Chapter 6 - Jurisdictional Exception Rule

Question 1

If USPAP compliance is mandated by federal law, no state or local law can create a jurisdictional exception.

Answer 1

True

Question 2

If an assignment involves a jurisdictional exception, what must an appraiser do?

Answer 2

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

Question 3

When a law or regulation precludes compliance with any part of USPAP, appraisers must:

Answer 3

Comply with that law or regulation

Question 4

What is the purpose of the JURISDICTIONAL EXCEPTION RULE?

Answer 4

To provide a saving or severability clause to preserve the balance of USPAP

Question 5

The use of the JURISDICTIONAL EXCEPTION RULE in an assignment is a matter of choice by an appraiser.

Answer 5

False

Question 6

Is it permissible to use instructions from an attorney as a basis for a jurisdictional exception?

Answer 6

No - Only a law or regulation can establish a jurisdictional exception.

Question 7

As used in the JURISDICTIONAL EXCEPTION RULE, the term “law” includes ____________.

• Court-made laws
• Administrative rules and ordinances
• Legislative laws

Answer 7

All of these answers

Question 8

An appraiser was recently hired to perform an appraisal assignment for a government agency. The agency has a regulation that requires the appraiser to provide the appraisal report to other government agencies if requested. Does this regulation create a jurisdictional exception to the Confidentiality section of the ETHICS RULE?

Answer 8

No. The confidentiality section of the ETHICS RULE states that parties specifically authorized by client & third parties as may be authorized by due process of law are acceptable to disclose information with.

Question 9

A state passes a law requiring appraisers to keep their workfiles for 10 years after preparation. Is this a jurisdictional exception under USPAP?

Answer 9

No - Does not preclude an appraiser from complying with USPAP

Question 10

When does a jurisdictional exception occur in an assignment?

Answer 10

It is automatic when a law precludes compliance with a part of USPAP

Question 11

Which of these would be considered an example of a jurisdictional exception in an appraisal assignment?

• A probate court paying appraisers based on the value of the subject property
• A client requesting a specific definition of value
• An attorney asking an appraiser not to analyze the prior sales history of the subject property
• State regulations requiring appraisers to keep workfiles for six years

Answer 11

A probate court paying appraisers based on the value of the subject property