Chapter 2 Preamble and When USPAP Applies

Question 1

Appraisal practice is part of valuation services and is provided only by`

Answer 1

appraisers

Question 2

The PREAMBLE identifies the purpose of USPAP:

Answer 2

To promote and maintain a high level of public trust in professional appraisal practice
To establish minimum requirements for professional appraisal practice

Question 3

The PREAMBLE also states that USPAP is intended to benefit:

Answer 3

Providers of appraisal services (appraisers); and

Users of appraisal services

Question 4

Compliance with USPAP is required when either the service or the appraiser is obligated to comply by:

Answer 4

Law
Regulation
Agreement with the client or other intended users

Question 5

Even when not _________ to comply, an individual may still ________ to comply.

Answer 5

obligated, choose

Question 6

USPAP addresses the ethical and performance obligations of appraisers through

Answer 6

DEFINITIONS, Rules, Standards, and Standards Rules.

Question 7

The PREAMBLE also establishes what appraisal services are covered by USPAP:

Answer 7

Appraisal
Appraisal review
Other services when choosing to represent oneself as an appraiser

Question 8

USPAP covers _________ property (both real and personal property) and _________ property (business interests and others).

Answer 8

tangible, intangible

Question 9

An individual must comply with USPAP when required by

Answer 9

law, regulation, or agreement (with the client or other intended users).

Question 10

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

Answer 10

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

Question 11

When obligated by law or regulation, an appraiser \_\_\_\_\_\_\_ comply with USPAP.
Need not
Must
May choose to
Should

Answer 11

Must

Question 12

To which property types does USPAP apply?

Intangible property only
Tangible property only
None of these answers
Both tangible and intangible property

Answer 12

Both tangible and intagible property

Question 13

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

Answer 13

Appraisers and users of appraisal services

Question 14

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.

Answer 14

Valuation service

Question 15

valuation services performed by an individual acting as an appraiser including, but not limited to appraisal or appraisal review.

Answer 15

Appraisal Practice

Question 16

Acting as an appraiser or performing a service “as an appraiser” means:

Answer 16

Representing oneself as an appraiser

An expectation of appraisal competence in the service being provided

Question 17

An expectation for an individual to act as an appraiser indicates an obligation to comply with USPAP to:

Answer 17

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

Question 18

An individual who, at least part of the time, performs as an appraiser has three essential responsibilities regarding user expectations:

Answer 18

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.

Question 19

Examples of services provided by an appraiser that are included in appraisal practice but have no specific performance standards include:

Answer 19

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

Question 20

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

Answer 20

any of these answers

Question 21

An appraiser has the professional responsibility to identify the capacity in which he or she is performing.
True
False

Answer 21

True

Question 22

Advisory Opinion 21 is titled

Answer 22

USPAP Compliance

Question 23

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

Answer 23

It cannot be performed by an individual acting as an appraiser

Question 24

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

Answer 24

Mislead

Question 25

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

Answer 25

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