Chapter 6 - Jurisdictional Exception Rule Flashcards
If USPAP compliance is mandated by federal law, no state or local law can create a jurisdictional exception.
True
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
When a law or regulation precludes compliance with any part of USPAP, appraisers must:
Comply with that law or regulation
What is the purpose of the JURISDICTIONAL EXCEPTION RULE?
To provide a saving or severability clause to preserve the balance of USPAP
The use of the JURISDICTIONAL EXCEPTION RULE in an assignment is a matter of choice by an appraiser.
False
Is it permissible to use instructions from an attorney as a basis for a jurisdictional exception?
No - Only a law or regulation can establish a jurisdictional exception.
As used in the JURISDICTIONAL EXCEPTION RULE, the term “law” includes ____________.
- Court-made laws
- Administrative rules and ordinances
- Legislative laws
All of these answers
An appraiser was recently hired to perform an appraisal assignment for a government agency. The agency has a regulation that requires the appraiser to provide the appraisal report to other government agencies if requested. Does this regulation create a jurisdictional exception to the Confidentiality section of the ETHICS RULE?
No. The confidentiality section of the ETHICS RULE states that parties specifically authorized by client & third parties as may be authorized by due process of law are acceptable to disclose information with.
A state passes a law requiring appraisers to keep their workfiles for 10 years after preparation. Is this a jurisdictional exception under USPAP?
No - Does not preclude an appraiser from complying with USPAP
When does a jurisdictional exception occur in an assignment?
It is automatic when a law precludes compliance with a part of USPAP
Which of these would be considered an example of a jurisdictional exception in an appraisal assignment?
- A probate court paying appraisers based on the value of the subject property
- A client requesting a specific definition of value
- An attorney asking an appraiser not to analyze the prior sales history of the subject property
- State regulations requiring appraisers to keep workfiles for six years
A probate court paying appraisers based on the value of the subject property