National USPAP Course Exam

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)

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 has the professional responsibility to identify the capacity in which he or she is performing.

true

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

law or regulation, voluntary choice by the appraiser, or agreement with the client

A valuation service that is premised upon advocacy:

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

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

bias

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:

an 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:

hypothetical 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:

cost

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

value

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?

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?

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. 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

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

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

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

the 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:

all appraisers, regardless of credential level

The credibility of assignment results is measured in the context of:

the intended use

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, responsibilities

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

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

true

What is false regarding Standard 1?

it 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?

Omit 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:

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

Exposure time is:

an opinion developed by an appraiser

What is true regarding exposure time?

It 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?

both current and prospective values

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

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

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