uspap 2

In order to determine the appropriate scope of work, the appraiser must the problem to be solved.

Identify

Appraisers have broad _ and significant _ in determining the appropriate scope of work in an assignment.

Flexibility, responsibility

The credibility of assignment results is measured in the context of

The intended use

Which Foundation board is responsible for USPAP?

Appraisal Standards Board (ASB)

The Appraisal Foundation has the authority to enforce the requirements of USPAP.

False

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

Which in tight city is responsible for establishing education and experience requirements for licensing and certification of appraisers?

Appraiser Qualifications Board (AQB)

Qualification criteria for appraiser certification and recertification are disseminated to State Appraisal boards by the:

Appraiser Qualifications Board (AQB)

Which entitles the appoints members of the AQB and ASB?

Board of Trustees (BOT)

USPAP is written, amended, and interpreted by the:

Appraisal Standards Board (ASB)

Advisory Opinion are best described as

not part of USPAP, but included as references material

USPAP is enforced by:

State appraiser licensing/certification agencies

Which entity maintains the official National Registry of state certified and license appraisers?

Appraisal Subcommittee (ASC)

Who is responsible for issuing credentials to individual appraisers?

State appraisal regulatory agencies

Which is NOT a responsibility of the Appraisal Subcommittee (ASC)?

Writing, interpreting, and amending USPAP

Why are USPAP Advisory Opinions issued?

offer advice

Which of these is considered an integral part of USPAP and has the same weight as the components the address?

Comments

Which part of USPAP establishes the requirements for workfile content for an appraisal or appraisal review assignment?

RECORD KEEPING RULE

When obligated by law or regulation, an appraiser _ comply with USPAP.

must

The PREAMBLE states that USPAP intended to benefit:

Appraisers and users of appraisal services

To which property types does USPAP apply?

Both tangible and intangible property

What is the stated purpose of USPAP?

Promote and maintain a high level of public trust in appraisal practice

An appraiser has the professional responsibility to identify the capacity in which performing.

True

The requirement for USPAP compliance in an appraisal assignment could be the result of:

Any of these answers (agreement with the client, voluntary choice by the appraiser, law or regulation)

USPAP States that in a situation when an individual is not required by law, regulation, or agreement to comply with USPAP:

The individual should still comply when he or she is acting as an appraiser

A valuation service that is premised upon advocacy:

It cannot 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.

mislead

A preference or inclination that precludes an appraiser's impartiality, independence, or objectivity is:

bias

An appraiser is permitted to be biased when performing an appraisal, as long as the bias is properly disclosed.

False

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

if an appraiser assumes the condition to be true, and evidence supports that belief, although that fact is not certain, this is an example of:

An extraordinary assumption

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:

Cost

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 the for fire represent?

Price

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?

appraiser

An attended user is:

A party who is identified by the appraiser based on communication with a client at the time of the assignment

A work file 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

Which is the broader category of services?

valuation services

In USPAP, each Standard is composed of:

Standards Rules

"The type and extent of research and analysis in an appraisal or appraisal review assignment" is the definition of _.

Scope of work

"The monetary relationship between properties and those who buy, sell or use those properties" is the definition of:

Value

In appraisal practice, advocating the cause or interest of any party or issue is:

Not permitted

The ethical obligations of USPAP apply to:

Individual appraisers

Bias is permitted in an appraisal as long as the bias is clearly disclosed to the report.

False

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 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

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

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

In most cases, an appraiser may share __ from an appraisal assignment with other appraisers without obtaining the client's consent.

physical characteristics

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?

No, a true copy must include a signature

Is an appraiser permitted by USPAP to create a workfile after transmitting the report to the client?

No

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?

April 2024

Which statement best describes the word "competency" as it relates to appraisal practice?

It 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:

Disclose to the client, prior to agreeing to perform the assignment, the lack of knowledge or experience

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 Laxton knowledge and experience?

Use a hypothetical condition to complete the assignment as though the appraiser already had the knowledge and experience

Three appraisers work together on appraisal assignment. What would NOT be an appropriate work file arrangement under USPAP?

The work file 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:

All appraisers, regardless of credential level

Examples of assignment conditions include:

All of these answers (extraordinary assumptions, laws and regulations, hypothetical conditions)

Identification of the intended use of an appraiser's opinions and conclusions is:

Necessary for determining the appropriate scope of work

Intended use is:

Identified by the appraiser on the basis of communication with the client

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

The SCOPE OF WORK RULE provides appraisers with significant flexibility. Along with that flexibility comes:

responsibility

If a client's objectives result in an appraiser developing biased assignment results:

The appraiser is solely responsible

An appraiser's peers are defined as other appraisers who:

Have expertise and competency in a similar type of assignment

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

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

When a law or regulation precludes compliance with any part of USPAP, appraisers must:

Comply with that law or regulation

If USPAP compliance is mandated by federal law, no state or local law can create a jurisdictional exception.

True

What is the purpose of the JURISDICTIONAL EXCEPTION RULE?

To provide a saving or severability clause to preserve the balance of USPAP

As used in the JURISDICTIONAL EXCEPTION RULE, the term "law" includes .

All of these answers (court-made laws, legislative laws, administrative rules and ordinances)

The use of the JURISDICTIONAL EXCEPTION RULE in an assignment is a matter of choice by an appraiser

False

Is it permissible to use instructions from an attorney as a basis for a jurisdictional exception?

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 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 statement is FALSE regarding STANDARD 1

It covers real and personal property appraisal development.

The requirements of STANDARD 1 can be used as a checklist by an appraiser who is developing a real property appraisal.

True

If a mortgage borrower receives a copy of an appraisal report from a mortgage lender as a result of disclosure requirements:

This does not make the borrower an intended user

When does a series of minor errors potentially result in a USPAP violation?

When the series of errors affects the credibility of the results

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?

Omit the client's identity from the report but document the client's identity in the workfile.

Exposure time is:

An opinion developed by an appraiser

Which statement is TRUE regarding exposure time?

It is always assumed to precede the effective date of the appraisal.

What is the primary purpose of an appraiser making an inspection of the subject property?

To collect information about characteristics that are relevant to value

An example of a relevant property characteristic that could affect a real property appraisal assignment would be:

The fact that the subject property is affected by an easement

When appraising a property with proposed improvements, what type of value opinion is permitted by USPAP?

Both current and prospective values

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 the scope of work to the extent that the value opinion is not credible, Precludes an appraiser's impartiality, Limits report content, resulting in a misleading report (ALL of the answers listed)