USPAP REVIEW QUETSTIONS Flashcards
(147 cards)
1
Q
Which of the following statements BEST describes Advisory Opinions?
They are not part of USPAP but illustrate applicability and provide guidance.
They provide interpretation of USPAP requirements and are intended to be enforceable.
They establish supplemental standards that build upon STANDARDS 1 through 10.
They are part of USPAP, and they are the ASB’s way of addressing changes in the appraisal marketplace.
A
They are not part of USPAP but illustrate applicability and provide guidance.
2
Q
An appraisal that takes into consideration the full effect of known environmental contamination would be considered:
“As-is”
Extraordinary assumption
Hypothetical condition
Subject to remediation
A
“As-Is”
3
Q
True/False: The competency required to appraise subsidized housing extends beyond typical residential appraisal competency.
A
True
4
Q
In an appraisal report, the use of terms that reflect a scale such as “good” or “average”:
Is a violation of USPAP
Is illegally discriminatory, but does not violate USPAP
Involves the use of an extraordinary assumption
Should include explanation that provides context
A
Should include explanation that provides context
5
Q
An appraiser provides raw AVM output to a client. This is:
Not an appraisal; however, a workfile is required by USPAP
Not an appraisal, and no workfile is required
A violation of the ETHICS RULE
An appraisal under STANDARDS 1 and 2
A
Not an appraisal, and no workfile is required
6
Q
An appraiser agrees to provide a market value appraisal for a client. Which statement is true about this situation?
It is essential that the appraiser identify the source of the definition of value to be used.
All market value definitions are essentially the same; hence they are all interchangeable.
There is only one definition of market value so it is not important to identify the definition of value to be used.
Market value is the only type of value that appraisers provide, so defining the value is unnecessary.
A
It is essential that the appraiser identify the source of the definition of value to be used.
7
Q
Regulations and guidelines that apply to an appraisal for a federally-regulated lending transaction are:
Assignment conditions
Hypothetical conditions
Limiting conditions
Jurisdictional exceptions
A
Assignment conditions
8
Q
If a borrower attempts to engage an appraiser to complete an appraisal for a federally-regulated lending transaction, the appraiser should disclose:
That the lender must engage the appraiser, and that the appraiser cannot later “readdress” the report
That the appraiser is too busy to perform an assignment for a borrower as the client
That the lender must directly engage the appraiser, and that the report can only be readdressed with express written permission from the lender
That the borrower is permitted to order the appraisal, and that the appraiser may later “readdress” the report, if needed
A
That the lender must engage the appraiser, and that the appraiser cannot later “readdress” the report
9
Q
Developing an opinion of value of a property as of a specified future date is:
A prospective appraisal
The most common type of appraisal
A retrospective appraisal
Not permissible under USPAP
A
A prospective appraisal
10
Q
What type of appraisal would be indicated by the phrase, “On September 10, 2012, the market value of the subject property was $200,000”?
Retrospective
Concurrent
Prospective
None of these
A
Retrospective
11
Q
What does the effective date of an appraisal establish?
The date the certification statement was signed
The date upon which the report was prepared
The context of the value opinion
The approximate date the appraiser can expect payment
A
The context of the value opinion
12
Q
According to AO-33, the results of discounted cash flow (DCF) analysis should:
A
Be tested and checked for errors and reasonableness
13
Q
Which of these would be considered an example of a jurisdictional exception in an appraisal assignment?
A client requesting a specific definition of value
An attorney asking an appraiser not to analyze the prior sales history of the subject property
A probate court paying appraisers based on the value of the subject property
State regulations requiring appraisers to keep workfiles for six years
A
A probate court paying appraisers based on the value of the subject property
14
Q
When does a jurisdictional exception occur in an assignment?
It is automatic when a law precludes compliance with a part of USPAP
The state enforcement agency must approve of the exception to USPAP compliance
The client must invoke the Rule
The appraiser must invoke the Rule
A
It is automatic when a law precludes compliance with USPAP
15
Q
A state passes a law requiring appraisers to keep their workfiles for 10 years after preparation. Is this a jurisdictional exception under USPAP?
No
USPAP does not specify
Yes
A
No
16
Q
Is it permissible to use instructions from an attorney as a basis for a jurisdictional exception?
Yes
USPAP does not specify
No
A
No
17
Q
If USPAP compliance is mandated by federal law, no state or local law can create a jurisdictional exception.
False
True
A
True
18
Q
What is the Jurisdictional Rule
A
If any applicable law or regulation precludes (prevent from happening) compliance with any part of USPAP, only that part of USPAP becomes void for that assignment.
19
Q
What is the purpose of the JURISDICTIONAL EXCEPTION RULE?
To provide state appraisal regulatory agencies additional enforcement powers
To allow USPAP to preempt existing laws and regulations
To provide a saving or severability clause to preserve the balance of USPAP
A
To provide a saving or severability clause to preserve the balance of USPAP
20
Q
Which entity writes, amends, and interprets USPAP?
A
The ASB
21
Q
An assignment condition established by applicable law or regulation, which precludes an appraiser from complying with a part of USPAP.
A
Jurisdictional Exception
22
Q
The use of the JURISDICTIONAL EXCEPTION RULE in an assignment is a matter of choice by an appraiser.
True
False
A
False
23
Q
If an assignment involves a jurisdictional exception, what must an appraiser do?
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
Include a copy of the applicable law or regulation as an addendum to the appraisal, appraisal review, or appraisal consulting report
Nothing; the law automatically supersedes USPAP and eliminates any need for disclosure
A
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
24
Q
What’s the difference between an extraordinary assumption and hypothetical condition
A
An extraordinary assumption is an assumption which if found to be false could alter the resulting opinion or conclusion. A hypothetical condition is an assumption made contrary to fact, but which is assumed for the purpose of discussion, analysis, or formulation of opinions.
25
An unacceptable assignment condition would be a condition that:
Limits report content, resulting in a misleading report
Precludes an appraiser's impartiality
Limits the scope of work to the extent that the value opinion is not credible
All of these
All of these
26
Are FAQ's and Advisory Opinions part of USPAP?
No
27
When analyzing the subject property’s sales history in a real property appraisal assignment, an appraiser is required by USPAP to analyze ______________.
All sales of the subject property that occurred within three years prior to the effective date of the appraisal
28
```
Who is responsible for issuing credentials to individual appraisers?
State appraisal regulatory agencies
Appraisal Practices Board (APB)
Appraiser Qualifications Board (AQB)
Appraisal Subcommittee (ASC)
```
State appraisal regulatory agencies
29
Which is NOT a responsibility of the Appraisal Subcommittee (ASC)?
- Overseeing each state’s appraiser licensing and certification program
- Maintaining a National Registry of licensed and certified appraisers
- Monitoring the practices, procedures, and activities of -The Appraisal Foundation
- Writing, interpreting, and amending USPAP
Writing, interpreting, and amending USPAP
30
```
Why are USPAP Advisory Opinions issued?
To offer advice
To interpret existing standards
To revise existing standards
To establish new appraisal standards
```
To offer advice
31
USPAP is enforced by:
State appraiser licensing/certification agencies
The Federal Financial Institutions Examination Council (FFIEC)
Appraisal Standards Board (ASB)
Appraisal Subcommittee (ASC)
State appraiser licensing/certification agencies
32
What is the stated purpose of USPAP?
Establish a federal appraisal enforcement agency
Establish requirements that licensed and certified appraisers must follow
Promote and maintain a high level of public trust in appraisal practice
Create requirements so stringent that no appraiser can possibly comply with them
Promote and maintain a high level of public trust in appraisal practice
33
```
When obligated by law or regulation, an appraiser _______ comply with USPAP.
Need not
Must
May choose to
Should
```
Must
34
To which property types does USPAP apply?
Intangible property only
Tangible property only
None of these answers
Both tangible and intangible property
Both tangible and intangible property
35
The PREAMBLE states that USPAP intended to benefit:
Users of appraisal services only
Appraisers only
Appraisers and users of appraisal services
Borrowers in mortgage-lending appraisal assignments
Appraisers and users of appraisal services
36
The requirement for USPAP compliance in an appraisal assignment could be the result of:
Agreement with the client
Any of these answers
Voluntary choice by the appraiser
Law or regulation
Any of these answers
37
An appraiser has the professional responsibility to identify the capacity in which he or she is performing.
True
False
True
38
A valuation service that is premised upon advocacy:
- Must be performed under the SCOPE OF WORK RULE
- Is an appraisal review assignment under STANDARDS 3 and 4
- It cannot be performed by an individual acting as an appraiser
- Can be performed by an individual acting as an appraiser with appropriate disclosure
It cannot be performed by an individual acting as an appraiser
39
When performing valuation services outside of appraisal practice, an individual must be careful not to __________ the client and other intended users about his or her role.
Communicate with
Identify
Mislead
Mislead
40
USPAP states that in a situation when an individual is not required by law, regulation, or agreement to comply with USPAP:
- Compliance does not matter because clients do not understand USPAP
- The individual should comply only if the service involves real property
- The individual should still comply when he or she is acting as an appraiser
- The Appraisal Foundation can still force compliance
The individual should still comply when he or she is acting as an appraiser
41
```
A preference or inclination that precludes an appraiser's impartiality, independence, or objectivity is:
Bias
Assumption
Appraisal practice
Market value
```
Bias
42
An appraiser is permitted to be biased when performing an appraisal, as long as the bias is properly disclosed.
True
False
False
43
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
Hypothetical Condition
44
```
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
```
Extraordinary Assumption
45
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
Price
46
```
“The monetary relationship between properties and those who buy, sell or use those properties” is the definition of:
Value
None of these
Price
Cost
```
Value
47
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
Cost
48
```
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
```
Client
49
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.
Client
50
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.
Intended User
51
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
A party who is identified by the appraiser based on communication with the client at the time of the assignment
52
```
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
```
The Appraiser
53
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
Valuation Service
54
Which is the broader category of services?
Appraisal Practice
Valuation Services
Valuation services
55
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
Valuation services provided by an individual acting as an appraiser
56
```
"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
```
Scope of Work
57
```
In USPAP, each Standard is composed of:
Standards Rules
Statements on Appraisal Standards
Practical advice
Voluntary guidance
```
Standards Rules
58
```
The ethical obligations of USPAP apply to:
Appraisal clients
All of the answers listed
Individual appraisers
Appraisal companies
```
Individual Appraisers
59
In appraisal practice, advocating the cause or interest of any party or issue is:
Permitted when done by an unlicensed appraiser
Not permitted
Permitted when appropriately disclosed
Permitted when a contingent fee is not involved
Not Permitted
60
Bias is permitted in an appraisal as long as the bias is clearly disclosed in the report.
True
False
False
61
An appraiser must disclose any service he or she provided regarding the subject property for a period of _________ prior to agreeing to perform the assignment.
Three years
USPAP does not specify a prior time period
One year
Ten years
Three Years
62
In a real property appraisal assignment prepared for a mortgage lender, an appraiser is permitted by USPAP to base his compensation for an appraisal assignment on:
- Whether or not the loan transaction closes
- The amount of the value opinion
- Reconciling the value conclusion to the high end of the indicated range
- Whether or not the report is transmitted to the client by the due date
Whether or not the report is transmitted to the client by the due date
63
An appraiser has been asked to complete an appraisal assignment. The fee is to be paid only if the loan closes. According to USPAP, may the appraiser accept the assignment under these conditions?
No, unless the appraiser receives written permission allowing the transfer of the appraisal to other parties.
Yes, as long as the appraiser clearly discloses the basis of such a contingency in the certification and in any letter of transmittal.
Yes, this is a business decision between the appraiser and the client.
No, the fee arrangement is an unethical contingency arrangement and violates the ETHICS RULE.
No, the fee arrangement is an unethical contingency arrangement and violates the ETHICS RULE.
64
The Confidentiality section of the ETHICS RULE prohibits an appraiser from disclosing confidential information or _________ to unauthorized parties.
Non-confidential information
The appraiser’s personal financial information
Assignment results
Physical characteristics
Assignment Results
65
An appraiser concludes that a subject property has functional inadequacies. This conclusion is:
A conclusion unrelated to value
A physical characteristic and therefore not confidential
An assignment result and must be treated as confidential
An assignment result which may be disclosed to anyone without permission
An assignment result and must be treated as confidential
66
```
In most cases, an appraiser may share __________ from an appraisal assignment with other appraisers without obtaining the client’s consent.
Physical characteristics
All of these
Confidential information
Assignment results
```
Physical Characteristics
67
An appraiser prepared an appraisal report in April 2019. He testified in court regarding the value of the property in January 2020. The decision was rendered in February 2020 and was appealed in April 2020. The appellate court heard the case in January 2021 and remanded the case for reconsideration by the lower court. Final disposition of the case occurred in September 2021. At a minimum, how long must the appraiser retain his workfile?
September 2026
April 2024
September 2023
February 2022
April 2024
68
Is an appraiser permitted by USPAP to create a workfile after transmitting the report to the client?
No
USPAP does not specify
Yes
No
69
An appraiser completes an appraisal and transmits the report to the client. The report copy retained in the appraiser’s workfile does not have a signature affixed to it. Is this permissible under USPAP?
Yes, as long as the report that was sent to the client was signed
USPAP does not address this issue
No, a true copy must include a signature
Yes, because there is no USPAP requirement for an appraisal report to contain a signature
No, a true copy must include a signature
70
Which statement best describes the word “competency” as it relates to appraisal practice?
Clients are required to be competent.
It is an ideal, virtually impossible to achieve.
Lack of competency is expected by clients.
It is fundamental to the definition of “appraiser.”
It is fundamental to the definition of “appraiser.”
71
In order to perform an assignment for which an appraiser initially lacks the knowledge and experience to complete competently, the appraiser must:
Refer the appraisal to an appraiser qualified to complete the assignment
Associate with an appraiser qualified to complete the assignment
Ask for more time and reduce the fee
Disclose to the client, prior to agreeing to perform the assignment, the lack of knowledge or experience
Disclose to the client, prior to agreeing to perform the assignment, the lack of knowledge or experience
72
Which of these is NOT one of the steps required by USPAP when an appraiser wishes to perform an assignment for which he or she initially lacks the knowledge and experience?
Disclose the lack of knowledge and/or experience to the client
Take steps necessary to obtain the necessary knowledge and experience
Use a hypothetical condition to complete the assignment as though the appraiser already had the knowledge and experience
Disclose, in the report, the lack of knowledge and/or experience and the steps taken to complete the assignment competently
Use a hypothetical condition to complete the assignment as though the appraiser already had the knowledge and experience
73
Three appraisers work together on an appraisal assignment. What would NOT be an appropriate workfile arrangement under USPAP?
The workfile is posted on the Internet, so that anyone who wants to see it will be able to access it.
The workfile is kept in a neutral location where all three appraisers will be able to access it.
Each appraiser maintains a copy of the workfile.
One appraiser maintains custody of the workfile and the other two appraisers make access and retrieval arrangements.
The workfile is posted on the Internet, so that anyone who wants to see it will be able to access it.
74
The requirement to create and maintain a workfile for an appraisal or appraisal review assignment applies to:
Only trainees or assistants
Appraisers, clients, and intended users
Only licensed or certified appraisers
All appraisers, regardless of credential level
All appraisers, regardless of credential level
75
The credibility of assignment results is measured in the context of:
The attainment of the client’s stipulated result
The intended use
The amount of the value conclusion
Lending guidelines
The intended use
76
```
Appraisers have broad _________ and significant _________ in determining the appropriate scope of work in an assignment.
Acceptance, liability
Flexibility, responsibility
Errors, omissions
Boundaries, limitations
```
Flexibility, responsibility
77
```
In order to determine the appropriate scope of work, the appraiser must ________ the problem to be solved.
Value
Solve
Identify
Accept
```
Identify
78
Identification of the intended use of an appraiser's opinions and conclusions is:
Not necessary in most appraisal assignments
Necessary only when doing non-mortgage assignments
Not required unless the client wants the intended use to be disclosed
Necessary for determining the appropriate scope of work
Necessary for determining the scope of work
79
```
Examples of assignment conditions include:
Extraordinary assumptions
All of these answers
Laws and regulations
Hypothetical conditions
```
All of these
80
Intended use is:
One of the last determinations to be made before submitting the report
Not necessary to determine in an appraisal review assignment
Identified by the appraiser on the basis of communication with the client
Determined by the client on the basis of communication with the appraiser
Identified by the appraiser on the basis of communication with the client
81
In an appraisal or appraisal review assignment, the scope of work is an ___________ process.
Ongoing
Unnecessary
Inflexible
Ongoing
82
```
The responsibility for determining an appropriate scope of work rests with the:
Client
Intended users
Appraiser's peers
Appraiser
```
Appraiser
83
```
An appraiser must not allow client objectives to cause the assignment results to be _________.
Basic
Biased
Credible
Reliable
```
Biased
84
```
An appraiser's report must contain ____________ to allow intended users to understand the scope of work performed.
A pre-printed statement
A section titled "scope of work"
No disclosure
Sufficient information
```
Sufficient Information
85
```
The SCOPE OF WORK RULE provides appraisers with significant flexibility. Along with that flexibility comes:
Deniability
Release from liability
Responsibility
Creative license
```
Responsibility
86
If a client’s objectives result in an appraiser developing biased assignment results:
The client has violated USPAP
This is permissible as long as the appraiser discloses the bias
The appraiser is solely responsible
The appraiser is not responsible; after all, he was just following orders
The appraiser is solely responsible
87
An appraiser's peers are defined as other appraisers who:
Hold the same level of state licensure
Have expertise and competency in a similar type of assignment
Practice in the same market
Have a similar level of education
Have expertise and competency in a similar type of assignment
88
In reporting the scope of work in an appraisal or appraisal review report:
The report must contain sufficient information so that intended users understand the scope of work
The scope of work must be described in narrative style
All written reports must contain a specific section titled “Scope of Work”
Use of pre-printed forms is prohibited
The report must contain sufficient information so that intended users understand the scope of work
89
An appraiser is engaged to appraise a single-unit dwelling. Upon inspection of the property, the appraiser realizes it is a three-unit dwelling. The appraiser’s best course of action is:
Withdraw from the assignment
Continue with the same scope of work that was initially planned
Use a hypothetical condition to appraise the property as a single-unit
Reconsider the scope of work before proceeding
Reconsider the scope of work before proceeding
90
```
A reviewer is responsible for ensuring that there is __________ in a review report so that it can be properly understood by __________.
Credible data; anyone
Current information; intended users
Sufficient information; intended users
Meaningful analysis; anyone
```
sufficient information; intended users
91
An appraisal review report:
must be separate from the work under review
must be written
must be prepared using a pre-printed report form
has no minimum content requirements under USPAP
Must be separate from the work under review
92
A reviewer is preparing an appraisal review report using a pre-printed form that was created by the client. The form does not have space for all of the minimum report content requirements of USPAP. What should the reviewer do?
Fill out the form and omit everything that does not fit
Withdraw from the assignment
Supplement the form with the required content items
Use a different form to report the appraisal review
Supplement the form with the required content items
93
A reviewer is preparing an appraisal review report. The identity of the appraiser who completed the work under review was not provided by the reviewer’s client. What should the reviewer do?
Withdraw from the assignment
State, in the appraisal review report, that the appraiser’s identity was withheld by the client
Do not mention the issue of the appraiser’s identity in the appraisal review report
Send a request in writing for the client to provide the appraiser’s identity, because USPAP requires the client to provide it
State, in the appraisal review report, that the appraiser’s identity was withheld by the client
94
A reviewer is reviewing a real property appraisal and has developed her own value opinion that differed from the value opinion in the work under review. When reporting her value opinion in the appraisal review report, what must the reviewer do?
State “I disagree with the value conclusion in the work under review” and go no further
List the specific Standards Rules that were violated by the appraiser who completed the work under review
State her value opinion and reference supporting information that is retained in the reviewer’s workfile
Provide data and analysis that matches the reporting requirements for an Appraisal Report
Provide data and analysis that matches the reporting requirements for an Appraisal Report
95
Is a reviewer permitted by USPAP to use information that was not available to the original appraiser to discredit the work under review?
Yes
USPAP does not address this issue
No
No
96
```
As part of an appraisal review assignment, a reviewer develops his own opinion of value that differs from the original appraiser’s value opinion. How many certifications does USPAP require in the appraisal review report for this assignment?
Zero
Three
One
Two
```
One
97
If a reviewer provides an oral report of an appraisal review
the reviewer has violated USPAP
the reviewer is precluded from developing his or her own opinion of value
it is not necessary that the appraiser sign a certification
a signed certification must be inserted into the workfile
a signed certification must be inserted into the workfile
98
A reviewer performing an appraisal review must not sign the work under review unless he or she intends to accept the responsibility as a co-signer of the work.
True
False
True
99
If an appraiser is asked to develop an opinion of the quality of another appraiser's work and to agree or disagree with the value conclusion
the appraiser must prepare written report
this is an appraisal consulting assignment
this is a two-stage assignment
the appraiser would violate USPAP by agreeing to perform the assignment
this is a two-stage assignment
100
Which of these examples indicates that a reviewer DID NOT develop his own opinion of value in an appraisal review assignment?
I reject the value conclusion as lacking credibility due to the errors and inconsistencies found.
I concur with the value conclusion.
In my opinion, the value conclusion is too high.
I do not agree with the value conclusion.
I reject the value conclusion as lacking credibility due to the errors and inconsistencies found.
101
STANDARD 2 sets forth requirements for
Style and format of a real property appraisal report
The use of standard appraisal forms
Appraisal report content
Appraisal Report Content
102
The use of standard appraisal reporting forms
Is prohibited by USPAP
Requires approval by the ASB and AQB
Is mandated by STANDARD 2
Is not required by STANDARD 2
Is not required by STANDARD 2
103
What is the essential difference between the two reporting options?
The report form and format prescribed by USPAP
An Appraisal Report is the shorter and more abbreviated option
The content and level of information
A Restricted Appraisal Report does not require the appraiser to maintain a workfile
The content and level of information
104
The two written report options stated in Standards Rule 2-2 are
Form Report and Narrative Report
Written Appraisal Report and Electronic Appraisal Report
Appraisal Report and Automated Valuation Model
Appraisal Report and Restricted Appraisal Report
Appraisal Report and Restricted Appraisal Report
105
An appraiser’s client requests anonymity and asks that their identity not appear in the Appraisal Report that is prepared for the assignment. What must the appraiser do?
State in the report that the client’s identity has been withheld at the client’s request
Use care not to violate the Confidentiality section of the ETHICS RULE
All of these actions must be taken
Document the identity of the client in the workfile
All of these actions must be taken
106
```
When reporting the results of an appraisal, dates that must be included are
Effective date and report date
Inspection date and assignment date
Inspection date and report date
Effective date and inspection date
```
Effective date and report date
107
Which of the following is NOT required by USPAP to be in an Appraisal Report?
Client's specific name
Name or type of other intended users
Effective date of appraisal
Type and definition of value
Client's specific name
108
An appraiser determines that the cost approach is not necessary in an appraisal assignment, and therefore does not develop the approach. In the Restricted Appraisal Report for the assignment, what must the appraiser do?
Develop the approach and keep it in the workfile in case the client wants it later
Develop the approach and put in the report anyway
State the reason for the exclusion of the approach
Omit the approach from the report without mentioning i
State the reason for the exclusion of the approach
109
```
In an Appraisal Report, the scope of work used to develop the appraisal must be
stated
summarized
described
omitted
```
Summarized
110
All written appraisal reports must contain
maps, sketches, and photographs
a letter of transmittal
adequate detail to allow any reader to understand the appraisal process
a signed certification
A signed certification
111
When an extraordinary assumption is used in an appraisal, the report must
state the extraordinary assumption and
provide proof of client approval for the extraordinary assumption
also value the property without the extraordinary assumption
state that its use may have affected the assignment results
explain it in an addendum to the report
state that its use may have affected the assignment results
112
An appraiser is preparing a Restricted Appraisal Report in a situation where there are intended users in addition to the client. Which statement is true regarding this situation?
These additional intended users must be identified in the report by name.
These additional intended users may be identified in the report by either name or type.
These additional intended users must be identified in the report by type.
The appraiser has violated USPAP by using a Restricted Appraisal Report in this situation.
These additional intended users must be identified in the report by name
113
```
According to USPAP, any appraiser who signs any part of an appraisal report is required to
read the report
sign a certification
sign the letter of transmittal
inspect the property
```
Sign a certification
114
Which of the following best describes bias in appraisal practice?
It is not permitted
It is permitted in market analysis
It is allowed, as long as it is disclosed in the report
It is acceptable if disclosed prior to accepting the assignment
It is not permitted
115
What is the purpose of including a signed certification in an appraisal report?
Because it is required by Fannie Mae
To prove that an actual written report was provided by the appraiser
To certify that the appraiser was of sound mind
For the appraiser to acknowledge his or her ethical obligations
For the appraiser to acknowledge his or her ethical obligations
116
To the extent possible and appropriate, oral appraisal reports for real property must address the substantive matters that apply to a(n)
Appraisal Report
Appraisal Review Report
Restricted Appraisal Report
Appraisal Report
117
An appraiser provides an oral report of a real property appraisal. Which statement is CORRECT?
The appraiser must send a written, signed, and dated certification to the client after she provides the oral report.
The appraiser must add a signed and dated certification to her appraisal workfile.
The appraiser has no USPAP reporting obligations because she provided an oral report.
Because she gave an oral report, the appraiser does not have to sign a certification.
The appraiser must add a signed and dated certification to her appraisal workfile.
118
USPAP requires an appraiser to obtain a release from a previous client before appraising the same property for a new client.
True
False
False
119
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If a client requests a more current valuation on a property that was the subject of a prior assignment, this is a(n) ____________.
appraisal consulting assignment
extension of a prior assignment
recertification of value
new assignment
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New Assignment
120
An appraiser completes an appraisal for Bank A. Two months later, he is contacted by Bank B, who asks him to “readdress” his prior report to them. Which statement is TRUE about the appraiser's USPAP obligations?
He can “readdress” the report if he obtains permission from Bank A.
He is not permitted to do a new appraisal for Bank B because he appraised the same property for Bank A within the last three years.
He can “readdress” the report only if the value and/or market conditions have not changed.
He is not permitted to “readdress” the report to Bank B.
He is not permitted to "readdress" the report to Bank B
121
A trainee assisted a senior appraiser in an appraisal assignment, but the trainee appraiser does not sign a certification. The trainee’s name is stated in the certification as having provided significant appraisal assistance. Is a description of the trainee’s assistance also required to be in the certification?
No
Yes
USPAP is silent on this issue
No
122
If a supervising appraiser makes changes to a trainee's appraisal report which the trainee does not agree with, the trainee should
not sign the certification
sign the certification because the supervisor knows best
give the supervisor blanket permission to sign all reports for him
Not sign the certification
123
The requirements of STANDARD 1 can be used as a checklist by an appraiser who is developing a real property appraisal. True or False.
True
124
Which statement is FALSE regarding STANDARD 1?
It mirrors the appraisal process.
It covers real and personal property appraisal development.
It contains six Standards Rules.
It can be used as a checklist for proper development.
It covers real and personal property appraisal development
125
An appraiser’s client wishes to remain anonymous, and asks the appraiser not to include client’s identity in an appraisal report. What should the appraiser do?
Withdraw from the assignment
Identify the client by an alias in the report
Omit the client’s identity from the report but document the client’s identity in the workfile
Insist on including the client’s identity in the report against the client’s wishes
Omit the client's identity from the report but document the client's identity in the workfile
126
If a mortgage borrower receives a copy of an appraisal report from a mortgage lender as a result of disclosure requirements:
The borrower is now considered an intended user under USPAP
This is an illegal act by the lender, who is subject to prosecution
The appraiser can void the appraisal at his/her discretion
This does not make the borrower an intended user
This does not make the borrower an intended user
127
When does a series of minor errors potentially result in a USPAP violation?
When the errors were made by a trainee assisting the appraiser
When the series of errors affects the credibility of the results
When the client has to request corrections from the appraiser after the report has been completed
When there are more than 3 such errors in the report
When the series of errors affects the credibility of the results
128
Exposure time is:
A fact to be found
Not required to be reported
An opinion developed by an appraiser
Unnecessary in most appraisal assignments
An opinion developed by the appraiser
129
Which statement is TRUE regarding exposure time?
It is necessary in all appraisal assignments.
It is always assumed to begin on the effective date of the appraisal and extend out into the future.
It is always assumed to precede the effective date of the appraisal.
It is always assumed to precede the effective date of the appraisal
130
What is the primary purpose of an appraiser making an inspection of the subject property?
To prove to the client that the appraiser knows the property
To collect information about characteristics that are relevant to value
To meet the USPAP requirement that all subject properties be inspected
All of the answers listed
To collect information about characteristics that are relevant to value
131
An example of a relevant property characteristic that could affect a real property appraisal assignment would be:
The type of report requested by the client
The amount of time that is given for the appraiser to complete the assignment
The fact that the subject property is affected by an easement
The fact that the subject property is affected by an easement
132
When appraising a property with proposed improvements, what type of value opinion is permitted by USPAP?
A current value only
A prospective value only
Both current and prospective values
Both current and prospective values
133
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An extraordinary assumption may be used in an assignment only if:
Approved by the client
Accompanied by a limiting condition
Mandated by law or regulation
Required to develop credible results
```
Required to develop credible results
134
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When an appraiser provides a current value opinion on a proposed new building, he or she is utilizing a(an) _____________ that the proposed improvements are completed as of the effective date of the appraisal.
Hypothetical condition
Extraordinary assumption
Unethical contingency
Limiting condition
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Hypothetical Condition
135
When developing a sales comparison approach under USPAP:
Guidelines for time and distance specified by SR 1-4 must be followed
The appraiser must consider at least three comparable sales
The appraiser must analyze such data as are available to indicate a value conclusion
The appraiser must analyze such data as are valuable to indicate a value conclusion
136
Which statement is TRUE regarding USPAP and the three approaches to value?
USPAP requires specific methodology for developing the cost and income approaches, but not the sales comparison approach.
An appraiser must develop all three approaches to value in every appraisal assignment.
An assignment condition may require an appraiser to develop an approach that he or she would otherwise consider unnecessary.
USPAP requires that at least two of the three approaches be developed in every appraisal assignment.
An assignment condition may require an appraiser to develop an approach that he or she would otherwise consider unnecessary.
137
When analyzing the subject property’s sales history in a real property appraisal assignment, an appraiser is required by USPAP to analyze ______________.
Prior sales of both the subject and comparable properties
The most recent sale of the subject property, regardless of when it occurred
All sales of the subject property that occurred within three years prior to the effective date of the appraisal
Only the most recent sale of the subject property, if it occurred within the last three years
All sales of the subject property that occurred within three years prior to the effective date of the appraisal
138
When analyzing listings of the subject property in a real property appraisal assignment, USPAP requires an appraiser to analyze, at a minimum, ____________.
Current listings
All listings that occurred within the last year
All listings that occurred within the last three years
Current Listings
139
The process of reconciliation entails ___________.
Averaging the indicated values to arrive at a final value opinion
Changing the adjustments to bring the indicated values into a tighter range
Careful consideration of the quality and quantity of data
Complying with a client's request to find additional comparable sales that support the appraiser's opinion of value
Careful consideration of the quality and quantity of data
140
When is it necessary to analyze prior listings of the subject property in a real property appraisal assignment?
In all appraisal assignments, regardless of property type
Only in the appraisal of non-residential real property
When such analysis is relevant to the current assignment
Only in real property appraisal assignments
When such analysis is relevant to the current assignment
141
In the development of an appraisal, the appraiser is required to:
Not commit a substantial error that significantly affects the appraisal
Make a personal inspection of the subject property
Inspect the comparable sales by at least driving by them
Use all three approaches to value
Not commit a substantial error that significantly affects the appraisal
142
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Which of these is considered an integral part of USPAP and has the same weight as the components they address?
USPAP FAQs
Advisory Opinions
USPAP Q&As
Comments
```
Comments
143
Which part of USPAP establishes the requirements for workfile content for an appraisal or appraisal review assignment?
JURISDICTIONAL EXCEPTION RULE
Advisory Opinions
RECORD KEEPING RULE
COMPETENCY RULE
Record-Keeping Rule
144
Which step in the appraisal process involves communication of the appraiser's opinions and conclusions?
Determination of scope of work
Reporting
Receipt of fee from the client
Identification of the problem
Reporting
145
In USPAP, the appraisal process is divided into two distinct types of activity: _________ and __________.
Opinion, conclusion
New, old
Development, reporting
Analysis, appraisal
Development, reporting
146
Qualification criteria for appraiser certification and recertification are disseminated to state appraisal boards by the:
ASC
AQB
ASB
AQB
147
Which entity is responsible for establishing education and experience requirements for licensing and certification of appraisers?
ASC
AQB
ASB
AQB
