Chapter 3 Definitions

Question 1

USPAP definitions have __________ meanings in the context of their USPAP document use

Answer 1

different

Question 2

a preference or precludes an appraiser’s impartiality, independence or objectivity in an assignment.

Answer 2

bias

Question 3

A preference or inclination that precludes an appraiser's impartiality, independence, or objectivity is:
Bias
Assumption
Appraisal practice
Market value

Answer 3

Bias

Question 4

An appraiser is permitted to be biased when performing an appraisal, as long as the bias is properly disclosed.
True
False

Answer 4

False

Question 5

something that is taken to be true.

Answer 5

assumption

Question 6

an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions and conclusions.

Answer 6

Extraordianry Assumption

Question 7

A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis.

Answer 7

Hypothetical Condition

Question 8

If an appraiser assumes a condition to be true that does not exist for the purposes of analysis, this is an example of:

A hypothetical condition
A limiting condition
An extraordinary assumption
An assumption

Answer 8

hypothetical condition

Question 9

If an appraiser assumes a condition to be true, and evidence supports that belief, although that fact is not certain, this is an example of:
A hypothetical condition
An extraordinary assumption
An assignment condition
A limiting condition

Answer 9

extraordinary assumption

Question 10

an opinion, based on supporting market data, of the length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal.

Answer 10

exposure time

Question 11

the actual or estimated amount required to create, reproduce, replace or obtain a property.

Answer 11

cost

Question 12

the amount asked, offered, or paid for a property.

Answer 12

price

Question 13

the monetary relationship between properties and those who buy, sell or use those properties, expressed as an opinion of the worth of a property at a given time.

Answer 13

value

Question 14

An appraiser receives a copy of a signed sales agreement for an office building, which specifies the agreed-upon amount of $950,000. What does this figure represent?
Cost
Price
Value

Answer 14

Price

Question 15

“The monetary relationship between properties and those who buy, sell or use those properties” is the definition of:
Value
None of these
Price
Cost

Answer 15

Value

Question 16

By using a published cost manual, an appraiser determines that the construction cost of a 2,500 square foot dwelling is $400,000. This figure represents the dwelling’s:
Value
Price
Cost

Answer 16

Cost

Question 17

one who is expected to perform valuation services competently and in a manner that is independent, impartial, and objective.

Answer 17

Appraiser

Question 18

the party or parties (i.e., individual, group, or entity) who engage an appraiser by employment or contract in a specific assignment, whether directly or through an agent.

Answer 18

Client

Question 19

Assumptions, extraordinary assumptions, hypothetical conditions, laws and regulations, jurisdictional exceptions, and other conditions that affect the scope of work.

Answer 19

Assignment Conditions

Question 20

A valuation service that is provided by an appraiser as a consequence of an agreement with a client.

Answer 20

Assignment

Question 21

An appraiser’s opinions or conclusions, not limited to value, that were developed when performing an appraisal assignment, an appraisal review assignment, or a valuation service other than an appraisal or appraisal review.

Answer 21

Assignment results

Question 22

According to USPAP, the party or parties who engage an appraiser in a specific assignment defines the:
Party who pays the fee
Other intended users
Client
Appraiser's peers

Answer 22

Client

Question 23

It is permissible for an appraiser to be engaged in an assignment by an agent, who is acting on behalf of the client.
False
True

Answer 23

True

Question 24

An appraiser performs an appraisal assignment and develops an opinion of value. This value opinion is
a fact
an estimate of fact
an assignment result

Answer 24

An assignment result

Question 25

the use(s) of an appraiser’s reported appraisal or appraisal review assignment results, as identified by the appraiser based on communication with the client at the time of the assignment.

Answer 25

Intended Use

Question 26

the client and any other party as identified, by name or type, as users of the appraisal or appraisal review report by the appraiser, based on communication with the client at the time of the assignment.

Answer 26

Intended user

Question 27

An intended user is: Anyone who uses the appraisal report A party who is identified by the appraiser based on communication with the client at the time of the assignment Anyone who receives the appraisal report from the client Only the party who pays for the appraisal report

Answer 27

A party who is identified by the appraiser based on communication with the client at the time of the assignment

Question 28

``` Who is responsible for making the identification of the intended use in an assignment? The client The Appraisal Standards Board The appraiser The intended users themselves ```

Answer 28

The appraiser

Question 29

any communication, written or oral, of an appraisal or appraisal review that is transmitted to the client or a party authorized by the client upon completion of an assignment.

Answer 29

report

Question 30

personalized evidence indicating authentication of the work performed by the appraiser and the acceptance of the responsibility for content, analyses, and the conclusions in the report.

Answer 30

Signature

Question 31

data, information, and documentation necessary to support the appraiser’s opinions and conclusions and to show compliance with USPAP.

Answer 31

Workfile

Question 32

a service pertaining to an aspect of property value, regardless of the type of service and whether it is performed by appraisers or by others.

Answer 32

Valutation Service

Question 33

valuation services performed by an individual acting as an appraiser, including but not limited to appraisal and appraisal review.

Answer 33

Appraisal Practice

Question 34

the act or process of developing an opinion of value; an opinion of value; (adjective) of or pertaining to appraising and related functions such as appraisal practice or appraisal services.

Answer 34

Appraisal

Question 35

the act or process of developing and communicating an opinion about the quality of another appraiser’s work (i.e., a report, part of a report, a workfile, or some combination of these) that was performed as part of an appraisal, appraisal review, or appraisal consulting assignment; (adjective) of or pertaining to an opinion about the quality of another appraiser’s work that was performed as part of an appraisal or appraisal review assignment.

Answer 35

Appraisal Review

Question 36

A real estate broker completes a Comparative Market Analysis (CMA) on a property that she wants to list for sale. What would this be considered? An appraisal A valuation service Not an appraisal, but still part of appraisal practice A USPAP service

Answer 36

A valuation service

Question 37

Which is the broader category of services? Appraisal Practice Valuation Services

Answer 37

Valuation services

Question 38

Appraisal practice includes only: Market value appraisals Work completed by licensed and certified appraisers Appraisal and appraisal review Valuation services provided by an individual acting as an appraiser

Answer 38

Valuation services provided by an individual acting as an appraiser

Question 39

the type and extent of research and analyses in an appraisal or appraisal review assignment.

Answer 39

Scope of Work

Question 40

``` "The type and extent of research and analyses in an appraisal or appraisal review assignment” is the definition of ___________. Signature Report Intended use Scope of work ```

Answer 40

Scope of Work

Question 41

``` In USPAP, each Standard is composed of: Standards Rules Statements on Appraisal Standards Practical advice Voluntary guidance ```

Answer 41

Standards Rules