Download USPAP 15-Hour Course Questions And Answers and more Exams Commercial Law in PDF only on Docsity!
Update
The concept of public trust means that an appraiser must act: - ANS-- in the public's interest USPAP establishes standards that are applicable in the appraisal of: - ANS-- real property, intangible property, and personal property Which statement is TRUE regarding The Appraisal Foundation and USPAP enforcement authority? - ANS --The Appraisal Foundation does not have the authority to enforce the requirements of USPAP. Which entity is responsible for establishing education and experience requirements for licensing and certification of appraisers? - ANS-- Appraiser Qualifications Board (AQB) Qualification criteria for appraiser certification and recertification are disseminated to state appraisal boards by the: - ANS-- Appraiser Qualifications Board (AQB) Which entity appoints members of the Foundation's independent Boards? - ANS-- Board of Trustees (BOT) USPAP is developed, interpreted, and amended by the: - ANS --Appraisal Standards Board (ASB) Advisory Opinions are best described as - ANS --Not part of USPAP, but included as reference material
Update
The ASB is considering comment letters written by members of the public regarding a proposed revision to USPAP. When reviewing these comment letters, the ASB focuses on: - ANS-- The reasoning and insight presented in the letter Which is NOT a responsibility of the Appraisal Subcommittee (ASC)? - ANS --Developing, amending, and interpreting USPAP Who is responsible for issuing credentials to individual appraisers? - ANS-- State appraisal regulatory agencies Under FIRREA, USPAP is enforced by: - ANS-- State appraiser licensing/certification agencies Which entity maintains the official national registry of state-certified and licensed appraisers? - ANS-- Appraisal Subcommittee (ASC) In USPAP, the appraisal process is divided into two distinct types of activity: _________ and __________. - ANS-- development, reporting Which step in the appraisal process involves communication of the appraiser's opinions and conclusions? - ANS-- reporting The first step in the appraisal process is: - ANS-- Identify the problem A preference or inclination that precludes an appraiser's impartiality, independence, or objectivity is: - ANS --bias
Update
Which of these statements is TRUE about the USPAP definition of client? - ANS-- The client may engage the appraiser through an agent. Which statement about intended users is TRUE? - ANS-- The client is always an intended user Who makes the identification of the intended use in an assignment? - ANS-
- the appraiser An intended user is: - ANS-- A party who is identified by the appraiser based on communication with the client at the time of the assignment A real estate broker completes a Comparative Market Analysis (CMA) on a property that he wants to list for sale. What would this be considered? - ANS-- a valuation service Which is the broader category of services? - ANS --valuation services A workfile must be maintained for: - ANS-- All appraisal and appraisal review assignments Appraisal practice includes only: - ANS-- Valuation services provided by an individual acting as an appraiser In USPAP, each Standard is composed of: - ANS-- Standards rules
Update
What is the stated purpose of USPAP? - ANS-- Promote and maintain a high level of public trust in appraisal practice The PREAMBLE states that USPAP is: - ANS-- For appraisers and users of appraisal services When obligated by law or regulation, an appraiser ________ comply with USPAP. - ANS-- must One of an appraiser's obligations with regard to user expectations is to: - ANS --Identify the capacity in which he or she is performing Which statement is TRUE regarding the relationship between valuation services and appraisal practice? - ANS-- Appraisal practice is a subset of valuation services. What could cause an appraiser to prepare an appraisal assignment in conformance with USPAP? - ANS-- Law or regulation, agreement with the client, or voluntary choice by the appraiser USPAP states that in a situation when an individual is not required by law, regulation, or agreement to comply with USPAP: - ANS --The individual should still comply when he or she is acting as an appraiser When performing valuation services outside of appraisal practice, appraisers must be careful not to __________ the client and other intended users about their role. - ANS-- mislead
Update
The payment of fees by the appraiser in connection with the procurement of an assignment is: - ANS-- Allowed if properly disclosed Confidential information under USPAP is information the appraiser receives from: - ANS-- The client and is identified as confidential, but is not available from other sources The disclosure of confidential information to a third party is unethical unless: - ANS-- authorized by the client A subject property's physical characteristics are ________ assignment results. - ANS-- not An appraiser prepared an appraisal report in April 2015. He testified in court regarding the value of the property in January 2016. The decision was rendered in February 2016 and was appealed in March 2016. The appellate court heard the case in January 2017 and remanded the case for reconsideration by the lower court. Final disposition of the case occurred in September 2017. At a minimum, how long must the appraiser retain his workfile? - ANS-- April 2020 (5 years after appraisal report, April 2015) Which statement about an appraiser's workfile is TRUE? - ANS-- The workfile must be in existence prior to the issuance of a report. Which statement best describes the word "competency" as it relates to appraisal practice? - ANS-- It is fundamental to the definition of "appraiser."
Update
An appraiser accepts an assignment for which she initially does not have the knowledge and experience. She notifies the client of her lack of knowledge and experience and takes the necessary steps to acquire the knowledge and experience. What else (if anything) must she do to comply with USPAP? - ANS--Disclose in the report her initial lack of competency and the steps taken to obtain competency In order to accept an assignment when an appraiser initially lacks the knowledge and experience to complete an assignment competently, he or she must: - ANS-- Disclose to the client, prior to accepting the assignment, the lack of knowledge or experience Which statement about appraisal trainees and workfile obligations is TRUE? - ANS-- Under USPAP, trainees have the same workfile obligations as licensed or certified appraisers. In order to determine the appropriate scope of work, the appraiser must ________ the problem to be solved. - ANS --identify The credibility of assignment results is measured in the context of: - ANS-- the intended use Appraisers have broad _________ and significant _________ in determining the appropriate scope of work in an assignment. - ANS -- Flexibility, responsibility Intended use is: - ANS--Identified by the appraiser on the basis of communication with the client
Update
An appraiser's peers are defined as other appraisers who: - ANS--Have expertise and competency in a similar type of assignment What is the purpose of the JURISDICTIONAL EXCEPTION RULE? - ANS-- To preserve the balance of USPAP if compliance with a part of USPAP is precluded by law or regulation If an assignment involves a jurisdictional exception, what must an appraiser do? - ANS--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 When a law or regulation precludes compliance with any part of USPAP, appraisers must: - ANS--Comply with that law or regulation If a law or regulation precludes an appraiser with complying with a part of USPAP: - ANS--A jurisdictional exception is automatically created Appraisers cannot be expected to be aware of all of the laws and regulations that apply to a particular assignment. - ANS--false As used in the JURISDICTIONAL EXCEPTION RULE, the term "law" includes ____________. - ANS--Constitutions, legislative and court-made law, and administrative rules and ordinances Which statement is FALSE regarding STANDARD 1? - ANS--It covers real and personal property appraisal development.
Update
The requirements of STANDARD 1 can be used as a checklist by an appraiser who is developing a real property appraisal. - ANS--true When does a series of minor errors potentially result in a USPAP violation?
- ANS--When the series of errors affects the credibility of the results STANDARD 1 requires an appraiser to ____________ in developing a real property appraisal. - ANS--Use due diligence and due care Exposure time is: - ANS--Always assumed to precede the effective date of the appraisal When is identification of the intended use of an appraiser's opinions and conclusions necessary in an appraisal assignment? - ANS--it is necessary in all appraisal assignments If a borrower receives a copy of an appraisal report from a mortgage lender as a result of disclosure requirements: - ANS--This does not make the borrower an intended user If a client in an appraisal assignment wishes to remain anonymous, the appraiser must: - ANS--Document the client's identity in the workfile and state in the report that the client's identity has been withheld at the client's request What should an appraiser do if, during the course of an assignment, he or she becomes aware of a change in the intended use of the report? - ANS--
Update
Which statement is TRUE regarding USPAP and the three approaches to value? - ANS--An assignment condition may require an appraiser to develop an approach that he or she would otherwise consider unnecessary. When developing a sales comparison approach under USPAP: - ANS--The appraiser must analyze such data as are available to indicate a value conclusion When analyzing the subject property's sales history in a real property appraisal assignment, an appraiser is required by USPAP to analyze ______________. - ANS--All sales of the subject property that occurred within three years prior to the effective date of the appraisal If an appraiser is asked to appraise a property on which there is a known, current agreement of sale, the agreement must be: - ANS--analyzed in the appraisal When analyzing listings of the subject property in a real property appraisal assignment, USPAP requires an appraiser to analyze, at a minimum, ____________. - ANS--current listings When is it necessary to analyze prior listings of the subject property in a real property appraisal assignment? - ANS--When such analysis is relevant to the current assignment The process of reconciliation entails ___________. - ANS--Careful consideration of the quality and quantity of data
Update
Standards Rule 1-5 requires an appraiser to analyze the sales history of the comparable sales. - ANS--false STANDARD 2 sets forth requirements for: - ANS--Appraisal report content The use of standard appraisal reporting forms: - ANS--Is not required by STANDARD 2 The written report options set forth in Standards Rule 2-2 are - ANS-- Appraisal Report and Restricted Appraisal Report What is the importance of stating the date of the report? - ANS--It establishes the appraiser's perspective on the market Which of the following is NOT required by USPAP to be in an Appraisal Report? - ANS--client's specific name In a Restricted Appraisal Report, the exclusion of any of the valuation approaches must be: - ANS--explained In an Appraisal Report, the scope of work used to develop the appraisal must be: - ANS--summarized Compared to a value opinion expressed in an Appraisal Report, a value opinion expressed in a Restricted Appraisal Report is: - ANS--equally credible
Update
A written summary of an oral appraisal report must be added to the appraiser's workfile ______________ the issuance of an oral report. - ANS-
- within a reasonable time after To the extent possible and appropriate, oral appraisal reports for real property must address the substantive matters that apply to a(n) - ANS-- appraisal report Which statement is TRUE regarding a Recertification of Value? - ANS--It does not change the effective date of the value. If a client requests a more current valuation on a property that was the subject of a prior assignment, this is a(n) ____________. - ANS--new assignment USPAP requires an appraiser to obtain a release from a previous client before appraising the same property for a new client. - ANS--false 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? - ANS--He is not permitted to "readdress" the report to Bank B The client must be the only intended user for: - ANS--Restricted Appraisal Reports
Update
If a supervising appraiser makes changes to a trainee's appraisal report which the trainee does not agree with, the trainee should: - ANS--not sign the certification STANDARD 3 addresses the development of an appraisal review, and _________ addresses reporting of an appraisal review. - ANS-- STANDARD 4 Appraisal review is the process of ___________ an opinion about the quality of another appraiser's work performed as part of an appraisal or appraisal review assignment. - ANS--developing Under USPAP, an appraisal review is performed by an appraiser when developing an opinion of the quality of another appraiser's work that was performed as part of _____________ assignment. - ANS--an appraisal only A reviewer is required to identify the appraiser who completed the work under review, unless: - ANS--the identity has been withheld from the client A review appraiser may use additional information that was not available to the original appraiser as long as the information: - ANS--is not used as the basis to discredit the original appraiser's value opinion Does USPAP permit a reviewer to use an extraordinary assumption in a review assignment? - ANS--yes Which statement is TRUE regarding USPAP and the appraisal review process for real property? - ANS--If the reviewer develops his or her own
Update
An appraisal review report: - ANS--must be separate from the work under review A reviewer performing an appraisal review must not sign the work under review unless he or she: - ANS--intends to accept the responsibility as a co-signer of the work If a reviewer provides an oral report of an appraisal review: - ANS--a signed certification must be inserted into the workfile A statement by a reviewer that "the value opinion stated in the appraisal report is not adequately supported" would be an indication that the reviewer ________ develop his or her own value opinion. - ANS--did not Which of these examples indicates that a reviewer DID NOT develop his own opinion of value in an appraisal review assignment? - ANS--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: - ANS-
- this is a two-stage assignment The process of valuing a universe of properties using standard methodology, employing common data, and allowing for statistical testing is: - ANS--mass appraisal
Update
STANDARD 5, Mass Appraisal, Development, applies to: - ANS--both real and personal property In a written mass appraisal report prepared under STANDARD 6, what is the purpose of a signed certification? - ANS--It serves as an appraiser's acknowledgement of his or her ethical obligations 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? - ANS--STANDARDS 1 and 2 Notifications sent to property owners of the results of a mass appraisal, which may be required by public policy, are considered: - ANS-- notifications, and not reports In a personal property appraisal assignment that includes multiple objects as part of the same assignment: - ANS--The objects that are more significant to the assignment results should be the focus of the analysis When appraising personal property, the appraiser must analyze prior sales of the subject over what time period? - ANS--a reasonable and applicable time An appraiser must recognize that there are distinct levels of trade in personal property, and each may have different comparable data. - ANS-- true
