Chapter 3 Definitions Flashcards
USPAP definitions have __________ meanings in the context of their USPAP document use
different
a preference or precludes an appraiser’s impartiality, independence or objectivity in an assignment.
bias
A preference or inclination that precludes an appraiser's impartiality, independence, or objectivity is: Bias Assumption Appraisal practice Market value
Bias
An appraiser is permitted to be biased when performing an appraisal, as long as the bias is properly disclosed.
True
False
False
something that is taken to be true.
assumption
an assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions and conclusions.
Extraordianry Assumption
A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis.
Hypothetical Condition
If an appraiser assumes a condition to be true that does not exist for the purposes of analysis, this is an example of:
A hypothetical condition
A limiting condition
An extraordinary assumption
An assumption
hypothetical condition
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: A hypothetical condition An extraordinary assumption An assignment condition A limiting condition
extraordinary assumption
an opinion, based on supporting market data, of the length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal.
exposure time
the actual or estimated amount required to create, reproduce, replace or obtain a property.
cost
the amount asked, offered, or paid for a property.
price
the monetary relationship between properties and those who buy, sell or use those properties, expressed as an opinion of the worth of a property at a given time.
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?
Cost
Price
Value
Price
“The monetary relationship between properties and those who buy, sell or use those properties” is the definition of: Value None of these Price Cost
Value
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:
Value
Price
Cost
Cost
one who is expected to perform valuation services competently and in a manner that is independent, impartial, and objective.
Appraiser
the party or parties (i.e., individual, group, or entity) who engage an appraiser by employment or contract in a specific assignment, whether directly or through an agent.
Client
Assumptions, extraordinary assumptions, hypothetical conditions, laws and regulations, jurisdictional exceptions, and other conditions that affect the scope of work.
Assignment Conditions
A valuation service that is provided by an appraiser as a consequence of an agreement with a client.
Assignment
An appraiser’s opinions or conclusions, not limited to value, that were developed when performing an appraisal assignment, an appraisal review assignment, or a valuation service other than an appraisal or appraisal review.
Assignment results
According to USPAP, the party or parties who engage an appraiser in a specific assignment defines the: Party who pays the fee Other intended users Client Appraiser's peers
Client
It is permissible for an appraiser to be engaged in an assignment by an agent, who is acting on behalf of the client.
False
True
True
An appraiser performs an appraisal assignment and develops an opinion of value. This value opinion is
a fact
an estimate of fact
an assignment result
An assignment result
the use(s) of an appraiser’s reported appraisal or appraisal review assignment results, as identified by the appraiser based on communication with the client at the time of the assignment.
Intended Use
the client and any other party as identified, by name or type, as users of the appraisal or appraisal review report by the appraiser, based on communication with the client at the time of the assignment.
Intended user
An intended user is:
Anyone who uses the appraisal report
A party who is identified by the appraiser based on communication with the client at the time of the assignment
Anyone who receives the appraisal report from the client
Only the party who pays for the appraisal report
A party who is identified by the appraiser based on communication with the client at the time of the assignment
Who is responsible for making the identification of the intended use in an assignment? The client The Appraisal Standards Board The appraiser The intended users themselves
The appraiser
any communication, written or oral, of an appraisal or appraisal review that is transmitted to the client or a party authorized by the client upon completion of an assignment.
report
personalized evidence indicating authentication of the work performed by the appraiser and the acceptance of the responsibility for content, analyses, and the conclusions in the report.
Signature
data, information, and documentation necessary to support the appraiser’s opinions and conclusions and to show compliance with USPAP.
Workfile
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.
Valutation Service
valuation services performed by an individual acting as an appraiser, including but not limited to appraisal and appraisal review.
Appraisal Practice
the act or process of developing an opinion of value; an opinion of value; (adjective) of or pertaining to appraising and related functions such as appraisal practice or appraisal services.
Appraisal
the act or process of developing and communicating an opinion about the quality of another appraiser’s work (i.e., a report, part of a report, a workfile, or some combination of these) that was performed as part of an appraisal, appraisal review, or appraisal consulting assignment; (adjective) of or pertaining to an opinion about the quality of another appraiser’s work that was performed as part of an appraisal or appraisal review assignment.
Appraisal Review
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?
An appraisal
A valuation service
Not an appraisal, but still part of appraisal practice
A USPAP service
A valuation service
Which is the broader category of services?
Appraisal Practice
Valuation Services
Valuation services
Appraisal practice includes only:
Market value appraisals
Work completed by licensed and certified appraisers
Appraisal and appraisal review
Valuation services provided by an individual acting as an appraiser
Valuation services provided by an individual acting as an appraiser
the type and extent of research and analyses in an appraisal or appraisal review assignment.
Scope of Work
"The type and extent of research and analyses in an appraisal or appraisal review assignment” is the definition of \_\_\_\_\_\_\_\_\_\_\_. Signature Report Intended use Scope of work
Scope of Work
In USPAP, each Standard is composed of: Standards Rules Statements on Appraisal Standards Practical advice Voluntary guidance
Standards Rules
