Chapter 8 - Standard 2

Question 1

The use of standard appraisal reporting forms is not required by which standard?

Answer 1

STANDARD 2

Question 2

STANDARD 2 sets forth requirements for

Answer 2

Appraisal report content

Question 3

The two written report options stated in Standards Rule 2-2 are

Answer 3

Appraisal Report and Restricted Appraisal Report

Question 4

What is the essential difference between the two reporting options?

Answer 4

The content and level of information

Question 5

Which of the following is NOT required by USPAP to be in an Appraisal Report?

• Client’s specific name
• Effective date of appraisal
• Name or type of other intended users
• Type and definition of value

Answer 5

Client’s specific name

Question 6

When reporting the results of an appraisal, dates that must be included are

Answer 6

Effective date and report date

Question 7

An appraiser’s client requests anonymity and asks that their identity not appear in the Appraisal Report that is prepared for the assignment. What must the appraiser do?

• All of these actions must be taken
• Document the identity of the client in the workfile
• State in the report that the client’s identity has been withheld at the client’s request
• Use care not to violate the Confidentiality section of the ETHICS RULE

Answer 7

All of these actions must be taken

Question 8

An appraiser determines that the cost approach is not necessary in an appraisal assignment, and therefore does not develop the approach. In the Restricted Appraisal Report for the assignment, what must the appraiser do?

Answer 8

State the reason for the exclusion of the approach

Question 9

In an Appraisal Report, the scope of work used to develop the appraisal must be

Answer 9

Summarized

Question 10

When an extraordinary assumption is used in an appraisal, the report must state the extraordinary assumption and

Answer 10

state that its use may have affected the assignment results

Question 11

All written appraisal reports must contain

Answer 11

a signed certification

Question 12

An appraiser is preparing a Restricted Appraisal Report in a situation where there are intended users in addition to the client. Which statement is true regarding this situation?

• The appraiser has violated USPAP by using a Restricted Appraisal Report in this situation.
• These additional intended users must be identified in the report by type.
• These additional intended users may be identified in the report by either name or type.
• These additional intended users must be identified in the report by name.

Answer 12

These additional intended users must be identified in the report by name.

Question 13

According to USPAP, any appraiser who signs any part of an appraisal report is required to

Answer 13

sign a certification

Question 14

Which of the following best describes bias in appraisal practice?

• It is not permitted
• It is acceptable if disclosed prior to accepting the assignment
• It is allowed, as long as it is disclosed in the report
• It is permitted in market analysis

Answer 14

It is not permitted

Question 15

What is the purpose of including a signed certification in an appraisal report?

Answer 15

For the appraiser to acknowledge his or her ethical obligations

Question 16

To the extent possible and appropriate, oral appraisal reports for real property must address the substantive matters that apply to a(n)

Answer 16

Appraisal Report

Question 17

An appraiser provides an oral report of a real property appraisal. Which statement is CORRECT?

• The appraiser has no USPAP reporting obligations because she provided an oral report.
• Because she gave an oral report, the appraiser does not have to sign a certification.
• The appraiser must send a written, signed, and dated certification to the client after she provides the oral report.
• The appraiser must add a signed and dated certification to her appraisal workfile.

Answer 17

The appraiser must add a signed and dated certification to her appraisal workfile.

Question 18

USPAP requires an appraiser to obtain a release from a previous client before appraising the same property for a new client.

Answer 18

False

Question 19

If a client requests a more current valuation on a property that was the subject of a prior assignment, this is a(n) ____________.

Answer 19

new assignment

Question 20

An appraiser completes an appraisal for Bank A. Two months later, he is contacted by Bank B, who asks him to “readdress” his prior report to them. Which statement is TRUE about the appraiser’s USPAP obligations?

• He is not permitted to “readdress” the report to Bank B
• He can “readdress” the report if he obtains permission from Bank A
• He can “readdress” the report only if the value and/or market conditions have not changed
• He is not permitted to do a new appraisal for Bank B because he appraised the same property for Bank A within the last three years

Answer 20

He is not permitted to “readdress” the report to Bank B.

Question 21

If a supervising appraiser makes changes to a trainee’s appraisal report which the trainee does not agree with, the trainee should

Answer 21

not sign the certification

Question 22

A trainee assisted a senior appraiser in an appraisal assignment, but the trainee appraiser does not sign a certification. The trainee’s name is stated in the certification as having provided significant appraisal assistance. Is a description of the trainee’s assistance also required to be in the certification?

Answer 22

No