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National USPAP Course
Exam with 100%
correct Answers 2024
The Appraisal Foundation has the authority to enforce the requirements of USPAP. correct answerFalse Currently, the boards within the Appraisal Foundation include: correct answerAppraisal Standards Board, Appraisal Qualifications Board, Board of Trustees Which Foundation board is responsible for USPAP? correct answerAppraisal Standards Board Qualification criteria for appraiser certification and recertification are disseminated to state appraisal boards by the: correct answerAppraisal Qualifications Board Which entity is responsible for establishing education and experience requirements for licensing and certification of appraisers? correct answerAppraisal Qualifications Board Which entity appoints members of the AQB and ASB? correct answerBoard of Trustees USPAP is written, amended, and interpreted by the: correct answerAppraisal Standards Board Advisory Opinions are best described as: correct answernot part of USPAP, but included as reference material Who is responsible for issuing credentials to individual appraisers? correct answerState appraisal regulatory agencies Which entity maintains the official National Registry of state-certified and licensed
appraisers? correct answerAppraisal Subcommittee (ASC) Which is NOT a responsibility of the Appraisal Subcommittee (ASC)? correct answerwriting, interpreting and amending USPAP
The requirement for USPAP compliance in an appraisal assignment could be the result of correct answerlaw or regulation, voluntary choice by the appraiser, or agreement with the client A valuation service that is premised upon advocacy: correct answercannot be performed by an individual acting as an appraiser 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. correct answermislead USPAP states that in a situation when an individual is not required by law, regulation, or agreement to comply with USPAP: correct answerthe individual should still comply when he or she is acting as an appraiser A preference or inclination that precludes an appraiser's impartiality, independence, or objectivity is: correct answerbias 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: correct answeran extraordinary assumption If an appraiser assumes a condition to be true that does not exist for the purposes of analysis, this is an example of: correct answerhypothetical condition 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: correct answercost "The monetary relationship between properties and those who buy, sell or use those properties" is the definition of: correct answervalue 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? correct answerprice
An appraiser performs an appraisal assignment and develops an opinion of value. This value opinion is correct answeran assignment result It is permissible for an appraiser to be engaged in an assignment by an agent, who is acting on behalf of the client. correct answertrue According to USPAP, the party or parties who engage an appraiser in a specific assignment defines the: correct answerclient Who is responsible for making the identification of the intended use in an assignment? correct answerthe appraiser An intended user is: correct answerA party who is identified by the appraiser based on communication with the client at the time of the assignment Which is the broader category of services? correct answervaluation services A workfile must be maintained for: correct answerappraisal and appraisal review assignments only Appraisal practice includes only: correct answervaluation services provided by an individual acting as an appraiser 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? correct answera valuation service An appraiser is permitted to be biased when performing an appraisal, as long as the bias is properly disclosed. correct answerfalse "The type and extent of research and analyses in an appraisal or appraisal review assignment" is the definition of. correct answerscope of work In USPAP, each Standard is composed of: correct answerstandards rules
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? correct answerApril 2024 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? correct answerNo, a true copy must include a signature Is an appraiser permitted by USPAP to create a workfile after transmitting the report to the client? correct answerNo Which statement best describes the word "competency" as it relates to appraisal practice? correct answerIt is fundamental to the definition of "appraiser" In order to perform an assignment for which an appraiser initially lacks the knowledge and experience to complete competently, the appraiser must: correct answerdisclose to the client, prior to agreeing to perform the assignment, the lack of knowledge or experience Three appraisers work together on an appraisal assignment. What would NOT be an appropriate workfile arrangement under USPAP? correct answerthe workfile is posted on the internet, so that anyone who wants to see it will be able to access it The requirement to create and maintain a workfile for an appraisal or appraisal review assignment applies to: correct answerall appraisers, regardless of credential level The credibility of assignment results is measured in the context of: correct answerthe intended use In order to determine the appropriate scope of work, the appraiser must the problem to be solved. correct answeridentify Appraisers have broad and significant in determining the appropriate scope of work in an assignment. correct answerflexibility, responsibilities
In reporting the scope of work in an appraisal or appraisal review report: correct answerthe report must contain sufficient information so that intended users understand the scope of work If an assignment involves a jurisdictional exception, what must an appraiser do? correct answerIdentify 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 What is the purpose of the JURISDICTIONAL EXCEPTION RULE? correct answerTo provide a saving or severability clause to preserve the balance of USPAP If USPAP compliance is mandated by federal law, no state or local law can create a jurisdictional exception. correct answertrue When a law or regulation precludes compliance with any part of USPAP, appraisers must: correct answercomply with that law or regulation The use of the JURISDICTIONAL EXCEPTION RULE in an assignment is a matter of choice by an appraiser. correct answerfalse As used in the JURISDICTIONAL EXCEPTION RULE, the term "law" includes. correct answerlegislative laws, administrative rules and ordinances, and court-made laws Is it permissible to use instructions from an attorney as a basis for a jurisdictional exception? correct answerno When does a jurisdictional exception occur in an assignment? correct answerit is automatic when a law precludes compliance with a part of USPAP A state passes a law requiring appraisers to keep their workfiles for 10 years after preparation. Is this a jurisdictional exception under USPAP? correct answerno Which of these would be considered an example of a jurisdictional exception in an appraisal assignment? correct answerA probate court paying appraisers based on the value of the subject property
The requirements of STANDARD 1 can be used as a checklist by an appraiser who is developing a real property appraisal. correct answertrue What is false regarding Standard 1? correct answerit covers real and personal property development 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? correct answerOmit the client's identity from the report but document the client's identity in the workfile If a mortgage borrower receives a copy of an appraisal report from a mortgage lender as a result of disclosure requirements: correct answerthis does not make the borrower an intended user When does a series of minor errors potentially result in a USPAP violation? correct answerWhen the series of errors affects the credibility of the results Exposure time is: correct answeran opinion developed by an appraiser What is true regarding exposure time? correct answerIt is always assumed to precede the effective date of the appraisal. When appraising a property with proposed improvements, what type of value opinion is permitted by USPAP? correct answerboth current and prospective values An example of a relevant property characteristic that could affect a real property appraisal assignment would be: correct answerThe fact that the subject property is affected by an easement What is the primary purpose of an appraiser making an inspection of the subject property? correct answerTo collect information about characteristics that are relevant to value 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. correct answerhypothetical condition
The use of standard appraisal reporting forms correct answeris not required by Standard 2 What is the essential difference between the two reporting options? correct answerthe content and level of information The two written report options stated in Standards Rule 2-2 are correct answerAppraisal Report and Restricted Appraisal Report 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? correct answerState in the report that the client's identity has been withheld at the client's request, document the identity of the client in the workfile, use care not to violate the Confidentiality section of the ETHICS RULE When reporting the results of an appraisal, dates that must be included are correct answereffective date and report date 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? correct answerstate the reason for the exclusion of the approach In an Appraisal Report, the scope of work used to develop the appraisal must be correct answersummarized All written appraisal reports must contain correct answera signed certification 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? correct answerThese additional intended users must be identified in the report by name. When an extraordinary assumption is used in an appraisal, the report must state the extraordinary assumption and correct answerstate that its use may have affected the assignment results
What is the purpose of including a signed certification in an appraisal report? correct answerFor the appraiser to acknowledge his or her ethical obligations According to USPAP, any appraiser who signs any part of an appraisal report is required to correct answersign a certification To the extent possible and appropriate, oral appraisal reports for real property must address the substantive matters that apply to a(n) correct answerAppraisal Report An appraiser provides an oral report of a real property appraisal. Which statement is CORRECT? correct answerThe appraiser must add a signed and dated certification to her appraisal workfile. If a client requests a more current valuation on a property that was the subject of a prior assignment, this is a(n). correct answernew assignment 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? correct answerHe is not permitted to "readdress" the report to Bank B. USPAP requires an appraiser to obtain a release from a previous client before appraising the same property for a new client. correct answerFalse If a supervising appraiser makes changes to a trainee's appraisal report which the trainee does not agree with, the trainee should correct answernot sign the certification 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? correct answerno In STANDARD 3, the word "reviewer" means: correct answeran appraiser who is performing an appraisal review
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? correct answerProvide data and analysis that matches the reporting requirements for an Appraisal Report 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? correct answerState, in the appraisal review report, that the appraiser's identity was withheld by the client Is a reviewer permitted by USPAP to use information that was not available to the original appraiser to discredit the work under review? correct answerno 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? correct answer If a reviewer provides an oral report of an appraisal review correct answera signed certification must be inserted into the workfile 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. correct answertrue What indicates that a reviewer DID NOT develop his own opinion of value in an appraisal review assignment? correct answerI reject the value conclusion as lacking credibility due to the errors and inconsistencies found. 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 correct answerthis is a two- stage assignment STANDARD 5 is most similar in structure to: correct answerStandard 1 STANDARD 5, Mass Appraisal, Development, applies to: correct answerBoth real and personal property
Notifications sent to property owners of the results of a mass appraisal, which may be required by public policy, are considered: correct answerNotifications, and not reports An appraiser is engaged by her local county assessment board to complete an appraisal on an apartment building for ad valorem taxation purposes. Which USPAP STANDARD(S) apply to this assignment? correct answerSTANDARDS 1 and 2 In a personal property appraisal assignment that includes multiple objects as part of the same assignment: correct answerThe objects that are more significant to the assignment results should be the focus of the analysis An appraiser must recognize that there are distinct levels of trade in personal property, and each may have different comparable data. correct answerTrue When appraising personal property, the appraiser must analyze prior sales of the subject over what time period? correct answerA reasonable and applicable time An appraiser is developing an appraisal and will be reporting it in a Restricted Appraisal Report. Because this less detailed reporting option is being used, is the appraiser permitted to use an abbreviated appraisal development process? correct answerno Under STANDARD 8, a personal property appraiser has written report options. correct answer An appraiser's certification in a business or intangible asset appraisal report does not: correct answerContain a reference to the inspection of the subject property* A written business appraisal report must be prepared in accordance with: correct answerAppraisal Report or Restricted Appraisal Report An appraisal that takes into consideration the full effect of known environmental contamination would be considered: correct answer"As-is"
appraiser must perform assignments without accommodation of personal interests (promise of additional work). Additionally, an appraiser must not advocate the cause or interest of any party (either the mortgage broker or the homeowner). A client wants to know the current value, as though repaired, of a property that has been damaged due to flooding from a severe storm. What type of assignment condition should the appraiser use? correct answerThe appraiser should use a hypothetical condition because the property as if repaired does not currently exist as of the effective date. A client has repaired a property that was damaged due to flooding. Several neighboring properties that were similarly flooded and later repaired soon developed mold problems. The client's property shows no evidence of mold as of the effective date. What type of assignment condition should the appraiser use if the client wants a current value opinion of the property? correct answerThe appraiser should use an extraordinary assumption, because as of the date of value, the fact of the potential condition (i.e., mold) is unknown, and it is reasonable to believe the current condition is true. An appraiser performed the cost approach in an appraisal of a new warehouse. The buyer paid $1.9 million for the building and site. The property's market value was $2 million. Identify each of the three components: the reproduction cost developed by the appraiser, the $1.9 million figure, and the $2 million figure as (a) fact, (b) an estimate of fact, or (c) an opinion in relation to the appraisal of this property. correct answerThe reproduction cost developed by the appraiser is an estimate of fact (b). The $1.9 million sale is the price as a stated fact (a). The $2 million value of the property is the appraiser's opinion (c). A client requests "a number" over the phone in advance of the written appraisal report. How should an appraiser handle this type of request? correct answerThis is an additional report - an oral report. A summary of the oral report and a signed and dated certification must be included in the workfile. Additionally, the workfile must contain a true copy of the written report that is delivered to the client.
