Chapter 2 Preamble and When USPAP Applies Flashcards
Appraisal practice is part of valuation services and is provided only by`
appraisers
The PREAMBLE identifies the purpose of USPAP:
To promote and maintain a high level of public trust in professional appraisal practice
To establish minimum requirements for professional appraisal practice
The PREAMBLE also states that USPAP is intended to benefit:
Providers of appraisal services (appraisers); and
Users of appraisal services
Compliance with USPAP is required when either the service or the appraiser is obligated to comply by:
Law
Regulation
Agreement with the client or other intended users
Even when not _________ to comply, an individual may still ________ to comply.
obligated, choose
USPAP addresses the ethical and performance obligations of appraisers through
DEFINITIONS, Rules, Standards, and Standards Rules.
The PREAMBLE also establishes what appraisal services are covered by USPAP:
Appraisal
Appraisal review
Other services when choosing to represent oneself as an appraiser
USPAP covers _________ property (both real and personal property) and _________ property (business interests and others).
tangible, intangible
An individual must comply with USPAP when required by
law, regulation, or agreement (with the client or other intended users).
What is the stated purpose of USPAP?
Establish a federal appraisal enforcement agency
Establish requirements that licensed and certified appraisers must follow
Promote and maintain a high level of public trust in appraisal practice
Create requirements so stringent that no appraiser can possibly comply with them
Promote and maintain a high level of public trust in appraisal practice
When obligated by law or regulation, an appraiser \_\_\_\_\_\_\_ comply with USPAP. Need not Must May choose to Should
Must
To which property types does USPAP apply?
Intangible property only
Tangible property only
None of these answers
Both tangible and intangible property
Both tangible and intagible property
The PREAMBLE states that USPAP intended to benefit:
Users of appraisal services only
Appraisers only
Appraisers and users of appraisal services
Borrowers in mortgage-lending appraisal assignments
Appraisers and users of appraisal services
a service pertaining to an aspect of property value, regardless of the type of service and whether it is performed by appraisers or by others.
Valuation service
valuation services performed by an individual acting as an appraiser including, but not limited to appraisal or appraisal review.
Appraisal Practice
Acting as an appraiser or performing a service “as an appraiser” means:
Representing oneself as an appraiser
An expectation of appraisal competence in the service being provided
An expectation for an individual to act as an appraiser indicates an obligation to comply with USPAP to:
Maintain public trust
Provide services in a manner consistent with the definition of “Appraiser”
Meet expectations of clients and other intended users when an appraiser is identified
An individual who, at least part of the time, performs as an appraiser has three essential responsibilities regarding user expectations:
Identify the capacity in which he or she is performing, and inquire about the intended users’ expectations.
When performing services outside appraisal practice, individuals must not misrepresent themselves.
An individual, when given the opportunity, can choose to provide a valuation service as an appraiser or in some other capacity, but must use great care not to violate public trust.
Examples of services provided by an appraiser that are included in appraisal practice but have no specific performance standards include:
Providing sales data for a general type of property (not a specific property)
Measuring services (e.g., measuring the gross living area of a residence)
Writing an article about market grid adjustment techniques
Verifying zoning issues and potential uses of a property
Analyzing specific elements of value, such as reproduction cost or functional utility
The requirement for USPAP compliance in an appraisal assignment could be the result of:
Agreement with the client
Any of these answers
Voluntary choice by the appraiser
Law or regulation
any of these answers
An appraiser has the professional responsibility to identify the capacity in which he or she is performing.
True
False
True
Advisory Opinion 21 is titled
USPAP Compliance
A valuation service that is premised upon advocacy:
Must be performed under the SCOPE OF WORK RULE
Is an appraisal review assignment under STANDARDS 3 and 4
It cannot be performed by an individual acting as an appraiser
Can be performed by an individual acting as an appraiser with appropriate disclosure
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.
Communicate with
Identify
Mislead
Mislead
USPAP states that in a situation when an individual is not required by law, regulation, or agreement to comply with USPAP:
Compliance does not matter because clients do not understand USPAP
The individual should comply only if the service involves real property
The individual should still comply when he or she is acting as an appraiser
The Appraisal Foundation can still force compliance
The individual should still comply when he or she is acting as an appraiser
