Chapter 6 Jurisdictional Excepetion Rule

Question 1

An assignment condition established by applicable law or regulation, which precludes an appraiser from complying with a part of USPAP.

Answer 1

Jurisdictional exception

Question 2

If any applicable law or regulation precludes compliance with any part of USPAP, only that part of USPAP becomes void for that assignment.

Comment: When compliance with USPAP is required by federal law or regulation, no part of USPAP can be voided by a law or regulation of a state or local jurisdiction.

Answer 2

The Juridictional Exception Rule

Question 3

When a law or regulation precludes compliance with any part of USPAP, appraisers must:
Be allowed to take exception to the law or regulation
Ignore the law and adhere to USPAP
Comply with that law or regulation
Ignore USPAP entirely

Answer 3

Comply with that law or regulation

Question 4

What is the purpose of the JURISDICTIONAL EXCEPTION RULE?

To provide state appraisal regulatory agencies additional enforcement powers
To allow USPAP to preempt existing laws and regulations
To provide a saving or severability clause to preserve the balance of USPAP

Answer 4

To provide a saving or severability clause to preserve the balance of USPAP

Question 5

If USPAP compliance is mandated by federal law, no state or local law can create a jurisdictional exception.
False
True

Answer 5

True

Question 6

If an assignment involves a jurisdictional exception, what must an appraiser do?

Identify the law, comply with the law, disclose in the report the part of USPAP that is voided, and cite in the report the law that caused the jurisdictional exception
Include a copy of the applicable law or regulation as an addendum to the appraisal, appraisal review, or appraisal consulting report
Nothing; the law automatically supersedes USPAP and eliminates any need for disclosure

Answer 6

Identify the law, comply with the law, disclose in the report the part of USPAP that is voided, and cite in the report the law that caused the jurisdictional exception

Question 7

The use of the JURISDICTIONAL EXCEPTION RULE in an assignment is a matter of choice by an appraiser.
True
False

Answer 7

False

Question 8

Is it permissible to use instructions from an attorney as a basis for a jurisdictional exception?
Yes
No
USPAP does not specify

Answer 8

No

Question 9

As used in the JURISDICTIONAL EXCEPTION RULE, the term “law” includes \_\_\_\_\_\_\_\_\_\_\_\_.
All of these answers
Administrative rules and ordinances
Court-made laws
Legislative laws

Answer 9

All of these answers

Question 10

Which of these would be considered an example of a jurisdictional exception in an appraisal assignment?
A client requesting a specific definition of value
An attorney asking an appraiser not to analyze the prior sales history of the subject property
A probate court paying appraisers based on the value of the subject property
State regulations requiring appraisers to keep workfiles for six years

Answer 10

A probate court paying appraisers based on the value of the subject property

Question 11

When does a jurisdictional exception occur in an assignment?
It is automatic when a law precludes compliance with a part of USPAP
The state enforcement agency must approve of the exception to USPAP compliance
The client must invoke the Rule
The appraiser must invoke the Rule

Answer 11

It is automatic when a law precludes compliance with a part of USPAP

Question 12

A state passes a law requiring appraisers to keep their workfiles for 10 years after preparation. Is this a jurisdictional exception under USPAP?
No
USPAP does not specify
Yes

Answer 12

No

Question 13

Is it permissible to use instructions from an attorney as a basis for a jurisdictional exception?
Yes
USPAP does not specify
No

Answer 13

no