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USPAP EXAM 2025 LATEST QUESTIONS AND CORRECT
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Financial chaos began in the US during the - CORRECT ANSWER 1929 stock market crash after the great depression In the 1950s-70s double continued with - CORRECT ANSWER
- Works related areas
- Property taxation
- Federal housing programs 1990s trouble was because of... - CORRECT ANSWER Mortgage scams and illegal house flipping. 1980s trouble was because of... - CORRECT ANSWER the Savings and Loans Crisis 1990s to 2000s trouble was from... - CORRECT ANSWER identity theft and appraisal report tampering. Prior to 1930s, appeasing properties could be done by... - CORRECT ANSWER mortgage brokers and real estate agents In the wake of the stock market crash and economic depression the first.... - CORRECT ANSWER group of appraisers were formed Issues recognized by new professional appraisers - CORRECT ANSWER - Provide credible services
- Have services provided by ethical and competent individuals
- Foster public trust Ad-hoc Committee - CORRECT ANSWER Eventually became USPAP
- find market value
- develop independent authority TAF - CORRECT ANSWER The Appraisal Foundation Three boards on TAF - CORRECT ANSWER - The Appraiser Qualifications Board
- The Appraisal Standards Board
- The Board of Trustees USPAP has no legal authority but... - CORRECT ANSWER NYS enforces it! Congress contributed to USPAPs acceptance by... - CORRECT ANSWER identifying it as the generally accepted set of standard practices for the profession. Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) provided... - CORRECT ANSWER Recognition and authorized federal institutions to reference USPAP Uniform Relocation Assistance and Real Properties Acquisition
- International sponsors (non-profit based outside of US with valuation interest) TAF Advisory Councils - CORRECT ANSWER The appraisal foundation advisory council (has non-profit organizations)
- The inducts advisory council (has for profit organizations) The board of Trustees- 3 functions - CORRECT ANSWER 1) Appoints members to its independent boards
- Secures funding for TAF operations
- Monitors performance and oversight of TAF and its boards and Advisory Councils "Valuation Advisories" - CORRECT ANSWER Means to identify issues and give guidance. Board also gives written, visual and audio information. Appraiser Qualifications Board Functions - CORRECT ANSWER
- Establishes minimum education, experience, and other criteria for verification of appraisers and supervisors.
- Defines, issues, and promotes qualification criteria
- Teaches qualification criteria to states, gov. and others
- Creates Licensing and Certification Exams
- Responsible for USPAP courses The Appraisal Standards Board- Functions - CORRECT ANSWER - Revises and promotes USPAP
- Responsible for the subject, content, and substance of USPAP
- Establishes standards of professional appraisal practice The Appraisal Subcommittee- Functions - CORRECT ANSWER Created as a result of FIRREA (Financial Institutions Reform, Recovery and Information Act.)
- Supervises agencies and appraisers and insures government has enough controls in all real estate activity to protect federally regulated financial institutions from loss. What does the Preamble contain - CORRECT ANSWER - The overall purpose and strict of USPAP Bias - CORRECT ANSWER A preference or inclination that precludes an appraiser's impartiality, independence, or objectivity in an assignment Extraordinary Assumption - CORRECT ANSWER Involves a situation directly related to a specific assignment as of the effective date of the assignment results.
- If an appraiser did not inspect the interior of a property, the appraiser might use as extraordinary assumption to produce
improvements for a property. Price- Fact or Opinion - CORRECT ANSWER Becomes fact once stated!
- An appraiser can estimate the price a homeowner should list a property for, but once it is stated by the owner it becomes fact! Value- Fact or Opinion - CORRECT ANSWER Always an opinion! Client definition - CORRECT ANSWER The party who engaged, by employment or contract, an appraiser in a specific assignment.
- Can be an individual, group, or entity.
- Can contact appraiser individually or through an agent. Assignment conditions are... - CORRECT ANSWER Assumptions, extraordinary assumptions, hypothetical conditions, laws and regulations, jurisdictional exceptions, and other conditions that affect the scape of work. Assignment Laws include... - CORRECT ANSWER constitutions, legislative and court-made law, administrative rues and ordinances. The regulations include rules or orders having legal force issued by an administrative. Assignment conditions are addressed both in... - CORRECT ANSWER Scope of Work and the development standards
An assignment is a... - CORRECT ANSWER Valuation service that is provided by an appraiser as a consequence of an agreement with a client. Assignment results are... - CORRECT ANSWER The appraisers opinions and conditions made by a specific assignment. Assignment results are NOT - CORRECT ANSWER Physical Characteristics Intended Use- - CORRECT ANSWER Is critical to the scope of work decision.
- Determined after talking with the client AT TIME OF THE ASSIGNMENT Intended User - CORRECT ANSWER Is the client and any other party identified as users by the appraiser.
- Also determined after talking with the client AT TIME OF THE ASSIGNMENT An appraiser's report is either... - CORRECT ANSWER Written or given orally. An appraisers signature is... - CORRECT ANSWER Personalized evidence that authenticated the appraiser has performed and is deposable for the contents of the report.
Services performed by an individual acting as an appraiser - CORRECT ANSWER Appraisal Practice Documents that support an appraisers conclusions - CORRECT ANSWER Workfile Presumes as fact otherwise uncertain information - CORRECT ANSWER Extraordinary Assumption A preference that precludes an appraisers impartiality - CORRECT ANSWER Bias The amount asked, offered or paid for a property - CORRECT ANSWER Price Services pertaining to aspects of property value - CORRECT ANSWER Valuation Servises The act or process of developing an opinion of value - CORRECT ANSWER Appraisal An opinion that expresses an economic concept - CORRECT ANSWER Value The preamble identifies... - CORRECT ANSWER The purpose of USPAP
What is the purpose of USPAP? - CORRECT ANSWER - To maintain high levels of public trust in professional appraisal practice
- To establish minimum requirements for professional appraisal practice. Who benefits from USPAP? - CORRECT ANSWER - Providers of Appraisal Services
- Users of Appraisal Services An individual must comply with USPAP when required by... - CORRECT ANSWER Law, Regulation, Agreement (with a client or other user) What appraisal services are covered by USPAP? - CORRECT ANSWER - Appraisals
- Appraisal Review
- Any other services choosing to represent as "appraiser" What property types are covered by USPAP? - CORRECT ANSWER Tangible and Intangible Valuation Services pertain to... - CORRECT ANSWER Anyone evaluating a property. Could be appriser or even Real Estate brokers Appraisal Practises pertain to... - CORRECT ANSWER Only
USPAP obligations for Valuation services performed by an individual outside of appeals practice. - CORRECT ANSWER An individual who acts in other professional roles such as attorneys, accountants, brokers etc. Must insure they are not misleading clients when acting in other roles. Valuation service performed by an individual acting in the role of an appraser - CORRECT ANSWER Appraisal Practice When performing valuation services outside of appraisal practice, appraisers must be careful not to... - CORRECT ANSWER mislead clients about their intended roles. For assignments other than appraisal and appraisal review, there are no... - CORRECT ANSWER Record Keeping or scope of work requirements in USPAP What appraisal services are covered by USPAP? - CORRECT ANSWER Appraisal, Appraisal Review, Any other services choosing to represent as "appraiser. Appraisal practice is a ________________ of the broader concept of valuation services. - CORRECT ANSWER Subset! General Conduct: An appraiser must - CORRECT ANSWER - Perform ethically and competently
- Work in accordance to USPAP
- Not engage in criminal conduct
- Not willingly or knowingly violate the requirements of the Record
Keeping Rule Development Issues- An appraiser must - CORRECT ANSWER
- Perform with impartiality, objectivity and independence without personal interest
- Not perform with bias
- Not advocate cause or interest in any party
- Not accept assignments that come with predetermined conclusions
- Not misrepresent his role
- Not rely on unsupported conclusions relating to race, color religion, national origin, gender, material status, etc.
- Not perform in a neglegent manner Communications/reporting issues- An appraiser must not... - CORRECT ANSWER - Communicate assignment results with intent to mislead
- Use or communicate a report knowing its wrong
- Knowingly let someone else communicate a report that is misleading If any party has interest in an assignment they must... - CORRECT ANSWER Disclose to the client. If an appraiser has appraised a home within ____ years they must
not... - CORRECT ANSWER Required for the disclosure of remaining information. Physical characteristics are NOT... - CORRECT ANSWER Assignment results. This distinction enables an appraiser to share information (but not opinions) regarding physical characteristics with other appraisers without violating confidentiality. An appraiser must safeguard information by... - CORRECT ANSWER Telling others about the confidentiality, and using both physical and electronic forms. An appraiser must prepare a work file for... - CORRECT ANSWER Each appraisal! A work file must be in existence __________ to the issuance of any report or other communication of assignment results. - CORRECT ANSWER PRIOR! AKA Before! If an oral report is given... - CORRECT ANSWER It must be added to the work file within a reasonable amount of time. A workfile must include... - CORRECT ANSWER - The name of the client and all intended users
- A "True copy"
- Summaries of all oral reports
- All data and proof needed to support opinions and conclusions
- A work file in support of "restricted appraisal report" or oral report! One must save a work file for... - CORRECT ANSWER 5 years after creation, or 2 years after final disposition of any judicial proceeding in which the appraiser gave testimony. WHICHEVER EXPIRES LAST! An appraiser must make appropriate custody arrangements for the work file with all those that may need access to it. They include... - CORRECT ANSWER - State regulatory agencies
- Compliance with due process law
- Other duly authorized professionals
- Ex-peers Failure to comply with record keeping rules violate... - CORRECT ANSWER Ethics Rules! Competency requirements... - CORRECT ANSWER - The ability to property identity the problem to be addressed.
- The knowledge and experience to complete the assignment
- Ability to comply with laws and regulations. If an appraiser determines they are not competent... - CORRECT ANSWER - They must disclose that lack on knowledge before accepting the assignment
- The type and extent of analysis applied to create opinions and conclusions. Appraisers have _______________ _______________ and _______________ _______________ in determining the appropriate scope of work in an assignment. - CORRECT ANSWER Broad flexibility, significant responsibility. Credible assignment results require... - CORRECT ANSWER Relevant evedence and logic Things that Scope of Work, works to identify - CORRECT ANSWER - The client and other intended users
- Intended use of the appraisers opinions and conclusions
- Type and definition of value
- Effective date of the appraisers onions and conclusions
- Subject of the assignment and its relevant characteristics
- Assignment conditions Assignment conditions include: - CORRECT ANSWER - Assumptions
- Extraordinary assumptions
- Hypothetical conditions
- Law and regulations
- Jurisdictional exceptions
- Other conditions that affect the scope of work
If scope of work can not be found... - CORRECT ANSWER - The appraiser must withdraw from the assignment.
- Modify assignment conditions to expand options.
- Use an extraordinary assumption. In an assignment, the scope of work is... - CORRECT ANSWER On-going In order to determine the appropriate scope of work, the appraiser must... - CORRECT ANSWER Identify the problem to be solved. An appraiser must not allow client objectives to create... - CORRECT ANSWER Bias on the assignment results. Appraisers have broad ____________ and significant ________________ in determining the appropriate scope of work in an assignment - CORRECT ANSWER Flexibility, responsibility An appraisers report must contain _____________________ to allow intended users to understand the scope of the work performed. - CORRECT ANSWER Sufficient information Scope of work disclosures - CORRECT ANSWER One must report sufficient information to allow intended users to understand work.
- Disclosure reach and analysis performed
