Chapter 1 Quiz

Question 1

Paramount within USPAP is an appraiser’s obligation to promote and preserve

a. adequate compensation for appraisers.
b. appraisal as an honorable profession.
c. his right to advocate for his client.
d. public trust in appraisal practice.

Answer 1

d. public trust in appraisal practice.

Question 2

The Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) recognizes which as the
current industry standards for appraisals?

a. appraisal organizations
b. Fannie Mae
c. state regulatory agencies
d. USPAP

Answer 2

d. USPAP

Question 3

The act or process limited to the development of an opinion regarding the quality of another appraiser’s
work is an

a. appraisal review.
b. appraisal within an appraisal review.
c. example of advocacy within appraisal practice.
d. unacceptable appraisal practice.

Answer 3

a. appraisal review.

Question 4

Within the definition of an appraiser, which is NOT one of the expectations of an appraiser’s performance?

a. advocacy
b. impartiality
c. independence
d. objectivity

Answer 4

a. advocacy

Question 5

The appraisal process begins with problem identification and concludes with

a. compensating the appraiser.
b. determining the appropriate scope of work.
c. reconciliation of the appraiser’s conclusions.
d. reporting of the appraiser’s conclusions.

Answer 5

d. reporting of the appraiser’s conclusions.

Question 6

Which is required in order to establish a person or entity as the appraiser’s client in an assignment?

a. employment contract signed by all parties
b. engagement of the appraiser’s services
c. exchange of confidential information
d. payment for the appraiser’s services

Answer 6

b. engagement of the appraiser’s services

Question 7

At what point in an assignment must other intended users be identified by the client?

a. anytime during or after the conclusion of the appraisal process
b. at the time of the assignment
c. during the scope of work decision
d. within a reasonable time after completion

Answer 7

b. at the time of the assignment

Question 8

The scope of work in an assignment must include the research and analysis necessary to produce ____________ results.

a. conclusive
b. credible
c. indisputable
d. reasonable

Answer 8

b. credible

Question 9

When an individual offers both appraisal and real estate brokerage services, which statement is TRUE
in circumstances when he is acting as a real estate broker?

a. The appraiser is acting contrary to the ETHICS RULE of USPAP.
b. He can perform in that capacity provided he does not misrepresent his role.
c. He must always choose to act in the role of an appraiser when providing any valuation service.
d. Regardless, the service would be considered appraisal practice.

Answer 9

b. He can perform in that capacity provided he does not misrepresent his role.

Question 10

Which is an obligation of the COMPETENCY RULE of USPAP?

a. decline all assignments for which the appraiser does not initially possess competency
b. disclose the lack of competency to the client prior to agreeing to perform the assignment
c. keep the lack of knowledge and experience confidential in the appraisal report
d. refer the assignment to an appraiser who possesses competency

Answer 10

b. disclose the lack of competency to the client prior to agreeing to perform the assignment