Definitions

Question 1

The Appraisal Standards Board may remove a definition from USPAP. What was the reason the ASB removed the term “misleading” from a prior edition of USPAP?

Answer 1

The USPAP definition was not significantly different than the definition found in traditional dictionaries.

Question 2

Why does USPAP define only certain terms?

Answer 2

to address terms that differ in meaning from there common usage

Question 3

An appraiser is performing a valuation assignment for a federal financial institution. What definition of “market value” should an appraiser use in this assignment?

Answer 3

the definition required by FIRREA

Question 4

A property owner has asked an appraiser to work on a tax appeal assignment, but on the condition the tax value can be lowered. What must an appraiser condsider in this situation?

Answer 4

It apprears the client wants the appraiser to act as an advocate.

Question 5

A preference that precludes an appraiser’s impartiality in an assignment is best defined as

Answer 5

bias.

Question 6

The definition of advocacy is

Answer 6

not defined in the DEFINITIONS section of USPAP

Question 7

An appraiser w/ a financial interest in a property must not appraise the property if possessing that interest compromises the appraiser’s

Answer 7

impartiality.

Question 8

An assignment involves a proposed renovation. What term best applies to the assignment condition if the appraiser’s conclusion is based on a current value as if the renovation is already completed?

Answer 8

hypothetical condition

Question 9

An appraisal is based on a “what if” scenario. What term does USPAP use to identify an assignment condition that is contrary to what exists?

Answer 9

hypothetical condition

Question 10

Which term best applies to conditions that are generally supposed in most appraisal assignments, such as the subject property having a clear title?

Answer 10

assumption

Question 11

An appraiser must br careful not to mislead when using what term alongside “price”?

Answer 11

Estimate

Question 12

What USPAP term is identified as opinion and never as fact?

Answer 12

value

Question 13

The monetary relationship between properties and those who buy, sell, or use those properties, best defines what term?

Answer 13

Value

Question 14

When an appraiser develops the replacement construction cost of improvements for a property, what is the appraiser essentially providing?

Answer 14

an estimated dollar amount to replace the improvements

Question 15

Confidential info applies to info

Answer 15

Classified as confidential by applicable law or regulation.

or identified by the client as confidential when providing it to an appraiser and that is not available from any other source

Question 16

A valuation service that is provided by an appraiser as a consequence of an agreement w/ a client defines what USPAP term?

Answer 16

assignment

Module 3: Assignment-Related Definitions

Question 17

What USPAP term best identifies an appraiser’s opinions or conclusions, not limited to value, that were developed while performing an appraisal assignment or appraisal review assignment?

Answer 17

assignment results

Physical characteristics are not assignment results.

Module 3: Assignment-Related Definitions

Question 18

Who determines the intended use of an appraisal involving litigation of a federal highway easement?

Answer 18

the appraiser

Module 3: Intended Use and Intended User

Question 19

Intended users in an Appraisal Report

Answer 19

must be identified by name or type.

Question 20

Based on the USPAP definition of “client”, which of the following is true?

Answer 20

All of these answers are correct
* The client is the party who engages an appraiser in a specific assignment.
* The client may engage and comm w/ the appraiser directly or through an agent.
* The client may be an individual, group, or entity.

Question 21

A property owner engages an appraiser to assist in establishing an asking price of his land. The property owner in this assignment

Answer 21

is the client and an intended user.

Question 22

What type of personalized evidence indicates authentication of the work performed by an appraiser?

Answer 22

a signature

Module 3: Reports and Workfiles.

Question 23

What type of valuation services requires a workfile under USPAP?

Answer 23

appraisal and appraisal review assignments

Module 3: Reports and Workfiles.

Question 24

Why doesn’t the USPAP definition for “signature” identify the specifics of what kind of mark or image qualifies for appropriate use?

Answer 24

Because tech is constantly changing

Question 25

In addition to a paper doc, a report's written comm may include

Answer 25

All of these answers. * faxes. * e-mail messages. * text messages.

Question 26

What do accountants, real estate agents, and automobile salespersons have in common w/ real property appraisers?

Answer 26

All may provide valuation services.

Question 27

The type and extent of research and analyses that an appraiser undertakes in an assignment is best identified as

Answer 27

scope of work.

Question 28

A wide-ranging world of value-related services best describes

Answer 28

valuation service.

Question 29

An accountant determines the book value on an asset; a broker establishes a listing price for a property; an appraiser provides an opinion of value. These are all examples of

Answer 29

Valuation service.

Question 30

An appraisal review assignment

Answer 30

may be all or part of a report, workfile, or a combo of these.

Question 31

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

Answer 31

Appraisal

Question 32

the act or process of developing an opinion about the quality of another appraiser’s work, that was performed as part of an appraisal or appraisal review assignment

Answer 32

appraisal review

Question 33

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

Answer 33

Assignment conditions

Question 34

an entity pursuing an economic activity.

Answer 34

Business enterprise

Question 35

the interests, benefits, and rights inherent in the ownership of a business enterprise or a part thereof in any form. ## Footnote (including, but not necessarily limited to, capital stock, partnership interests, cooperatives, sole proprietorships, options, and warrants)

Answer 35

Business equity

Question 36

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

Answer 36

Cost

Question 37

Worthy of belief

Answer 37

Credible ## Footnote Credible assignment results require support, by relevant evidence and logic, to the degree necessary for the intended use.

Question 38

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 38

Exposure time

Question 39

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 or conclusions.

Answer 39

Extraordinary assumption

Question 40

nonphysical assets, including but not limited to franchises, trademarks, patents, copyrights, goodwill, equities, securities, and contracts as distinguished from physical assets such as facilities and equipment.

Answer 40

Intangible Property (Intangible Assets)

Question 41

the use(s) of an appraiser’s reported appraisal or appraisal review assignment results, as 125 identified by the appraiser based on communication with the client at the time of the assignment.

Answer 41

Intended use

Question 42

an assignment condition established by applicable law or regulation, which precludes an appraiser from complying with a part of USPAP.

Answer 42

Jurisdictional exception

Question 43

a type of value, stated as an opinion, that presumes the transfer of a property (i.e., a right of ownership or a bundle of such rights), as of a certain date, under specific conditions set forth in the value definition that is identified by the appraiser as applicable in an appraisal.

Answer 43

Market value

Question 44

the process of valuing a universe of properties as of a given date using standard methodology, employing common data, and allowing for statistical testing.

Answer 44

Mass appraisal

Question 45

a mathematical expression of how supply and demand factors interact in a market.

Answer 45

Mass Appraisal Model

Question 46

any tangible or intangible article that is subject to ownership and not classified as real property, including identifiable tangible objects that are considered by the general public as being “personal,” such as furnishings, artwork, antiques, gems and jewelry, collectibles, machinery and equipment; and intangible property that is created and stored electronically such as plans for installation art, choreography, emails, or designs for digital tokens.

Answer 46

Personal property

Question 47

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

Answer 47

Price ## Footnote Once stated, price is a fact, whether it is publicly disclosed or retained in private. Because of the financial capabilities, motivations, or special interests of a given buyer or seller, the price paid for a property may or may not have any relation to the value that might be ascribed to that property by others.

Question 48

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 48

Report

Question 49

documentation necessary to support an appraiser’s analyses, opinions, and conclusions.

Answer 49

Workfile