ASA USPAP Flashcards
(167 cards)
1
Q
in 1929, the first nationally recognized standards for appraisal practice was published by ___________
A
National Association of Real Estate Boards (now known as the National Association of REALTORS)
2
Q
Federal agencies that insure, guarantee, or purchase mortgages
A
Federal Housing Administration (FHA);
Dept. of Veteran Affairs (VA); and
Federal National Mortgage Association (Fannie Mae).
3
Q
What did Title XI of the Federal Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), also known as the Savings and Loan Bailout Bill, do?
A
It required the Federal Reserve Board and other federal agencies to issue regulations to protect federal financial and public policy interests in real estate transactions requiring an appraiser.
4
Q
Which federal law recognized the Uniform Standards of Professional Appraisal Practice as the generally accepted standards of appraisal practice?
A
Title XI of the Federal Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), also known as the Savings and Loan Bailout Bill.
5
Q
What is the name of the committee that eventually became to be known as USPAP?
A
the “ad-hoc” committee.
6
Q
What was the “ad-hoc” committee?
A
eight organizations in the US and the Appraisal institute of Canada formed to develop professional standards that would eventually become the USPAP.
7
Q
What are the four boards of The Appraisal Foundation (“TAF”)?
A
a) The Appraiser Qualifications Board (“AQB”);
b) The Appraisal Standards Board (“ASB”);
c) The Board of Trustees (“BOT”); and
d) The Appraisal Practices Board (“APB”).
8
Q
When was TAF established?
A
1987.
9
Q
What is the expressed purpose of USPAP?
A
…promoting and preserving the public trust in professional appraisal practice.
10
Q
Which TAF boards have the task of “cultivating greater trust and confidence in professional appraisal practice?”
A
the AQB and ASB
with support from the sponsoring organizations of TAF
11
Q
Trust includes the attributes of:
5 attributes
A
i) specialized knowledge;
ii) experience;
iii) objectivity (impartiality);
iv) independence; and
v) integrity.
12
Q
Is TAF a private entity or government agency?
A
TAF is a private entity.
13
Q
How does USPAP achieve legal authority?
A
USPAP achieves legal authority by the adoption, citation, or implementation by govt. agencies through regulation or administrative actions, or by private enterprise in the form of contract requirements.
14
Q
Is TAF a professional appraisal organization?
A
no.
15
Q
Is TAF a membership organization?
A
no.
16
Q
What is TAF?
A
a) an org. specifically authorized by Congress regarding real property appraiser qualifications and appraisal standards;
b) an organization made up of other organizations.
17
Q
How is TAF funded?
A
TAF is funded by federal grants, sales of publications and services, and from “sponsoring organizations.
18
Q
What are the three categories of TAF sponsoring organizations?
A
appraisal sponsors (non profit appraisal orgs.);
affiliate sponsors (non profit orgs. with an interest in appraising); and
international sponsors (non and for profit orgs. based outside of the US with an interest in valuation).
19
Q
What are TAF’s three advisory councils?
A
a) The Appraisal Foundation Advisory Council (TAFAC);
b) The Industry Advisory Council (“IAC”); and
c) The Valuers Global Forum (“VGF”).
20
Q
What is the purpose of TAFAC?
A
The purpose of TAFAC is to involve the public in the development of appraisal standards and appraiser qualifications.
21
Q
Who comprises TAFAC?
A
TAFAC is comprised of non-profits which represent appraisers, financial institution regulators, the secondary mortgage market, the private mortgage insurance industry, real estate brokers, and home builders.
22
Q
What is the purpose of the IAC?
A
The purpose of the IAC is to allow for-profit entities an opportunity to provide input to TAF.
23
Q
Who comprises the IAC?
A
The IAC is made up of for-profit organizations that represent appraisal companies, lending institutions, insurers, brokerage companies, relocation companies, and others.
24
Q
What is the purpose of the VGF?
A
the VGF provides international information and support to TAF, the ASB and the AQB.
25
What is the VGF?
The Valuers Global Forum.
26
What is the IAC?
The Industry Advisory Council.
27
What is the TAFAC?
The Appraisal Foundation Advisory Council.
28
What is the role of the BOT?
The Board of Trustees exercises all authority and power and performs all functions of TAF, except for the authority, powers and functions that the Articles of Incorporation (or Bylaws) have directed/required to be exercised or performed by the AQB or the ASB.
29
What are the three primary functions of the BOT?
a) appoint members to the APB, AQB, and ASB;
b) to secure funding for TAF;
c) to monitor performance and oversee TAF and its three boards (APB, AQB, and ASB), and three advisory councils (IAC, IVC and TAFAC).
30
Assumes conditions contrary to known facts
hypothetical condition
31
Services performed by an individual acting as an
| appraiser
appraisal practice
32
Presumes as fact otherwise uncertain information
extraordinary assumption
33
A preference that precludes an appraiser’s impartiality
bias
34
The amount asked, offered, or paid for a property
price
35
Services pertaining to aspects of property value
valuation services
36
The act or process of developing an opinion of value
appraisal
37
An opinion that expresses an economic concept
value
38
___________ is a valuation service performed by an
| individual acting in the role of an appraiser.
Appraisal practice
39
When performing valuation services outside of
appraisal practice, appraisers must be careful not to
___________ their role.
misrepresent
40
For assignments others than appraisal or appraisal
review, there are no ___________or ____________
requirements in USPAP.
workfile or record keeping
41
What appraisal services are covered by USPAP?
Appraisal;
Appraisal review; and
Other services while acting in the role of an appraiser.
42
Providing transaction research is a service within ___________ that has no applicable Standards Rules in USPAP.
appraisal practice
43
T/F:
If an individual, who is both a business broker and an appraiser, provides a “value” opinion for a specific property to be used in an offering document, the service is always outside appraisal practice.
False
44
T/F:
| An individual must comply with USPAP when required by law, regulation, or agreement.
True
45
T/F:
| Appraisal practice pertains only to appraisals.
False
46
T/F:
| An appraiser has a professional responsibility to identify the capacity in which he or she is performing.
True
47
T/F:
| The purpose of USPAP is to promote and maintain a high level of public trust in professional appraisal practice.
True
48
Business brokerage, appraisal reviews, and business appraisals are all included within:
A. appraisal practice.
B. consulting.
C. valuation services.
D. market analysis.
C. valuation services.
49
The PREAMBLE of USPAP states that the Standards are:
A. only for appraisers.
B. for appraisers and users of appraisal services.
C. limited to appraisers who are licensed or certified by states.
D. only for users of appraisal services.
B. for appraisers and users of appraisal services.
50
According to USPAP, the party or parties who engage an appraiser in a specific assignment defines the:
A. client.
B. party who pays the fee.
C. appraiser’s peers.
D. other intended users.
A. client. (Correct Answer)
51
For real property appraisers, USPAP is enforced by:
A. The Appraisal Foundation.
B. the Appraisal Standards Board.
C. the Appraisal Subcommittee, through Congress.
D. state regulatory agencies.
D. state regulatory agencies. (Correct Answer)
52
USPAP is developed, interpreted, and amended by the:
A. Appraisal Standards Board.
B. Appraiser Qualifications Board.
C. Appraisal Subcommittee.
D. state regulatory agencies...
A. Appraisal Standards Board. (Correct Answer)
53
Which of the following best describes the Statements on Appraisal Standards?
A. offer advice, but do not carry the same weight as the Standards Rules
B. have the full weight of a Standards Rule and can be adopted by the ASB only after exposure and comment.
C. do not establish new standards or interpret existing standards but are issued to illustrate the applicability of appraisal standards in specific situations.
D. are not an integral part of the Uniform Standards and are extensions of the Standards Rules.
B. have the full weight of a Standards Rule and can be adopted by the ASB only after exposure and comment. (Correct Answer)
54
If an appraiser assumes a condition contrary to what exists on the effective date of the assignment results, but is used for the purpose of analysis, this is an example of:
A. an extraordinary assumption.
B. an assumption.
C. a limiting condition.
D. a hypothetical condition.
D. a hypothetical condition. (Correct Answer)
55
Why are USPAP Advisory Opinions issued?
A. to illustrate the applicability of appraisal standards.
B. to establish new appraisal standards.
C. to interpret existing standards.
D. to revise existing standards.
A. to illustrate the applicability of appraisal standards. (Correct Answer)
56
If an appraiser assumes as fact otherwise uncertain information, which, if found to be false could alter her opinions and conclusions, this is an example of:
A. an extraordinary assumption.
B. an assumption.
C. a limiting condition.
D. a hypothetical condition.
A. an extraordinary assumption. (Correct Answer)
57
A workfile must be maintained for:
A. written appraisal reports only.
B. oral appraisal reports only.
C. valuation services that are outside USPAP.
D. any assignment that is covered by Standards Rules.
D. any assignment that is covered by Standards Rules. (Correct Answer)
58
Advisory Opinions are best described as:
A. issued by the Appraisal Subcommittee.
B. subject to Fannie Mae requirements.
C. not part of USPAP, but included as reference material.
D. an alternative index to USPAP.
C. not part of USPAP, but included as reference material. (Correct Answer)
59
An intended user is:
A. anyone who uses the appraisal report.
B. only the party who pays for the appraisal report.
C. anyone who receives the appraisal report from the client.
D. a party who is identified by the appraiser based on communication with the client at the time of the assignment.
D. a party who is identified by the appraiser based on communication with the client at the time of the assignment. (Correct Answer)
60
A tangible object that is not real estate is:
A. real property.
B. personal property.
C. a business entity.
D. borrowed property.
B. personal property. (Correct Answer)
61
Appraisal practice includes only:
A. valuation services performed by an individual acting as an appraiser.
B. market value appraisals.
C. work completed by licensed and certified appraisers.
D. appraisal or appraisal review
A. valuation services performed by an individual acting as an appraiser. (Correct Answer)
62
Who maintains the official national registry of state certified and licensed appraisers?
A. Appraiser Qualifications Board.
B. Appraisal Standards Board.
C. The Appraisal Foundation.
D. Appraisal Subcommittee.
D. Appraisal Subcommittee. (Correct Answer)
63
T/F:
It is unethical to accept an assignment with the understanding that payment will be made if and when the transaction closes.
True
64
T/F:
Under USPAP, confidential information is information the appraiser receives from the client, is not available from any other source and is identified by the client as confidential; or classified as confidential or private by applicable law or regulation.
True
65
T/F:
| An appraiser may only disclose confidential information to the client and persons specifically authorized by the client.
False
66
T/F:
The COMPETENCY RULE requires the appraiser to disclose the lack of knowledge or experience before accepting an assignment.
True
67
T/F:
The RECORD KEEPING RULE states that a workfile must be retained for five years or seven years in the event testimony is given by the appraiser.
False
68
T/F:
| An appraiser is not permitted to use or communicate a misleading or fraudulent report.
True
69
T/F:
An appraiser may complete appraisals performed for litigation with bias because that’s what everyone expects and the court will likely “split the difference.”
False
70
T/F:
| Bias is allowed in an appraisal report as long as it is disclosed in the report.
False
71
T/F:
Payment of a fee to procure appraisal assignments is permitted if disclosed in the certification and any transmittal letter.
True
72
T/F:
| An appraiser must obtain the necessary competency prior to accepting the assignment.
False
73
In an assignment the scope of work is an ____________
| process.
ongoing
74
In order to determine the appropriate scope of work the
| appraiser must ____________ the problem to be solved.
identify
75
An appraiser must not allow client objectives to
| ____________ the assignment results.
bias
76
Appraisers have broad ____________ and significant
____________ in determining the appropriate scope of
work in an assignment.
flexibility … responsibility
77
An appraiser’s report must contain ____________ to
allow intended users to understand the scope of the
work performed.
sufficient information
78
T/F:
Exclusion of a valuation approach that is not applicable in a given assignment is an application of a scope of work decision.
True
79
T/F:
An appraiser who allows assignment conditions to significantly limit the scope of work can affect the credibility of the assignment results.
True
80
T/F:
| Scope of work has no disclosure requirements.
False
81
T/F:
| The credibility of assignment results is measured in the context of the intended use.
True
82
T/F:
| Identifying scope of work requires communication with the client.
True
83
An appraiser is leaving the appraisal firm. What should be done regarding the appraiser’s
workfiles?
A. the appraiser must take possession of the workfiles.
B. the firm must take possession of the workfiles.
C. the appraiser must have custody or make arrangements for access, retrieval, or retention of the workfiles.
D. the workfiles must be maintained in a secure environment by an independent third party.
C. the appraiser must have custody or make arrangements for access, retrieval, or retention of the workfiles. (Correct Answer)
84
When a law or regulation precludes compliance with any part of USPAP, appraisers must:
A. ignore USPAP.
B. ignore the law and adhere to USPAP.
C. be allowed to take exception to the law and public policy.
D. comply with that law or regulation.
D. comply with that law or regulation.
85
The purpose of the JURISDICTIONAL EXCEPTION RULE is to:
A. allow for cooperation with other professional appraisers.
B. preserve the balance of USPAP if compliance with one or more of its parts is precluded by law or regulation.
C. place additional requirements on the appraiser.
D. permit acceptance of assignments in other geographic areas.
* B. preserve the balance of USPAP if compliance with one or more of its parts is precluded by law or regulation. (Correct Answer)
86
An appraiser’s peers are defined as other appraisers who:
A. have a similar level of education.
B. have expertise and competency in a similar type of assignment.
C. hold the same level of state licensure.
D. practice in the same market.
B. have expertise and competency in a similar type of assignment. (Correct Answer)
87
Confidential information under USPAP is information the appraiser:
A. receives from a business broker.
B. receives from a market data source.
C. receives from the client and is identified as confidential but is available from other sources.
D. receives from the client, is identified by the client as confidential, and is not available from other sources.
D. receives from the client, is identified by the client as confidential, and is not available from other sources.
88
In order to accept an assignment when an appraiser initially lacks the knowledge or experience to complete an assignment competently, he or she must:
A. associate with an appraiser qualified to complete the assignment.
B. ask for more time and reduce the fee.
C. refer the appraisal to appraisers qualified to complete the assignment.
D. disclose to the client, prior to accepting the assignment, the lack of knowledge or experience.
* D. disclose to the client, prior to accepting the assignment, the lack of knowledge or experience. (Correct Answer)
89
An appraiser has been asked to complete an appraisal assignment. The fee is to be paid when and if the transaction closes. According to USPAP, may the appraiser accept the assignment under these conditions?
A. Yes, this is a business decision between the appraiser and the client.
B. No, the fee is a contingency arrangement that violates the ETHICS RULE.
C. Yes, as long as the appraiser clearly discloses the basis of such a contingency in the certification and in any letter of transmittal.
D. No, unless the appraiser receives written permission allowing the transfer of the appraisal to other parties.
* B. No, the fee is a contingency arrangement that violates the ETHICS RULE.
(Correct Answer)
90
Identification of the intended use of an appraiser’s opinions and conclusions is:
A. necessary only when doing litigation assignments.
B. not required unless the client wants the intended use to be disclosed.
C. necessary for determining the appropriate scope of work.
D. necessary for all but tax-related assignments.
* C. necessary for determining the appropriate scope of work. (Correct Answer)
91
The amount and type of information researched and the analyses applied in an assignment
defines the:
A. scope of work.
B. industry analysis.
C. appraisal process.
D. assignment conditions.
A. scope of work. (Correct Answer)
92
When is the payment of fees by the appraiser in connection with the procurement of an appraisal assignment allowed?
A. never.
B. only when the payment is in excess of the first fee.
C. always.
D. only when the payment is properly disclosed.
D. only when the payment is properly disclosed. (Correct Answer)
93
The disclosure of confidential information to a third party is unethical unless:
A. instructed by an attorney.
B. authorized by the client.
C. beneficial to the client.
D. needed in another similar assignment.
B. authorized by the client.
94
Exclusion of an approach to value that is not applicable in a given assignment is a:
A. choice of the client.
B. Standards Rule.
C. scope of work decision.
D. jurisdictional exception.
* C. scope of work decision. (Correct Answer)
95
One measure of when the scope of work is acceptable is when it:
A. is agreed to by the client.
B. meets or exceeds the expectations of parties who are regularly intended users for similar assignments.
C. helps the client save taxes.
D. is different from what an appraiser’s peers actions would be in performing the same type assignment.
* B. meets or exceeds the expectations of parties who are regularly intended users for similar assignments. (Correct Answer)
96
The responsibility of the scope of work decision rests with the:
A. client.
B. appraiser.
C. appraiser’s peers.
D. intended users.
*B. appraiser. (Correct Answer)
97
In appraisal practice, advocating the cause or interest of any party or issue is:
A. not permitted.
B. permitted when a contingent fee is not involved.
C. permitted when done by an unlicensed appraiser.
D. permitted when appropriately disclosed.
* A. not permitted. (Correct Answer)
98
T/F:
If the appraiser knows the value of 100% of the equity, the value per share for a minority interest is determined by dividing the value by the number of shares outstanding.
False
99
T/F:
Identification of the intended use of an appraiser’s opinions and conclusions is not necessary in most appraisal assignments.
False
100
T/F:
If the subject is 100% of the equity, an appraiser must investigate the possibility that the value may be higher in liquidation than under an assumption of continued operation.
True
101
T/F:
| In reconciliation of the approaches applied, each approach must be given equal weight.
False
102
T/F:
Exclusion of a valuation approach that is not necessary for credible results in a given assignment is a scope of work decision.
True
103
When appraising business interests, the appraiser must
consider the use of all ___________ appraisal
approaches.
three
104
An appraiser must be aware of, ___________ and
| ___________ recognized methods and techniques.
understand …
| correctly employ
105
In developing a business appraisal, an appraiser must
___________ and ___________ all information
necessary for credible assignment results.
collect … analyze
106
Identification of the ___________ and ___________ of
an appraiser’s opinions and conclusions is necessary for
determining the appropriate scope of work.
intended use …
| intended users
107
An appraiser must, when necessary for credible
assignment results, analyze the effect on value of the
prices, ___________, and ___________ affecting past
sales of similar ownership interests.
terms … conditions
108
T/F:
| The two report options are Appraisal Report and Limited Appraisal Report.
False
109
T/F:
| USPAP does not require that the client’s name be stated in the appraisal report.
True
110
T/F:
| There can be intended users other than the client for a Restricted Appraisal Report.
False
111
T/F:
The disclosure of any significant business enterprise appraisal assistance provided in an appraisal report is not required under USPAP.
False
112
T/F:
Oral reports for business enterprise and intangible asset appraisals must address the substantive matters required in an Appraisal Report.
True
113
T/F:
| An appraiser who signs any part of an appraisal report must sign the certification.
True
114
T/F:
| An appraiser is obligated to identify the intended users of an appraisal report, by name, in the report.
False
115
T/F:
When disclosing extraordinary assumptions and hypothetical conditions an appraiser must also state that their use might have affected the assignment results.
True
116
T/F:
| Each appraisal report requires two signatures; one for the appraisal and a signature on the certification.
False
117
T/F:
| An appraisal report must state the effective date and the date of the report.
True
118
Appraisal review is the act or process of ____________ and ____________ an opinion about the quality of another appraiser’s work.
developing …
| communicating
119
If a reviewer is asked to develop an opinion as to the
quality of another appraiser’s work and to agree or
disagree with the value conclusion, it is both a
____________ and an ____________.
review … appraisal
120
The reviewer must conduct an appraisal review in the
| context of market conditions as of the ____________ of the appraisal under review.
effective date
121
An appraisal review requires the reviewer to prepare a
separate report setting forth the ____________
performed and the results of the appraisal review.
scope of work
122
The subject of a review assignment may be
____________ or ____________ of a report, a workfile, or a combination of these, and may be related to an appraisal or appraisal review assignment.
all … part
123
T/F:
A reviewer performing an appraisal review must not sign the work under review unless he/she intends to accept the responsibility as a cosigner of the work.
True
124
T/F:
| An appraisal review can be a two-stage assignment: an appraisal review and a value opinion by the reviewer.
True
125
T/F:
| A review appraiser is always required to develop an opinion as to the completeness of the material under review.
False
126
T/F:
| An appraisal review is the process of both developing and reporting the supervision of an appraisal.
False
127
T/F:
| A reviewer must develop an opinion regarding the qualifications of the appraiser whose work is under review.
False
128
A review appraiser may use additional information that was not available to the original appraiser as long as the information:
A. discredits the data in the appraisal report under review.
B. supports the data in the appraisal report under review.
C. is not used as the basis to discredit the original appraiser’s value opinion.
D. is not used in a review that includes the reviewer’s own opinion of value.
* C. is not used as the basis to discredit the original appraiser’s value opinion. (Correct
Answer)
129
In developing an appraisal review, the reviewer must identify all of the following except:
A. the purpose of the assignment.
B. the scope of work to be performed.
C. the intended use of the reviewer’s opinions and conclusions.
D. the reviewer’s concurrence of the appraiser’s opinion of value, if not part of the
reviewer’s scope of work.
* D. the reviewer’s concurrence of the appraiser’s opinion of value, if not part of the
reviewer’s scope of work. (Correct Answer)
130
When necessary for credible assignment results, a reviewer must develop an opinion
regarding:
A. the appraiser’s qualifications to complete the assignment.
B. the completeness of the work under review, given the reviewer’s scope of work.
C. the appraiser’s knowledge of USPAP.
D. the ethical and moral character of the appraiser.
* B. the completeness of the work under review, given the reviewer’s scope of work.
(Correct Answer)
131
In the development of a business appraisal, the appraiser must:
A. investigate the existence of transactions of similar businesses.
B. visit the company’s headquarters.
C. not commit a substantial error that significantly affects the appraisal.
D. use the three approaches to value.
* C. not commit a substantial error that significantly affects the appraisal. (Correct
Answer)
132
To the extent possible and appropriate, an oral appraisal report for an interest in a business
enterprise or intangible asset must address the substantive matters that apply to a(n):
A. Appraisal Review Report.
B. Appraisal Report.
C. Mass Appraisal Report.
D. Restricted Appraisal Report.
* B. Appraisal Report. (Correct Answer)
133
According to USPAP, any appraiser who signs any part of an appraisal report is required to:
A. sign the letter of transmittal.
B. be the primary appraiser on the assignment.
C. sign the certification.
D. read the report.
* C. sign the certification. (Correct Answer)
134
All appraisal reports must contain:
A. a signed letter of transmittal.
B. sufficient information to enable intended users to understand the report.
C. adequate detail to allow the reader to understand the appraisal process.
D. separate exhibits.
* B. sufficient information to enable intended users to understand the report. (Correct
Answer)
135
When reporting the results of an appraisal, dates that must be included are;
A. effective date and report date.
B. report date and assignment date.
C. analysis completion date and report date.
D. effective date and contract date.
* A. effective date and report date. (Correct Answer)
136
The subject of an appraisal review assignment may be:
A. any work completed as part of an appraisal or appraisal review assignment.
B. any work completed by a licensed or certified appraiser.
C. any work that is part of appraisal practice.
D. only work done as part of an appraisal assignment.
* A. any work completed as part of an appraisal or appraisal review assignment.
(Correct Answer)
137
An extraordinary assumption may be used in an assignment only if:
A. mandated by law or regulation.
B. approved by the client.
C. accompanied by a limiting condition.
D. it is required to develop credible results.
* D. it is required to develop credible results. (Correct Answer)
138
Which of the following is not required by USPAP to be in an appraisal report?
A. type and definition of value.
B. effective date of appraisal.
C. client’s specific name.
D. name or type of other intended users.
* C. client’s specific name. (Correct Answer)
139
Compared to a value opinion expressed in an Appraisal Report, a value opinion expressed in a Restricted Appraisal Report is:
A. less reliable.
B. more reliable.
C. less credible.
D. equally credible.
* D. equally credible. (Correct Answer)
140
Which of the following best describes bias in appraisal practice?
A. permitted in market analysis.
B. allowed, as long as it is disclosed in the report.
C. not allowed.
D. allowed if disclosed prior to accepting the assignment.
* C. not allowed. (Correct Answer)
141
The client is the only intended user for a (an):
A. Restricted Appraisal Report.
B. Review Appraisal Report.
C. Appraisal Reports.
D. Oral Appraisal Report.
* A. Restricted Appraisal Report. (Correct Answer)
142
T/F:
| Levels of trade are a market reference in real property appraisals.
False
143
T/F:
Mass appraisal is the process of valuing a universe of properties as of a given date using standard methodology, employing common data, and allowing for statistical testing.
True
144
T/F:
STANDARD 6 applies to all mass appraisals of real or personal property regardless of the purpose or use of such appraisals.
True
145
T/F:
An appraiser must recognize that there are distinct levels of trade in personal property, and each may have different comparable data.
True
146
T/F:
An opinion regarding the highest and best use of the subject property is often required in the appraisal of real and personal property.
True
147
The PREAMBLE of USPAP states that the Standards are:
A. only for appraisers.
B. for appraisers and users of appraisal services.
C. limited to state certified or licensed appraisers.
D. only for users of appraisal services.
* B. for appraisers and users of appraisal services. (Correct Answer)
148
For real property appraisers, USPAP is enforced by:
A. The Appraisal Foundation.
B. the Appraisal Standards Board.
C. the Appraisal Subcommittee, through Congress.
D. State Regulatory Agencies.
* D. State Regulatory Agencies. (Correct Answer)
149
USPAP is developed, interpreted, and amended by the:
A. Appraisal Standards Board.
B. Appraisal Subcommittee.
C. Appraiser Qualifications Board.
D. State Regulatory Agencies.
* A. Appraisal Standards Board. (Correct Answer
150
USPAP Advisory Opinions are issued to:
A. revise existing standards.
B. establish new standards.
C. illustrate the applicability of appraisal standards.
D. interpret existing standards.
* C. illustrate the applicability of appraisal standards. (Correct Answer)
151
Appraisal practice includes only:
A. valuation services performed by an individual acting as an appraiser.
B. appraisal and appraisal review.
C. fair market value appraisals.
D. work completed by licensed or certified appraisers.
* A. valuation services performed by an individual acting as an appraiser. (Correct Answer)
152
Which of the following best describes the Statements on Appraisal Standards?
A. they offer advice, but do not carry the same weight as the Standards Rules.
B. they have the full weight of a Standards Rule and can be adopted by the ASB only after exposure and comment.
C. they do not establish new standards or interpret existing standards, but are issued to illustrate the applicability of appraisal standards in specific situations.
D. they are an integral part of the Uniform Standards and are extensions of the Standards Rules.
* B. they have the full weight of a Standards Rule and can be adopted by the ASB only
after exposure and comment. (Correct Answer)
153
If for the purpose of analysis an appraiser assumes a condition to be true that as of the
effective date of value is known to be false, this is an example of:
A. an extraordinary assumption.
B. an assumption.
C. a limiting condition.
D. a hypothetical condition.
* D. a hypothetical condition. (Correct Answer)
154
The purpose of the JURISDICTIONAL EXCEPTION RULE is to:
A. illustrate the applicability of appraisal standards.
B. preserve the balance of USPAP when one or more of its parts is precluded by law or regulation.
C. allow for cooperation with other professional appraisers.
D. place additional requirements on the appraiser.
* B. preserve the balance of USPAP when one or more of its parts is precluded by law or
regulation. (Correct Answer)
155
Confidential information under USPAP is information the appraiser:
A. receives from the client, is identified by the client as confidential, and is not available from other sources.
B. receives from another client.
C. receives from the client and is identified as confidential but is available from other sources.
D. receives from a data subscription service.
* A. receives from the client, is identified by the client as confidential, and is not
available from other sources. (Correct Answer)
156
The type and extent of research and analysis in an assignment defines the:
A. market analysis.
B. assignment conditions.
C. scope of work.
D. analysis of the subject asset.
* C. scope of work. (Correct Answer)
157
The scope of work is acceptable only when it:
A. is agreed to by the client.
B. meets client specifications.
C. is different from what an appraiser’s peers actions would be in performing the same type assignment.
D. meets or exceeds the expectations of parties who are regularly intended users for similar assignments.
* D. meets or exceeds the expectations of parties who are regularly intended users for
similar assignments. (Correct Answer)
158
When necessary for credible assignment results, a review appraiser must develop an opinion
regarding:
A. the appraiser’s knowledge of USPAP.
B. the completeness of the work under review, given the reviewer’s scope of work.
C. the appraiser’s qualifications to complete the assignment.
D. the ethical character of the appraiser.
* B. the completeness of the work under review, given the reviewer’s scope of work.
(Correct Answer)
159
The Standards Rules obligating appraisers to be aware of, understand, and correctly employ recognized methods and techniques necessary to produce credible assignment results are:
A. not applicable to real property.
B. not applicable to personal property.
C. applicable only to real property.
D. applicable to all of the appraisal disciplines.
* D. applicable to all of the appraisal disciplines. (Correct Answer)
160
What special requirements, if any, are appropriate when appraising the market value of a
property subject to favorable financing?
A. Ignore the favorable financing.
B. Appraise the property under typical financing only.
C. Include no special requirement as long as the financing is available to the typical purchaser.
D. Identify the special financing terms and develop an opinion of their effect on value.
* D. Identify the special financing terms and develop an opinion of their effect on value.
(Correct Answer)
161
Compared to a value opinion expressed in a business enterprise or intangible asset Appraisal Report, a value opinion expressed in a Restricted Appraisal Report is:
A. equally credible.
B. more reliable.
C. less reliable.
D. less credible.
* A. equally credible. (Correct Answer)
162
Which of the following reports require a signed certification?
A. only real property and appraisal review reports.
B. only real property appraisal reports.
C. all reports except mass appraisal.
D. all written reports covered in USPAP.
* D. all written reports covered in USPAP. (Correct Answer)
163
Levels of trade is a market reference in:
A. business appraisal.
B. personal property appraisal.
C. real property appraisal.
D. mass appraisal.
* B. personal property appraisal. (Correct Answer)
164
"Standard” rather than “type” of value is used in:
A. business appraisal.
B. real property appraisal.
C. personal property appraisal.
D. mass appraisal.
* A. business appraisal. (Correct Answer)
165
The mass appraisal standard applies to the:
A. development and reporting of mass appraisals of real or personal property.
B. development and reporting of automated valuation models only.
C. development and reporting of residential real estate only.
D. development and reporting of mass appraisals for ad valorem tax purposes only.
* A. development and reporting of mass appraisals of real or personal property.
(Correct Answer)
166
When appraising personal property, the appraiser must analyze prior sales of the subject over
what time period?
A. one year.
B. three years.
C. five years.
D. a reasonable and applicable time.
* D. a reasonable and applicable time. (Correct Answer)
167
If an appraiser is asked to appraise a property on which there is a current agreement of sale, the agreement should be:
A. disregarded because it is not a sale.
B. used as a comparable sale.
C. used as a guideline to select comparable sales.
D. analyzed in the appraisal.
* D. analyzed in the appraisal. (Correct Answer)
