the request as a new assignment. Which statement is TRUE regarding this situation? - CORRECT ANSWER The appraiser is required to disclose to the new client that he or she previously provided appraisal services on the subject property.
An appraiser completes an appraisal assignment for Lender A and transmits the report. Several days later, Lender B contacts the appraiser and asks the appraiser to change the client name on the appraisal report to Lender B and transmit the report to them. What should the appraiser do? - CORRECT ANSWER Treat the request from Lender B as a new assignment
An appraiser is required by USPAP to disclose any prior services that he or she performed regarding the subject property within: - CORRECT ANSWER Three years prior to the agreement to perform the assignment
An appraiser has agreed to perform an appraisal assignment on a property. During the appraiser's inspection of the property, he suddenly realizes that approximately two years prior, he had performed an appraisal review of an appraisal on this property that was completed by another appraiser. What should the appraiser do in accordance with USPAP? - CORRECT ANSWER Immediately disclose to the client that he provided a service regarding the subject property within the prior three years
In an appraisal review, a reviewer opines that some of the adjustments in the work under review are unreasonable. Which statement is TRUE regarding this situation? - CORRECT ANSWER The reviewer is not required by USPAP to provide alternate adjustments.
A reviewer is performing an appraisal review on an appraisal report prepared by a newly certified appraiser. The reviewer finds numerous significant errors in the report. The reviewer takes pity on the appraiser and only comments on some of the errors in his appraisal review report, and is careful to minimize their significance. Which statement is TRUE regarding this situation? - CORRECT ANSWER The reviewer has potentially violated USPAP by performing an appraisal review with bias.
An appraiser is performing an appraisal review on an Appraisal Report. The report being reviewed contains no indication that the original appraiser had performed a sales comparison analysis; it merely states a value conclusion. Is it appropriate for the reviewer to state that no analysis was performed in developing the appraisal? - CORRECT ANSWER Yes, such a statement would be appropriate
In an Appraisal Report, an appraiser is required to ________ the information analyzed, the appraisal methods and techniques, and the reasoning that supports the analyses, opinions, and conclusions. - CORRECT ANSWER Summarize
A client requests that an appraiser provide additional comparable sales after a report has already been completed and transmitted. Does this change the scope of work of the appraisal? - CORRECT ANSWER Yes
An appraiser completes an appraisal based solely on the sales comparison approach and transmits the report to the client, a mortgage lender. The client subsequently requests that the appraiser complete the cost approach. Which statement is TRUE regarding this situation? - CORRECT ANSWER This request changes the scope of work but does not automatically create a new assignment.
An individual is both an appraiser and a real estate broker. Two years ago, she provided brokerage services on a property. Today, she has been asked to appraise the property by a potential client. Which statement is TRUE regarding this situation? - CORRECT ANSWER She must disclose to the client that she provided brokerage services on the property within the prior three years.
An appraiser is working on an appraisal assignment for which she is not required to inspect the subject property. Instead, information about the property's physical characteristics was given to her by the client. The appraiser believes the information provided by the client is not sufficient for her to develop a credible opinion of value. Which of these is NOT a permissible course of action for the appraiser? - CORRECT ANSWER Base the appraisal on the hypothetical condition that the information provided by the client is sufficient
An appraiser has agreed to perform an appraisal on a property. The appraiser is not inspecting the subject property; instead the appraiser will use information from a third-party inspector's report to identify the relevant physical characteristics. Under what circumstances would the appraiser NOT use an extraordinary assumption in this assignment? - CORRECT ANSWER If the appraiser determines the information in the inspection report is reliable and will allow the development of credible assignment results
Is an appraiser permitted by USPAP to perform an appraisal on a property if the property inspection is to be performed by a third party? - CORRECT ANSWER Yes, but the appraiser must certify in the report that he or she did not inspect the property [Show Less]