Chapter 12 Flashcards
Which of the following statements BEST describes Advisory Opinions?
They are not part of USPAP but illustrate applicability and provide guidance.
They provide interpretation of USPAP requirements and are intended to be enforceable.
They establish supplemental standards that build upon STANDARDS 1 through 10.
They are part of USPAP, and they are the ASB’s way of addressing changes in the appraisal marketplace.
They are not part of Uspap but illustrate applicability and provide guidance
An appraisal that takes into consideration the full effect of known environmental contamination would be considered: "As-is" Extraordinary assumption Hypothetical condition Subject to remediation
“As-is”
The competency required to appraise subsidized housing extends beyond typical residential appraisal competency.
True
False
True
In an appraisal report, the use of terms that reflect a scale such as “good” or “average”:
Is a violation of USPAP
Is illegally discriminatory, but does not violate USPAP
Involves the use of an extraordinary assumption
Should include explanation that provides context
Should include explanation that provides context
An appraiser agrees to provide a market value appraisal for a client. Which statement is true about this situation?
It is essential that the appraiser identify the source of the definition of value to be used.
All market value definitions are essentially the same; hence they are all interchangeable.
There is only one definition of market value so it is not important to identify the definition of value to be used.
Market value is the only type of value that appraisers provide, so defining the value is unnecessary.
It is essential that the appraiser identify the source of the definition of value to be used
An appraiser provides raw AVM output to a client. This is:
Not an appraisal; however, a workfile is required by USPAP
Not an appraisal, and no workfile is required
A violation of the ETHICS RULE
An appraisal under STANDARDS 1 and 2
Not an appraisal, and no workfile is required
If a borrower attempts to engage an appraiser to complete an appraisal for a federally-regulated lending transaction, the appraiser should disclose:
That the lender must engage the appraiser, and that the appraiser cannot later “readdress” the report
That the appraiser is too busy to perform an assignment for a borrower as the client
That the lender must directly engage the appraiser, and that the report can only be readdressed with express written permission from the lender
That the borrower is permitted to order the appraisal, and that the appraiser may later “readdress” the report, if needed
That the lender must engage the appraiser, and that the appraiser cannot later “readdress” the report
Regulations and guidelines that apply to an appraisal for a federally-regulated lending transaction are: Assignment conditions Hypothetical conditions Limiting conditions Jurisdictional exceptions
Assignment Conditions
What type of appraisal would be indicated by the phrase, “On September 10, 2012, the market value of the subject property was $200,000”? Retrospective Concurrent Prospective Current
Retrospective
According to AO-33, the results of discounted cash flow (DCF) analysis should:
Be tested and checked for errors and reasonableness
Not be included in appraisal report
Be expressed as a single-point value conclusion
Not be referred to as an appraisal
Be tested and checked for errors and reasonableness
What does the effective date of an appraisal establish?
The date the certification statement was signed
The date upon which the report was prepared
The context of the value opinion
The approximate date the appraiser can expect payment
The context of the value of opinion
Developing an opinion of value of a property as of a specified future date is: A prospective appraisal The most common type of appraisal A retrospective appraisal Not permissible under USPAP
A prospective Appraisal
