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The Appraisal Foundation has the authority to enforce the requirements of USPAP. - ✔✔False Currently, the boards within the Appraisal Foundation include: - ✔✔Appraisal Standards Board, Appraisal Qualifications Board, Board of Trustees Which Foundation board is responsible for USPAP? - ✔✔Appraisal Standards Board Qualification criteria for appraiser certification and recertification are disseminated to state appraisal boards by the: - ✔✔Appraisal Qualifications Board Which entity is responsible for establishing education and experience requirements for licensing and certification of appraisers? - ✔✔Appraisal Qualifications Board Which entity appoints members of the AQB and ASB? - ✔✔Board of Trustees USPAP is written, amended, and interpreted by the: - ✔✔Appraisal Standards Board Advisory Opinions are best described as: - ✔✔not part of USPAP, but included as reference material Who is responsible for issuing credentials to individual appraisers? - ✔✔State appraisal regulatory agencies Which entity maintains the official National Registry of state-certified and licensed appraisers? - ✔✔Appraisal Subcommittee (ASC)
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Which is NOT a responsibility of the Appraisal Subcommittee (ASC)? - ✔✔writing, interpreting and amending USPAP USPAP is enforced by: - ✔✔state appraiser licensing/certification agencies Which part of USPAP establishes the requirements for workfile content for an appraisal or appraisal review assignment? - ✔✔Record Keeping Rule Why are USPAP Advisory Opinions issued? - ✔✔to offer advice Which of these is considered an integral part of USPAP and has the same weight as the components they address? - ✔✔comments The first step in the appraisal process is: - ✔✔identify the problem In USPAP, the appraisal process is divided into two distinct types of activity: and.
- ✔✔development, reporting Which step in the appraisal process involves communication of the appraiser's opinions and conclusions?
- ✔✔reporting The PREAMBLE states that USPAP intended to benefit: - ✔✔appraisers and users of appraisal services When obligated by law or regulation, an appraiser comply with USPAP. - ✔✔must What is the stated purpose of USPAP? - ✔✔Promote and maintain a high level of public trust in appraisal practice To which property types does USPAP apply? - ✔✔Both tangible and intangible property
An appraiser performs an appraisal assignment and develops an opinion of value. This value opinion is - ✔✔an 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. - ✔✔true According to USPAP, the party or parties who engage an appraiser in a specific assignment defines the: - ✔✔client Who is responsible for making the identification of the intended use in an assignment? - ✔✔the appraiser An intended user is: - ✔✔A 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? - ✔✔valuation services A workfile must be maintained for: - ✔✔appraisal and appraisal review assignments only Appraisal practice includes only: - ✔✔valuation 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? - ✔✔a valuation service An appraiser is permitted to be biased when performing an appraisal, as long as the bias is properly disclosed. - ✔✔false "The type and extent of research and analyses in an appraisal or appraisal review assignment" is the definition of. - ✔✔scope of work
In USPAP, each Standard is composed of: - ✔✔standards rules The ethical obligations of USPAP apply to: - ✔✔Individual appraisers only In appraisal practice, advocating the cause or interest of any party or issue is: - ✔✔not permitted 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. - ✔✔ 3 years An appraiser is disclosing to a client the fact that she had previously appraised the subject property within the prior three years. When making this disclosure, the appraiser must be careful to: - ✔✔not disclose confidential information from the previous assignment 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, the fee arrangement is an unethical contingency arrangement and violates the Ethics Rule 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 report is transmitted to the client by the due date In most cases, an appraiser may share from an appraisal assignment with other appraisers without obtaining the client's consent. - ✔✔physical characteristics The Confidentiality section of the ETHICS RULE prohibits an appraiser from disclosing confidential information or to unauthorized parties. - ✔✔assignment results An appraiser concludes that a subject property has functional inadequacies. This conclusion is: - ✔✔an assignment result and must be treated as confidential 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.
Examples of assignment conditions include: - ✔✔hypothetical conditions, extraordinary assumptions, and laws and regulations Intended use is: - ✔✔Identified by the appraiser on the basis of communication with the client Identification of the intended use of an appraiser's opinions and conclusions is: - ✔✔necessary for determining the appropriate scope of work In an appraisal or appraisal review assignment, the scope of work is an process. - ✔✔ongoing The responsibility for determining an appropriate scope of work rests with the: - ✔✔appraiser An appraiser's report must contain to allow intended users to understand the scope of work performed. - ✔✔sufficient information An appraiser must not allow client objectives to cause the assignment results to be. - ✔✔biased If a client's objectives result in an appraiser developing biased assignment results: - ✔✔the appraiser is solely responsible The SCOPE OF WORK RULE provides appraisers with significant flexibility. Along with that flexibility comes: - ✔✔responsibility 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: - ✔✔reconsider the scope of work before proceeding An appraiser's peers are defined as other appraisers who: - ✔✔have expertise and competency in a similar type of assignment
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 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 What is the purpose of the JURISDICTIONAL EXCEPTION RULE? - ✔✔To 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. - ✔✔true When a law or regulation precludes compliance with any part of USPAP, appraisers must: - ✔✔comply with that law or regulation The use of the JURISDICTIONAL EXCEPTION RULE in an assignment is a matter of choice by an appraiser. - ✔✔false As used in the JURISDICTIONAL EXCEPTION RULE, the term "law" includes. - ✔✔legislative 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? - ✔✔no When does a jurisdictional exception occur in an assignment? - ✔✔it 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? - ✔✔no Which of these would be considered an example of a jurisdictional exception in an appraisal assignment?
- ✔✔A probate court paying appraisers based on the value of the subject property
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 An extraordinary assumption may be used in an assignment only if: - ✔✔required to develop credible results An unacceptable assignment condition would be a condition that: - ✔✔Limits report content, resulting in a misleading report, Limits the scope of work to the extent that the value opinion is not credible, and precludes an appraiser's impartiality When developing a sales comparison approach under USPAP: - ✔✔the appraiser must analyze such data as are available to indicate a value conclusion Which statement is TRUE regarding USPAP and the three approaches to value? - ✔✔An assignment condition may require an appraiser to develop an approach that he or she would otherwise consider unnecessary. When analyzing listings of the subject property in a real property appraisal assignment, USPAP requires an appraiser to analyze, at a minimum,. - ✔✔Current listings 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 When is it necessary to analyze prior listings of the subject property in a real property appraisal assignment? - ✔✔When such analysis is relevant to the current assignment In the development of an appraisal, the appraiser is required to: - ✔✔Not commit a substantial error that significantly affects the appraisal The process of reconciliation entails. - ✔✔Careful consideration of the quality and quantity of data
STANDARD 2 sets forth requirements for - ✔✔Appraisal report content The use of standard appraisal reporting forms - ✔✔is not required by Standard 2 What is the essential difference between the two reporting options? - ✔✔the content and level of information The two written report options stated in Standards Rule 2 - 2 are - ✔✔Appraisal 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? - ✔✔State 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 - ✔✔effective 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? - ✔✔state the reason for the exclusion of the approach In an Appraisal Report, the scope of work used to develop the appraisal must be - ✔✔summarized All written appraisal reports must contain - ✔✔a 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? - ✔✔These additional intended users must be identified in the report by name.
In STANDARD 3, the word "reviewer" means: - ✔✔an appraiser who is performing an appraisal review When developing an appraisal review, USPAP requires a reviewer to identify the appraiser who completed the work under review: - ✔✔unless the identity has been withheld by the client A reviewer is performing an appraisal review on an appraisal report prepared on a residential property. The reviewer is required by USPAP to: - ✔✔Identify whether it is necessary to develop his or her own value opinion as part of the appraisal review assignment In performing an appraisal review, a reviewer may use information that was not available to the original appraiser in the normal course of business, as long as the information: - ✔✔is not used in the development of the reviewer's opinion of the quality of the work under review When performing an appraisal review, a reviewer finds information that was available to the original appraiser, but the original appraiser did not consider it when developing the appraisal under review. Does USPAP permit the reviewer to use this information in developing an opinion of the quality of the work under review? - ✔✔Yes Which statement is TRUE regarding USPAP and the appraisal review process for real property? - ✔✔If the reviewer develops his or her own opinion of value, it must be developed under the requirements of STANDARD 1. An appraisal review can be a two-stage assignment, which includes both an appraisal review and a value opinion by the reviewer. - ✔✔true Is a reviewer permitted to file a complaint with a state appraisal regulatory agency without the client's consent? - ✔✔yes An appraisal review report - ✔✔must be separate from the work under review 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? - ✔✔Supplement the form with the required content items
A reviewer is responsible for ensuring that there is in a review report so that it can be properly understood by. - ✔✔Sufficient information; intended users 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? - ✔✔Provide 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? - ✔✔State, 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? - ✔✔no 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? - ✔✔ 1 If a reviewer provides an oral report of an appraisal review - ✔✔a 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. - ✔✔true What 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. 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 - ✔✔this is a two-stage assignment
An appraisal that takes into consideration the full effect of known environmental contamination would be considered: - ✔✔"As-is" In an appraisal report, the use of terms that reflect a scale such as "good" or "average": - ✔✔Should include explanation that provides context The competency required to appraise subsidized housing extends beyond typical residential appraisal competency. - ✔✔true An appraiser agrees to provide a market value appraisal for a client. What is true about this situation? - ✔✔It is essential that the appraiser identify the source of the definition of value to be used. An appraiser provides raw AVM output to a client. This is: - ✔✔Not an appraisal, and no workfile is required 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 Regulations and guidelines that apply to an appraisal for a federally-regulated lending transaction are: - ✔✔Assignment conditions What does the effective date of an appraisal establish? - ✔✔The context of the value opinion 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 Developing an opinion of value of a property as of a specified future date is: - ✔✔A prospective appraisal According to AO-33, the results of discounted cash flow (DCF) analysis should: - ✔✔Be tested and checked for errors and reasonableness
A mortgage client suggested to an appraiser that if he would increase the value conclusion from $520,000 to $525,000 on an appraisal there would be more assignments coming his way. Should the appraiser change his opinion of value since it is less than a 1% difference? - ✔✔No. An 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? - ✔✔The 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? - ✔✔The 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. 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. - ✔✔The 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? - ✔✔This 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.
