Final Exam

Question 1

After an appraiser completes an appraisal review, his client contacts him and wants to add an additional intended user. Which statement is TRUE regarding this situation?

Answer 1

The appraiser may not retroactively add an intended user after the assignment has been completed.

Question 2

A newly-constructed commercial building is appraised at $900,000. This figure represents the property’s:

Answer 2

Value

Question 3

Why is it necessary for all reports prepared under USPAP to include a signed certification?

Answer 3

It serves as an appraiser’s acknowledgement of his or her ethical obligations

Question 4

While an appraiser is working on an appraisal assignment, she realizes that the property is more complex than she had originally thought, and she concludes that she does not possess the knowledge and experience to complete the assignment. If she wishes to complete the assignment, what is the FIRST thing that she must do as required by USPAP?

Answer 4

Notify the client of her lack of knowledge and experience.

Question 5

An appraiser’s workfile must be in existence:

Answer 5

Prior to the transmission of a report or other communication of assignment results

Question 6

USPAP Advisory Opinions are issued to:

Answer 6

Illustrate applicability of existing standards

Question 7

“Levels of trade” is a market reference in:

Answer 7

Personal property appraising

Question 8

When an appraiser has provided a prior service regarding the subject property, where does USPAP require this disclosure to appear in a written appraisal report?

Answer 8

Anywhere in the report, as long as the disclosure is prominent

Question 9

Jackie is both an appraiser and a real estate broker. What are her USPAP obligations when preparing listing presentations and comparative market analysis reports for her brokerage clients?

Answer 9

Not to misrepresent her role when providing valuation services

Question 10

Who is responsible if an inappropriate scope of work is used in an appraisal assignment?

Answer 10

The appraiser

Question 11

A property with known environmental contamination is appraised as though uncontaminated. This fact is clearly and accurately disclosed in the appraisal report. This is an example of:

Answer 11

A hypothetical condition

Question 12

Which statement is TRUE regarding an appraiser’s signature obligations?

Answer 12

An appraiser may authorize another person to sign a report for him or her on an individual assignment-by-assignment basis.

Question 13

An appraiser must prepare a workfile for:

Answer 13

All assignments that are part of appraisal practice

Question 14

Brenda is a certified appraiser, and she is assisted in an appraisal assignment by Gene, who does not sign the certification. Which statement is TRUE regarding the disclosure of Gene’s assistance in the Appraisal Report that was prepared?

Answer 14

Gene’s name must appear in the certification, but it is not required that the extent of his assistance be stated in the report.

Question 15

An appraiser uses a published cost manual to determine that the construction cost of a 2,100 square foot residential dwelling is $450,000. This figure represents the dwelling’s

Answer 15

Cost

Question 16

A written business appraisal report must be prepared in accordance with which of the following options?

Answer 16

Appraisal Report or Restricted Appraisal Report

Question 17

Confidential information under USPAP is information the appraiser receives from:

Answer 17

The client, is identified by the client as confidential, and is not available from other sources

Question 18

Which entity is responsible for writing, amending, and interpreting USPAP?

Answer 18

Appraisal Standards Board (ASB)

Question 19

A general certified appraiser is writing an article for a professional journal about the effects of indoor air pollution on property values. This activity would be considered:

Answer 19

An activity which would not require USPAP compliance

Question 20

Which of these is an opinion?

Answer 20

Value