USPAP Practice Exam 100 Questions with Answers
The PREAMBLE states the purpose of USPAP is
to promote and maintain a high level of public _____
in
... [Show More] appraisal practice by establishing requirements for appraisers.
A) Awareness
B) Recognition
C) Support
D) Trust - CORRECT ANSWER D) Trust
USPAP benefits providers of appraisal services and
a. the Appraisal Standards Board.
b. disinterested parties.
c. federal officials.
d. users of appraisal services. - CORRECT ANSWER D) Users of appraisal services
When acting in the role of an appraiser, all of the following require compliance with all sections of USPAP, including the applicable STANDARDS 1 through 10, EXCEPT for
a. appraisal.
b. appraisal consulting.
c. appraisal course development.
d. appraisal review. - CORRECT ANSWER C) Appraisal course development
A valuation service performed by an individual acting as an appraiser requires the appraiser to
a. hold a valid appraiser credential.
b. inquire about the intended user's expectations.
c. keep confidential the capacity in which he is performing.
d. not be impartial in respect to the client. - CORRECT ANSWER B) Inquire about the intended user's expectations.
When an individual is performing valuation services outside of appraisal practice, that individual must be careful to
a. charge a fee for his service.
b. invoke jurisdictional exception.
c. not misrepresent his role.
d. refer to the party engaging him as "the client:' - CORRECT ANSWER C) Not misrepresent his role
When choosing to provide a valuation service as an appraiser or in some other capacity, great care must be taken to
a. charge a fee accordingly.
b. keep that capacity confidential.
c. maintain public trust.
d. not violate the obligations of an Advisory Opinion. - CORRECT ANSWER C) Maintain public trust
A real property appraiser teaching appraisal is engaged in
a. appraisal consulting services.
b. appraisal review.
c. appraisal practice with no applicable Standards (1-10).
d. valuation service outside of appraisal practice. - CORRECT ANSWER C) Appraisal practice with no applicable Standards (1-10)
A lender has telephoned an appraiser to determine the high and low sales prices in the past year that took place in the Green Hills Subdivision. No mention was made of a subject property by the lender. The appraiser has supplied a list of all of the sales within the past year in the subdivision and billed the lender for service. The service being provided by the appraiser is
a. appraisal practice with performance and record keeping obligations.
b. appraisal practice with no performance standards or record keeping requirements.
c. an appraisal that must be developed by 1:he applicable Standard.
d. not permitted by USPAP. - CORRECT ANSWER B) Appraisal practice with no performance standards or record keep requirements
In accordance with USPAP, which is NOT tin expectation when acting in the role of an appraiser?
a. adhering to the definition of appraiser
b. holding a state license or certification
c. maintaining public trust
d. meeting expectations of clients and other intended users when an appraiser is identified - CORRECT ANSWER B) Holding a state license or certification
Compliance with USPAP is required when obligated by
a. agreement only.
b. law only.
c. regulation only.
d. agreement, law, or regulation. - CORRECT ANSWER D) Agreement, law, or regulation
When an appraiser is providing a service other than an appraisal, appraisal review, or an appraisal consulting service, which would NOT apply?
a. DEFINITIONS
b. JURISDICTIONAL EXCEPTION RULE
c. SCOPE OF WORK RULE
d. Statements - CORRECT ANSWER C) SCOPE OF WORK RULE
12. Zachary's client instructs htm to report a specific property value as a condition of the assignment. The assignment
a. permits the appraiser's independence.
b. is allowed as long as the appraiser confirms the value.
c. is an acceptable assignment condition.
d. is a violation of the ETHICS RULE. - CORRECT ANSWER D) is a violation of the ETHICS RULE
13. Which of these activities does the Conduct section of the ETHICS RULE prohibit?
a. appraisal consulting
b. criminal conduct
c. objective opinions in appraisal practice
d. valuation services outside of appraisal practice - CORRECT ANSWER B) Criminal Conduct
14. Jack appraised a residential dwelling that is located across the street from a factory that he determined is negatively affecting the value of the subject property. Jack applied a location adjustment in his sales comparison approach. However, the client asked that the factory not be discussed in the appraisal report. Since Jack addressed the condition with an adjustment, has he complied with USPAP?
a. no, because USPAP requires explanation for each adjustment
b. no, omitting the discussion could produce a misleading report
c. yes, since an adjustment was included
d. yes, since the client requested the omission - CORRECT ANSWER B) No, omitting the discussion could produce a misleading report.
15. Anthony received an appraisal assignment for a property that was previously appraised by him. He understands that he must handle confidential information appropriately. What else must Anthony do?
a. get a release from the client of the prior
assignment
b. make proper disclosure regarding the prior assignment
c. refuse the assignment since re-appraisal of the same property is prohibited under USPAP
d. update the prior assignment and use it for the new assignment - CORRECT ANSWER B) Make proper disclosure regarding the prior assignment.
16. Marcus was hired to appraise a home that he had previously appraised one year ago. May Marcus accept the assignment?
a. yes, as long as he discloses the previous service on the property to the client and in the subsequent report certification
b. yes, as long as he does not disclose that he had previously appraised the property
c. no, an appraiser may not accept an assignment on the same property within three years of the prior assignment
d. no, since an appraisal was recently performed, he may be biased about certain aspects of the home - CORRECT ANSWER A) yes, as long as he discloses the previous service on the property to the client and in the subsequent report certification
A real property appraiser has paid a fee to procure an appraisal assignment. According the Management section of the ETHICS RULE, where must the fee be disclosed?
a. in the body of the appraisal report
b. in the certification and any transmittal letter
c. in the engagement letter
d. in a separate disclosure to the client - CORRECT ANSWER B) in the certification and any transmittal letter
Josh received an appraisal request from a lender-client who told him to immediately call if the value on the property is less than the amount stipulated by the lender, as he doesn't intend to pay for an appraisal that won't benefit his position. Will acceptance of this assignment be in compliance with USPAP?
a. yes, it is permissible for a client to call the client with the value prior to adequately supporting the opinion
b. yes, this would be a hypothetical condition, which is acceptable
c. no, an appraiser may not accept an assignment with unacceptable assignment conditions
d. no, it is not permissible unless Josh discloses this fact in the certification per STANDARD 2 - CORRECT ANSWER C) no, an appraiser may not accept an assignment with unacceptable assignment conditions
Which of the following would NOT be considered an unacceptable fee arrangement?
a. fee based on the appraised value of the subject property
b. fee based on the volume of total business from a particular client
c. fee contingent on the closing of the subject's loan transaction
d. fee contingent on winning a court case where the appraiser provided an appraisal - CORRECT ANSWER B) fee based on the volume of total business from a particular client
According to the Management section of the ETHICS RULE, an appraiser affixes bis or her signature in an assignment/or what purpose?
a. affirmation of his identity
b. authenticate the work of the appraiser
c. certify recognition and acceptance of USPAP responsi bi Ii ties
d. comply with federal copyright law - CORRECT ANSWER C) certify recognition and acceptance of USPAP
responsibilities.
A real property appraiser has taken great precaution to safeguard his electronic signature; however, the signature bas been illegally obtained and used without the appraiser's authorization. Has the appraiser violated USPAP?
a. yes, an appraiser is always liable regardless of how the signature was obtained
b. yes, this is one of many examples of the danger of using electronic signatures
c. no, if the appraiser used great care, he is not responsible for unauthorized use
d. no, USPAP does not reference the issue - CORRECT ANSWER C) no, if the appraiser used great care, he is not
responsible for unauthorized use
Confidential information can be disclosed to persons specifically authorized by the client, state appraisal agencies, third parties as authorized by law, or a(n)
a. attorney at law.
b. duly authorized professional peer review committee.
c. party who paid for the appraisal.
d. potential client who is using the information to place the appraiser on an "approved" list. - CORRECT ANSWER B) duly authorized professional peer review committee.
Anne, a real property appraiser, recently completed an appraisal assignment for a lender-client of a residential property for a refinance transaction. The property owner bas just called Anne to inquire about the appraised value. Which is a true statement?
a. Anne must get consent from the lender prior to disclosing the appraised value.
b. If the property owner paid for the appraisal, he is an intended user.
c. The property owner is entitled to the information.
d. Under no circumstance may Anne disclose the appraised value. - CORRECT ANSWER A) Anne must get consent from the lender prior to disclosing the appraised value.
When an appraiser is offered the opportunity to appraise a property for a new client that was the subject of a prior assignment, and the appraiser is not bound to keep the previous assignment confidential, the appraiser must
a. decline the assignment.
b. disclose all confidential information.
cl obtain a release from the client in the first assignment.
d. protect any confidential information from the first assignment and disclose the prior appraisal. - CORRECT ANSWER D) protect any confidential information from the first assignment and disclose the prior appraisal.
Which best defines a professional peer review committee?
a. Appraisal Standards Board
b. committee comprised of other appraisers
c. lender organization approving appraisers
d. state investigator board - CORRECT ANSWER B) Committee comprised of other appraisers
Anthony and Beth acted as co-appraisers on an appraisal assignment and Anthony, Beth's supervisor, bas custody of the workfile. Beth bas received a court order to appear with, a true copy of the appraisal report kept in the workfile in a case involving possible mortgage fraud. Must Anthony provide the copy of the report to Beth so that she may comply with .the court order?
a. yes, but he must first obtain a letter of authorization from the client to release the appraisal report
b. yes, to be compliant with due process of law, Anthony must provide the appraisal report copy
c. no, since Beth does not have custody of the workfile, she is not obligated to provide a copy of the appraisal report
d. no, the Gramm-Leach-Bliley Act of 1999 prohibits appraisers from releasing personal information about clients - CORRECT ANSWER B) yes, to be compliant with due process of law, Anthony must provide the appraisal report copy
When an appraiser is providing a value opinion using an effective date in the past (retrospective), when does the appraiser's competency apply?
a. at the time of the assignment
b. date the report is submitted to the client
cl effective date of the report
d. when the report is signed by the appraiser - CORRECT ANSWER A) At the time of the assignment
Which would NOT be considered a competency factor in a particular assignment?
a. analytical method
b. appraiser's credentials
c. intended use
d. laws and regulations - CORRECT ANSWER B) Appraiser's credentials
If an appraiser is unable to comply with the COMPETENCY RULE to complete an assignment competently, he is obligated to
a. decline or withdraw from the assignment.
b. not charge for the assignment.
c. notify the licensing authority in his jurisdiction.
d. take additional education. - CORRECT ANSWER A) decline or withdraw from the assignment.
The Conduct section of the ETHICS RULE requires the appraiser to disclose previous services as an appraiser or in any capacity regarding the subject property/or what period of time prior to accepting an assignment?
a. one year
b. two years
c. three years
d. five years - CORRECT ANSWER C) three years
Disclosure of fees, commissions, and things of value given in connection with the procurement of an assignment must be disclosed in what part of a report or specific document?
a. addenda of the report
b. certification and any letter of transmittal
c. engagement letter for an assignment
d. specific section of the report - CORRECT ANSWER B) certification and any letter of transmittal
Authorization to affix or use an appraiser's signature can be granted only
a. by a supervisory appraiser.
b. on an assignment-by-assignment basis.
c. when authorized by the client.
d. within the appraiser's own firm. - CORRECT ANSWER B) on an assignment-by-assignment basis.
According to the Record Keeping section of the ETHICS RULE, what information is NOT required to be in a workfile?
a. documentation to support the appraiser's opinions and conclusions
b. references to the location of other documentation not in the workfile
c. specific names of other intended users
d. true copies of any written reports - CORRECT ANSWER C) specific names of other intended users
Which is NOT an element of problem identification?
a. assignment conditions
b. client and other intended users
c. effective date of the opinions and conclusions
d. reporting option to be used in the assignment - CORRECT ANSWER D) reporting option to be used in the assignment
Most of the information necessary for the appraiser to identify the problem in a particular assignment
a. must be identified without client input.
b. requires communication with the client.
c. reveals itself while gathering data.
d. will be the same in every assignment. - CORRECT ANSWER B) requires communication with the client.
An appraiser's peer is defined as
a. another appraiser possessing the same credentials.
b. appraisers who work in the same geographic area.
c. other appraisers who have expertise and competency in a similar type of assignment.
d. a regularly intended user in a similar assignment. - CORRECT ANSWER C) other appraisers who have expertise and competency in a similar type of assignment.
When can an extraordinary assumption be used regarding information not available to the appraiser due to assignment conditions?
a. it cannot be used
b. when the client directs it be used
c. when credible assignment results can still be developed
d. when there are no other intended users - CORRECT ANSWER C) when credible assignment results can still be developed
Which is NOT an option when an appraiser finds circumstances that change the research and analysis that he originally planned at the onset of an assignment?
a. disregard the circumstances and proceed as originally planned
b. modify the scope of work
c. use an extraordinary assumption if credible results could be obtained
d. withdraw from the assignment - CORRECT ANSWER A) disregard the circumstances and proceed as originally planned
The scope of work disclosed in an appraisal report must include the
a. appraiser's final conclusions and value opinion.
b. initially planned scope of work at the onset of the assignment.
c. intended use in the assignment.
d. scope of work that was actually performed. - CORRECT ANSWER D) scope of work that was actually performed.
Which is NOT a force that could cause an appraiser to invoke the JURISDICTIONAL EXCEPTION RULE?
a. administrative rules and ordinances
b. attorney at law
c. constitutional law
d. legislative and court-made law - CORRECT ANSWER B) attorney at law
When the JURISDICTIONAL EXCEPTION RULE is invoked, who determines if the Rule is appropriate?
a. the appraiser
b. the client
c. the intended users
d. state and local authorities - CORRECT ANSWER A) the appraiser
Scope of work is the type and extent of research and ____ in an assignment.
a. analysis
b. diligence
c. inspection
d. reporting - CORRECT ANSWER A) Analysis
Which would NOT be part of the scope of work decision?
a. extent of inspection
b. extent of property identification
c. reporting option and format
d. type and extent of data to be researched - CORRECT ANSWER C) reporting option and format
The scope of work in each particular assignment must be determined when the assignment involves
a. an appraisal, appraisal review, or appraisal consulting.
b. any appraisal practice.
c. intended users other than the client.
d. valuation services performed by an appraiser. - CORRECT ANSWER A) an appraisal, appraisal review, or appraisal consulting.
When deciding the scope of work, an appraiser must be prepared to demonstrate that the scope of work is sufficient to
a. produce credible results.
b. reconcile the conclusions.
c. result in a value conclusion.
d. satisfy the client. - CORRECT ANSWER A) produce credible results.
When must an appraiser disclose research and analysis that was not performed in an assignment?
a. as part of the scope of work disclosure of every assignment
b. if there are intended users other than the client identified in the assignment
c. in all assignments for which a written report • s being provided
d. when it is necessary for intended users to understand the report properly and not be misled - CORRECT ANSWER D) when it is necessary for intended users to understand the report properly and not be misled
An appraiser must not allow assignment conditions to limit the scope of work to such a degree that
a. an appraised value is equal to the value needed for the intended use.
b. assignment results are not credible in context of the intended use.
c. intended users cannot understand the scope of work performed.
d. the appraiser cannot physically inspect the property - CORRECT ANSWER B) assignment results are not credible in context of the intended use.
The JURISDICTIONAL EXCEPTION RULE applies when USPAP is
a. in agreement with law or public policy.
b. less than required by federal law or regulation.
c. precluded by law or regulation.
d. voided entirely by state and local law or regulation. - CORRECT ANSWER C) precluded by law or regulation.
Which is NOT one of the three general obligations of an appraiser under STANDARD 1?
a. correctly complete research and analysis necessary to produce credible results
b. determine the scope of work necessary
c. identify the problem to be solved
d. report the opinions and conclusions reached by an appraiser - CORRECT ANSWER D) report the opinions and conclusions reached by an appraiser
According to the Comment to Standards rule
1-2 of USPAP, an appraiser must dev.-!lop an opinion of reasonable exposure lime whenever he
a. considers it meaningful to the client and intended users.
b. is developing an opinion of market value.
c. is performing the appraisal for a sales transaction.
d. notes that the property is currently on the market. - CORRECT ANSWER B) is developing an opinion of market value.
Standards Rule 1-3 of USPAP, in part, requires which action in a market value assignment?
a. application of the approaches to value
b. client consent to proceed with the assignment
c. development of an opinion of highest and best use
d. disclosure of the scope of work performed - CORRECT ANSWER C) development of an opinion of highest and best use
According to Standards Rule 1-4 of USPAP, what quantity of data must be analyzed when a sales comparison approach is necessary for credible assignment results?
a. all that can be located within one mile from the subject property
b. any sales that occurred within one year of the effective date in the assignment
c. no fewer than three comparable sales
d. such comparable sales as are available - CORRECT ANSWER D) such comparable sales as are available
When developing an income approach, Standards Rule 1-4 of USPAP, in part, requires an appraiser to base projections of future rent or income potential and expenses on
a. actual income and expense data of the property.
b. the basis of an extraordinary assumption.
c. nationally published income and expense data.
d. reasonably clear and appropriate evidence. - CORRECT ANSWER D) reasonably clear and appropriate evidence.
Standards Rule 1-2 of USPAP prohibits an appraiser from allowing the or a ___ client's objectives to cause the assignment results to be biased.
a. intended use of an assignment
b. neighborhood composition
c. property's relevant characteristics
d. quality and quantity of data analyzed - CORRECT ANSWER A) intended use of an assignment
Prospective value opinions occur when the value opinion is expressed
a. as a value opinion expressed in relationship to a monetary benchmark.
b. as an amount greater than the appraiser's value opinion.
c. as of an effective date in the future.
d. in an assignment using hypothetical conditions. - CORRECT ANSWER C) as of an effective date in the future.
What is an appraiser NOT required to do when the subject property is a fractional interest, physical segment, or a partial holding?
a. analyze the market
b. determine the scope of work
c. reconcile the conclusions
d. value the whole property - CORRECT ANSWER D) value the whole property
Standards Rule 1-5 states that appraisers must analyze agreements of sale, options, and listings of the subject property current as of the effective date of an appraisal, in a market value assignment, if it is
a. a matter of public record.
b. available in the normal course of business.
cl not deemed confidential information.
d. required by the client. - CORRECT ANSWER B) available in the normal course of business.
Standards Rule 2-1 of USPAP requires that appraisal reports contain to enable ___ intended users to understand the report properly.
a. definitions of appraisal terms
b. exhibits and photographs
c. Simple and common language
d. sufficient information - CORRECT ANSWER D) sufficient information
Standards Rule 2-2 of USPAP requires an appraiser to which reporting option ___ is being used in the assignment.
a. document in the workfile
b. keep confidential
c. prominently state in the report
d. specify in the certification - CORRECT ANSWER C) prominently state in the report
An appraiser bas agreed to physically inspect the subject property in a particular appraisal assignment. q the appraiser reviews photographs and other documents that illustrate the relevant characteristics of the property and indicates in the certification language that he bas physically inspected the property, the report would be
a. acceptable as long as another appraiser actually visited the property.
b. based upon an extraordinary assumption that the documents were correct.
cl considered part of a service outside of appraisal practice.
d. misleading and in violation of the Conduct section of the ETHICS RULE. - CORRECT ANSWER D) misleading and in violation of the Conduct section of the ETHICS RULE.
STANDARD 2 does NOT
a. cover communication of a real property appraisal.
b. dictate the form, style, or format of an appraisal report.
c. dictate the Standards, Rules, and requirements that must be adhered to when completing an appraisal report.
d. detail the elements and certifications that must be part of every real property appraisal report. - CORRECT ANSWER B) dictate the form, style, or format of an appraisal report.
According to Standards Rules 2-2( a), (b ), and (c)(viii) of USPAP, regarding the information analyzed and methodology used in an assignment, the exclusion of ___ must be explained.
a. assignment results that are credible
b. determining the scope of work necessary
c. significant real property appraisal assistance
d. the sales comparison approach, cost approach, or income approach - CORRECT ANSWER D) the sales comparison approach, cost approach, or income approach
63. The contents of a workfile in support of a Restricted Use Appraisal Report must include sufficient information for an appraiser to produce a
a. Letter of Opinion.
b. Restricted Use Appraisal Report.
c. Self-Contained Appraisal Report.
d. Summary Appraisal Report. - CORRECT ANSWER D) Summary Appraisal Report.
Which report option permitted by USPAP "describes" information that is significant to the solution of the appraisal problem?
a. Narrative Appraisal Report
b. Restricted Use Appraisal Report
c. Self-Contained Appraisal Report
d. Summary Appraisal Report - CORRECT ANSWER C) Self-Contained Appraisal Report
The level of information necessary in a report and the reporting option chosen by an appraiser depends on the in an ___ assignment.
a. client's instructions
b. fee being charged
c. intended use and intended users
d. scope of work determined - CORRECT ANSWER C) intended use and intended users
An oral real property appraisal report, to the extent both possible and appropriate, must address the substantive matters of a
a. Restricted Use Appraisal Report.
b. Self-Contained Appraisal Report.
c. Summary Appraisal Report.
d. Transcript of testimony. - CORRECT ANSWER C) Summary Appraisal Report.
In developing an appraisal review, Sarah identified the work under review and the characteristics of that work, which tire relevant to the intended use and purpose of the appraisal review. What information should Sarah NOT include when developing her appraisal review?
a. any ownership interest in the property
b. credentials of the appraiser in the work under review
c. date of work under review and effective date of opinions
d. physical, legal, and economic characteristics of the property - CORRECT ANSWER B) credentials of the appraiser in the work under review
Jennifer is reviewing the analyses, opinions, and conclusions of an appraisal report. During this process, Jennifer disagrees with some of the analyses. What must she do?
a. decide whether the issues discovered are wcrthy of reporting
b. describe the faults of the appraiser who produced the work under review
c. develop reasons for any disagreement
d. obtain client approval to report the disagreements - CORRECT ANSWER C) develop reasons for any disagreement
Data and analysis provided by the reviewer to support a different opinion or conclusion in an appraisal review of a real property appraisal must match, at a minimum, the reporting requirements for a(n)
Report.
a. Appraisal Review
b. Restricted Use Appraisal
c. Self-Contained Appraisal
d. Summary Appraisal - CORRECT ANSWER D) Summary Appraisal
Christopher reviewed and signed the certification for an Appraisal Review Report. This means that Christopher accepts responsibility for the assignment results and contents of the report, as well as
a. all elements of the certification.
b. the elements of the certification that pertain to his contributions.
c. the general requirements of the report.
d. only the elements that he specifically indicates in the report. - CORRECT ANSWER A) all elements of the certification.
In a review of an appraisal report, when opinions and conclusions are expressed by the reviewer that concur or disagree with the opinions and conclusions in the work being reviewed, those opinions and conclusions must
a. advocate for the client's objectives.
b. be developed in accordance with the applicable development Standard.
c. be stated in a separate report.
d. not be considered an appraisal. - CORRECT ANSWER B) be developed in accordance with the applicable development Standard.
Which term is defined by USPAP as a mathematical expression of bow supply and demand/actors interact in a market?
a. business enterprise appraisal
b. highest and best use analysis
c. mass appraisal model
d. value opinion - CORRECT ANSWER C) mass appraisal model
Which Standard in USPAP expresses that the certification in compliance with this Standard is not intended to disturb an elected or appointed assessor's work plans or oaths in office?
a. STANDARD 4
b. STANDARD 6
c. STANDARD 7
d. STANDARD 9 - CORRECT ANSWER B) STANDARD 6
Standards Rule 4-2 of USPAP obligates an appraiser performing a real property appraisal consulting assignment to ensure that any opinion of value being used as a component of the analysis was developed in compliance with
a. STANDARD 1.
b. STANDARD 2.
c. STANDARD 3.
d. STANDARD 4. - CORRECT ANSWER A) STANDARD 1.
According to Standards Rule 5-2 of USPAP, if the consulting appraiser developed the value opinion used in the real property appraisal consulting assignment, the information must be reported within the consulting report in compliance with
a. the SCOPE OF WORK RULE.
b. STANDARD 1.
c. STANDARD 4.
d. Standards Rule 2-2(a), (b), or (c)(ii-x). - CORRECT ANSWER D) Standards Rule 2-2(a), (b), or (c)(ii-x).
In an appraisal for ad valorem taxation purposes, when only one property is the subject of the appraisal assignment, which development Standard would apply?
a. STANDARD 1
b. STANDARD 2
c. STANDARD 4
d. STANDARD 6 - CORRECT ANSWER A) STANDARD 1
What service is an appraiser providing when the purpose of the assignment is to report an opinion or recommendation where at least one opinion of value was a component of his analysis?
a. appraisal
b. appraisal consulting
c. appraisal review
d. other type of valuation service - CORRECT ANSWER B) appraisal consulting
In an assignment/or which the appraiser was hired by an appraisal management company {AMC), the appraiser may consider the lender the client as long as the AMC is
a. an authorized representative of the lender.
b. an intended user in the report.
c. not the party paying the appraiser.
d. party to a contractual agreement with the appraiser. - CORRECT ANSWER A) an authorized representative of the lender.
Intended users in a specific assignment must be identified
a. by name or type.
b. during the research and analysis process.
c. in the report certification.
d. without communication with the client. - CORRECT ANSWER A) by name or type
Within USPAP, the appraiser's ___ are {is) always specific to the intended use.
a. fee for the assignment
b. impartiality
c. level of independence
d. opinions and conclusions - CORRECT ANSWER D) opinions and conclusions
The intended use and the intended user of the appraiser's opinions and conclusions are identified ___ the assignment.
a. anytime during
b. at the time of
c. prior to the acceptance of
d. while determining the scope of work in - CORRECT ANSWER B) at the time of
While in the role of an appraiser, advocacy
a. is not permitted.
b. is permitted if disclosed in the report.
c. is permitted if requested by the client.
d. only applies to appraisal review. - CORRECT ANSWER A) is not permitted.
Craig, a real property appraiser, is not an expert in real estate law. In every assignment, he includes a disclosure stating this fact and that in his conclusions he is considering the property to have good and marketable title. Which best describes Craig's action?
a. assumption
b. extraordinary assumption
c. hypothetical condition
d. jurisdictional exception - CORRECT ANSWER A) Assumption
While appraising a property, Lydia could not check the furnace to see if it is in good working order due to the utilities being off at the time of the inspection. Since the home is relatively new and the components appear to be in good condition, Lydia has a reasonable basis to believe that the furnace is in satisfactory operating condition, but she is not certain. Therefore, Lydia bases her conclusion on a(n)
a. expected condition.
b. extraordinary assumption.
c. hypothetical assumption.
d. hypothetical condition. - CORRECT ANSWER B) extraordinary assumption.
If a property is known by the appraiser, on the effective date of the appraisal, to have an inoperative mechanical system component, but the appraiser is considering the component as if it were operating properly on that date for the purpose of his analysis, on what is the appraiser basing his opinions and conclusions?
a. anticipated condition
b. extraordinary assumption
c. hypothetical condition
d. hypothetical exception - CORRECT ANSWER C) hypothetical condition
Per the USPAP definition, in order for information to be considered confidential, the information must be
a. adverse to the property owner if disclosed.
b. brought to the appraiser's attention prior to commencement of the assignment.
c. defined as confidential by applicable law or regulation, but available from other sources.
d. identified by the client as confidential and not available from any other source. - CORRECT ANSWER D) identified by the client as confidential and not available from any other source.
Which best describes an appraiser's workfile?
a. certifies the appraiser's obligations to USPAP
b. documentation necessary to support the appraiser's analysis, opinions, and conclusions
c. communicates the appraiser's opinions, conclusions, or recommendations upon
completion of an assignment
d. the appraiser's opinions and conclusions developed specific to an assignment - CORRECT ANSWER B) documentation necessary to support the appraiser's analysis, opinions, and conclusions
Personalized evidence indicating authentication of the work performed by tl1e appraiser describes, in part, which term?
a. letter of transmittal
b. report
c. signature
d. workfile - CORRECT ANSWER C) signature
Which term is defined by USPAP DEFINITIONS as services pertaining to aspects of property value?
a. appraisal
b. appraisal consulting services
c. appraisal practice
d. valuation services - CORRECT ANSWER D) valuation services
The 10 Standards in USPAP establish a benchmark of criteria to measure
a. assignment results.
b. ethics and competency.
ct the scope of work.
d. value. - CORRECT ANSWER B) ethics and competency.
The PREAMBLE of USPAP sets the tone that the purpose of USPAP is to
a. create a benchmark for appraiser regulation and credentials.
b. establish a common set of standards for those using appraisal services.
c. promote and maintain a high level of public trust in appraisal practice.
d. satisfy federal requirements for appraisal regulation - CORRECT ANSWER C) promote and maintain a high level of public trust in appraisal practice.
In the USPAP Appraisal Process, which -is the final step in the development process?
a. problem identification
b. reconciliation and final value opinion
c. reporting the defined value opinions
d. research and analysis of data - CORRECT ANSWER B) reconciliation and final value opinion
Which entity or group is responsible for creating and maintaining the national appraiser examination?
a. Appraiser Qualifications Board
b. Appraisal Standards Board
c. Appraisal Subcommittee
d. Individual states - CORRECT ANSWER A) Appraiser Qualifications Board
Which is a direct responsibility of the Appraisal Subcommittee?
a. develop laws for licensed/certified appraisers
b. maintain the National Registry of licensed/certified real property appraisers
c. make an annual report to the Board of Trustees of the appraisal foundation.
d. Provide tuition grants to appraisers for appraisal education. - CORRECT ANSWER B) maintain the National Registry of licensed/certified real property appraisers
Statements on appraisal standards are
a. considered additional guidance material outside of USPAP.
b. for the purpose of illustrating USPAP in specific situations.
c. an integral part that has the full weight of USPAP.
d. not included in USPAP, but rather addenda. - CORRECT ANSWER C) an integral part that has the full weight of USPAP.
Which board exercises all authority and power over the subject, style, content, and substance of USPAP and other communications related to Standards?
a. Appraiser Qualifications Board
b. Appraisal Standards Board
ca Appraisal Subcommittee
d. Board of Trustees - CORRECT ANSWER B) Appraisal Standards Board
Which board establishes minimum education, experience, and examination requirements for real property appraisers to obtain certification?
a. Appraiser Qualifications Board
b. Appraisal Standards Board
c. Appraisal Subcommittee
d. Board of Trustees - CORRECT ANSWER A) Appraiser Qualifications Board
Which entity ensures that real estate appraisers who could expose the United States to financial loss are sufficiently trained and tested?
a. Appraisal Standards Board
b. Appraisal Subcommittee
c. Financial Institutions Reform Recovery and Enforcement Committee
d. state appraisal boards - CORRECT ANSWER B) Appraisal Subcommittee
Shelia had concerns about an appraisal situation, and she was uncertain how to proceed. Sheila then consulted the USPAP Advisory Opinions, which
a. establishes new standards or interprets existing standards.
b. illustrates the applicability of USPAP in specific situations.
c. offers opinions and advice that are presented and approved after public comment.
d. supplements the USPAP Standards and Rules. - CORRECT ANSWER B) illustrates the applicability of USPAP in specific situations.
Which would NOT be an example of an appraisal consulting assignment?
a. conclusion of the benefit of a proposed improvement versus its cost
b. opinion of highest and best use based on appraised value of potential uses
c. recommendation of the ideal improvement for a property based on an appraisal
d. value opinion of a completed development project - CORRECT ANSWER D) value opinion of a completed development project [Show Less]