Module 20 Quiz

Question 1

An appraiser was unable to physically view all the apartment units in a building complex he was appraising. The appraiser had no reason to believe the condition of these units were any different from the units he
observed. What type of assignment condition should the appraiser disclose in his appraisal report to account for the information related to the unviewed units?

A. extraordinary assumption
B. special supposition
C. hypothetical condition
D. hypothetical assumption

Answer 1

A. extraordinary assumption

Note: An extraordinary assumption presumes as fact otherwise uncertain information about the property. A hypothetical condition presents a “what if” scenario when used for valuation purposes

Question 2

An extraordinary assumption is an element of the appraisal
A. that the appraiser believes to be obsolescence.
B. that is contrary to good real estate management.
C. that the appraiser believes to be false but was communicated by the client.
D. that the appraiser is uncertain about.

Answer 2

D. that the appraiser is uncertain about.

Question 3

Partners Bank had questions about an appraisal, so it decided to get a second opinion from another independent appraiser. What is this second assignment called?

A. real property consulting
B. appraisal
C. appraisal review
D. appraisal consulting

Answer 3

B. appraisal

This second appraisal is not a review because a new appraiser was asked to provide an opinion of value

Question 4

An appraisal is a process of developing an opinion of value.
True
False

Answer 4

True

Question 5

The act or process of developing an opinion about the quality of another’s work is called

A. appraisal consulting.
B. valuation services.
C. appraisal review.
D. appraisal practice.

Answer 5

C. appraisal review.

Question 6

What is the “subject” of an appraisal review assignment?

A. a tangible or intangible asset
B. a property
C. an appraiser
D. another appraiser’s work

Answer 6

D. another appraiser’s work

Question 7

An appraiser is assisting a property owner in a tax appeal of his hotel business. If the service requires advocacy for the client’s position, what must the appraiser do?

A. The appraiser may provide a review of another appraiser’s report on the owner’s property but cannot directly perform the appraisal used in the
appeal.

B. The appraiser cannot perform any service that involves advocacy while in the role of an appraiser but can assist the owner if acting in another capacity.

C. The appraiser may perform any of the necessary services of appraisal practice so long as the advocacy is disclosed.

D. The appraiser must not assist the owner under any conditions and must
immediately withdraw from the assignment.

Answer 7

B. The appraiser cannot perform any service that involves advocacy while in the role of an appraiser but can assist the owner if acting in another capacity.

Note: By definition, an appraiser is expected to perform valuation services competently and in a manner that is independent, impartial, and objective.

Question 8

Valuation services may be performed by which of the following?

A. all these answers are correct
B. accountants
C. appraisers
D. real estate agents

Answer 8

A. all these answers are correct

Question 9

The party the valuer intends will use the appraisal report is an intended user.
True
False

Answer 9

True

Question 10

An appraiser is expected to perform valuation services competently and in a manner that is consistent with the goals of the client.
True
False

Answer 10

False

Note: By definition, an appraiser is expected to perform valuation services competently and in a manner that is independent, impartial, and objective, not necessarily consistent with the “goals” of the client.