Review Questions Flashcards
1
Q
Which statement BEST describes The Appraisal Foundation?
It is made up of eight U.S.-based organizations and one from Canada.
It is a federal government agency.
It is a non-profit organization established for educational and scientific purposes.
It is the organization responsible for enforcing the requirements of USPAP.
A
It is a non-profit organization established for educational and scientific purposes.
2
Q
The Appraisal Foundation issues Valuation Advisories on recognized appraisal methods and techniques. For appraisers, compliance with these Valuation Advisories is:
Voluntary
Required by state appraisal regulatory agencies
Forbidden
Mandated by federal law
A
Voluntary
3
Q
Which was NOT a direct result of the passage of FIRREA?
USPAP was upgraded from a voluntary to a mandatory standard
The Appraisal Foundation was established
Each state was required to set up an appraiser licensing/certification program
The financial institution regulatory structure was changed
A
The Appraisal Foundation was established
4
Q
Which board within The Appraisal Foundation is responsible for establishing requirements for appraiser licensure and certification?
Board of Trustees (BOT)
Appraisal Standards Board (ASB)
Appraiser Qualifications Board (AQB)
Board of Governors of the Federal Reserve System (FRB)
A
AQB
5
Q
An appraiser contacts the ASC’s National Complaint Hotline because she believes an AMC has attempted to improperly influence her. What can the appraiser expect the hotline to do?
Initiate a complaint on behalf of the appraiser
Arbitrate the complaint
Provide a referral for a complaint
Follow up on a complaint referral
A
Provide a referral for a complaint
6
Q
The Dodd-Frank Act of 2010 requires the ASC to create and maintain a national registry of: Home builders and contractors Subprime lenders Appraisal trainees and supervisors Appraisal management companies
A
Appraisal management companies
7
Q
Currently, what is the annual national registry fee per appraiser? $25 $40 $75 $100
A
$40
8
Q
The ASC is composed of members appointed by the four federal financial institution regulatory agencies, plus the Bureau of Consumer Financial Protection, the Federal Housing Finance Agency, and _____________.
Department of Homeland Security
Environmental Protection Agency
National Association of Homebuilders
Department of Housing and Urban Development
A
HUD
9
Q
A state appraisal regulatory agency issues \_\_\_\_\_\_\_\_, while a professional appraiser organization awards \_\_\_\_\_\_\_\_. Designations, credentials Credentials, designations Designations, licenses Credentials, licenses
A
Credentials, designations
10
Q
An appraiser receives a warning letter regarding an appraisal she had completed that did not comply with USPAP. Where would this letter have come from?
Appraisal Subcommittee (ASC)
State appraisal regulatory agency
Appraisal Standards Board (ASB)
Any or all of these entities may send warning letters to appraisers
A
State appraisal regulatory agency
11
Q
State appraisal regulatory agencies establish both standards of practice and ___________.
Rules for use of the National Appraiser Registry
Protocols for appraisals prepared for FHA loans
Criteria for licensure, certification, and recertification that meet or exceed AQB minimums
USPAP
A
Criteria for licensure, certification, and recertification that meet or exceed AQB minimums
12
Q
Which of these is NOT a function performed by professional appraiser organizations?
Disseminating professional publications and trade journals
Issuing appraisal credentials
Offering networking opportunities
Providing legislative lobbying and advocacy
A
Issuing appraisal credentials
13
Q
Which entity is responsible for monitoring The Appraisal Foundation to ensure it is properly fulfilling its responsibilities under Title XI of FIRREA? Appraisal Subcommittee (ASC) U.S. Department of HUD Appraiser Qualifications Board (AQB) State appraisal regulatory agencies
A
Appraisal Subcommittee ASC
14
Q
Who is responsible for appointing members to the Appraiser Qualifications Board? Appraisal Standards Board (ASB) The Secretary of HUD The AQB appoints its own members The Board of Trustees (BOT)
A
The Board of Trustees (BOT)
15
Q
Which board within The Appraisal Foundation has the authority to make revisions to USPAP?
Board of Trustees (BOT)
Appraisal Standards Board (ASB)
Appraiser Qualifications Board (AQB)
All boards within the Foundation have the authority to revise USPAP
A
Appraisal Standards Board (ASB)
16
Q
An appraiser violates the laws of his state when performing an appraisal. Which entity may take disciplinary action against him?
The Appraiser Qualifications Board (AQB)
The Appraisal Standards Board (ASB)
The state appraisal regulatory agency
Any and all of these entities may pursue disciplinary action
A
The state appraisal regulatory agency
17
Q
How often do ASC representatives perform an on-site review of each state’s appraisal licensing and certification program? Monthly Every year Every two years Every three years
A
Every two years
18
Q
Which entity maintains a national registry of licensed and certified appraisers? Appraisal Standards Board (ASB) Appraisal Subcommittee (ASC) Appraiser Qualifications Board (AQB) National Association of REALTORS
A
Appraisal Subcommittee (ASC)
19
Q
Before the AQB revises the Real Property Appraiser Qualification Criteria, it must first:
Expose the proposed changes and solicit comments
Demonstrate that the proposed changes will not affect the profession
Formally poll all appraisers in the United States
Receive formal approval from the U.S. Department of HUD
A
Expose the proposed changes and solicit comments
20
Q
According to the AQB minimum criteria, an applicant for a Licensed Residential Appraiser credential must obtain \_\_\_\_\_\_\_ experience hours in no fewer than \_\_\_\_\_\_\_ months. 1,000; 6 1,000; 12 2,000; 16 2,000; 24
A
1,000; 6
21
Q
The definition of __________ appraisal includes the phrase “One in which the property to be appraised, the form of ownership, or the market conditions are atypical.”
Complex one-to-four family residential property
Non-residential property
Limited
Non-federally related two-to-four family real property
A
Complex one-to-four family residential property
22
Q
An applicant for a Trainee Appraiser credential must have completed his or her required appraisal courses within the \_\_\_\_\_\_ period immediately preceding the application. 6 month 3 year 5 year 10 year
A
5 year
23
Q
A Trainee Appraiser wishes to upgrade to a Licensed Residential Appraiser credential. Under the AQB Criteria, how many additional hours of appraisal education must the Trainee Appraiser complete? 25 50 75 90
A
75
24
Q
As the term “Trainee Appraiser” is used in the AQB Criteria, it refers to which state-specific terms?
Trainee Appraisers only
Provisional Appraisers only
Registered Appraisers only
The term “Trainee Appraiser” refers to all of these
A
The term “Trainee Appraiser” refers to all of these
25
Which type of appraisal credential does not require an applicant to possess any appraisal experience?
Licensed Residential Appraiser
Trainee Appraiser
Certified Residential Appraiser
None of these classifications requires an applicant to possess appraisal experience
Trainee Appraiser
26
```
A holder of a valid Certified Residential Appraiser credential wants to upgrade to a Certified General credential. How many additional hours of appraisal education does he or she need in order to qualify?
100
150
175
200
```
100
27
Which of these appraisal credentials allows the credential holder to appraise any one-to-four family residential property, regardless of complexity?
Licensed Residential Appraiser only
Trainee Appraiser only
Certified Residential Appraiser only
Both Licensed Residential Appraiser and Certified Residential Appraiser
Certified Residential Appraiser only
28
```
The AQB Criteria specifies that an applicant for a Certified Residential Appraiser credential must have accumulated _____ hours of appraisal experience, in no fewer than ______ months.
1,000; 12
1,500; 12
2,000; 16
3,000; 18
```
1,500; 12
29
An applicant for a Certified Residential Appraiser credential must possess _________ from an accredited college or university.
A Bachelor’s degree or higher
An Associate's degree in a concentrated field of study related to business or real estate
30 semester credit hours in specified topics
Any of these
Any of these
30
```
An applicant for a Certified General Appraiser credential must have accumulated a minimum of how many hours of non-residential appraisal work?
1,000
1,500
2,000
2,500
```
1,500
31
```
In order to be acceptable for appraiser qualifying education, an appraisal course must include ________ examination.
An oral
An open-book
A closed-book
An optional
```
Closed-book
32
```
In order to be acceptable for appraiser qualifying education, an appraisal course must be a minimum of ____ hours in length.
Three
Seven
Ten
Fifteen
```
fifteen
33
Trainee Appraiser Ed is trying to complete his qualifying education courses toward becoming a Certified Residential Appraiser. Which one of these courses would NOT count toward meeting that requirement?
30-hour Residential Sales Comparison and Income Approaches
15-hour Statistics, Modeling, and Finance
7-hour USPAP Update Course
20-hour course in Appraisal Subject Matter Electives
7 hour updated USPAP course
34
For a distance education course to be acceptable for appraiser qualifying education, it must include a written examination. What does the term “written” mean in this requirement?
A paper exam only
An electronically-administered exam only
A paper exam or an electronically-administered exam
A written or orally-administered exam
A paper exam or an electronically-administered exam
35
A Certified General Appraiser wants to act as a Supervisory Appraiser. The appraiser received a formal reprimand from the state appraisal regulatory agency 18 months ago, but has had no disciplinary issues before or since that time. Is the appraiser qualified to be a Supervisory Appraiser?
Yes, because the appraiser is currently “in good standing”, and the prior action did not affect the appraiser’s eligibility to engage in appraisal practice
No, because the disciplinary action permanently disqualifies the appraiser from ever acting as a Supervisory Appraiser
Yes, because the disciplinary action occurred over one year ago
No, because a formal reprimand affects the appraiser’s legal eligibility to engage in appraisal practice
Yes, because the appraiser is currently “in good standing”, and the prior action did not affect the appraiser’s eligibility to engage in appraisal practice
36
A Certified Residential Appraiser wants to act as a Supervisory Appraiser. The appraiser had his certificate suspended by the state two years ago, but has had no disciplinary issues since that time. Is the appraiser qualified to be a Supervisory Appraiser?
Yes, because the appraiser is currently “in good standing”
No, because the suspension permanently disqualifies the appraiser from ever acting as a Supervisory Appraiser
Yes, because the suspension was over one year ago
No, because the appraiser must have been “in good standing” for a period of at least three years
No, because the appraiser must have been “in good standing” for a period of at least three years
37
The AQB requirements for Supervisory Appraisers would apply to whom?
An individual who is supervising a Certified Residential Appraiser
An individual who is supervising a Licensed Residential Appraiser
An individual who is supervising a Trainee Appraiser
All of these
An individual who is supervising a Trainee Appraiser
38
A state appraisal regulatory agency wants to establish a requirement that a Supervisory Appraiser must have 5 years of experience as a certified appraiser. Is the state permitted to do this?
No, the state must adopt the AQB requirements without revisions
Yes, because states may adopt requirements that exceed those of the AQB
No, because the Appraisal Subcommittee would never accept such a requirement
Yes, but the state is prohibited from enforcing the requirement if it is challenged in court
Yes, because states may adopt requirements that exceed those of the AQB
39
USPAP defines an appraiser as one who ___________.
Is expected to perform valuation services competently and in a manner that is independent, impartial, and objective
Is licensed or certified by the state where he or she is domiciled
Has received formal training in appraisal procedures, practice, and ethics
Has successfully completed the 15-hour National USPAP Course or its AQB-approved equivalent
Is expected to perform valuation services competently and in a manner that is independent, impartial, and objective
40
```
A Supervisory Appraiser who knowingly allows a Trainee Appraiser to communicate a misleading report has violated _________ of USPAP.
The RECORD KEEPING RULE
The ETHICS RULE
The REPORTING RULE
No part
```
The ETHICS RULE
41
Who is responsible for complying with USPAP?
Appraisal companies only
Individual appraisers only
Individual appraisers and appraisal companies jointly
An appraiser’s clients
Individual appraisers only
42
A Trainee Appraiser is assisting in an appraisal under a Supervisory Appraiser. The Trainee Appraiser had provided prior real estate brokerage services on the subject property within the prior three years. The Trainee Appraiser is not signing the report certification. Does USPAP require the Supervisory Appraiser to disclose the prior service provided by the Trainee Appraiser?
Yes, because the Trainee Appraiser has an obvious conflict of interest
No, however if the appraiser believes disclosure is necessary, then it should be made
Yes, the Supervisory Appraiser is required by USPAP to disclose this prior service provided by the Trainee Appraiser
No, but the Trainee Appraiser is precluded from assisting in this assignment
No, however if the appraiser believes disclosure is necessary, then it should be made
43
```
Under the ETHICS RULE, Trainee Appraisers have _______ confidentiality requirements as compared to Supervisory Appraisers.
Lesser
The same
More stringent
No
```
the same
44
Trainee Tom asks Appraiser Anne for access to a workfile for an assignment on which he had provided assistance to her. He is required to submit the report and workfile to the state appraisal regulatory agency as part of an experience audit. Anne does not want to provide access to this information. Which statement is TRUE regarding this situation?
Anne may deny access to the workfile at her discretion.
If Anne provides Tom access to the workfile, she will violate the Confidentiality section of the ETHICS RULE.
Anne must provide access to the workfile in this situation.
Tom was required to maintain his own copy of the workfile, and should have done so.
Anne must provide access to the workfile in this situation.
45
An appraiser does not have the competency to perform an appraisal assignment and does not wish to acquire the competency. What does USPAP require the appraiser to do in this situation?
Delegate the assignment to a Trainee Appraiser
Decline the assignment
Find another appraiser who does have the competency
Inform the client that he or she intends to complete the assignment without having or acquiring competency
Decline the assignment
46
When a Trainee Appraiser and a Supervisory Appraiser work together on an assignment, which one must retain custody of the workfile?
The Trainee Appraiser
The Supervisory Appraiser
They each must have separate copies of the workfile
Either, but one must take responsibility
Either, but one must take responsibility
47
```
A Supervisory Appraiser denies a Trainee Appraiser’s ability to access workfiles for appraisals on which the Trainee assisted, when the trainee has been asked to submit reports to the state appraisal regulatory agency. What part of USPAP has the Supervisory Appraiser violated?
The COMPETENCY RULE
The RECORD KEEPING RULE
STANDARD 1
No part of USPAP has been violated
```
The RECORD KEEPING RULE
48
The SCOPE OF WORK RULE governs what aspect of an appraisal assignment?
Competency
Reporting
Development
None, because it does not apply to appraisal
Development
49
The SCOPE OF WORK RULE applies in:
Appraisal assignments only
Appraisal or appraisal review assignments only
Mass appraisal assignments only
All assignments that an individual performs as an appraiser
Appraisal or appraisal review assignments only
50
An appraiser wishes to perform an appraisal review assignment but she does not possess the necessary competency. What is the FIRST action she must take, according to the COMPETENCY RULE?
Acquire the necessary competency through completion of coursework
Affiliate with another appraiser who is competent to complete the assignment
Disclose the lack of competency to the client before agreeing to perform the assignment
Develop a credible opinion of the quality of the other appraiser’s work
Disclose the lack of competency to the client before agreeing to perform the assignment
51
In an appraisal assignment, when is the workfile required to be in existence?
Prior to the issuance of any report or communication of assignment results
At the time the assignment is accepted
Within a reasonable time period after the issuance of a report
Only when the client requests a workfile
Prior to the issuance of any report or communication of assignment results
52
A workfile access and retrieval agreement between a Trainee Appraiser and a Supervisory Appraiser:
Must be in writing
Is illegal
Must comply with the form and format specified in USPAP
May be written or oral
May be written or oral
53
What are the two written report options specified in USPAP STANDARD 2?
Complete Appraisal Report and Limited Appraisal Report
Written Appraisal Report and Oral Appraisal Report
Appraisal Report and Restricted Appraisal Report
Paper Appraisal Report and Electronic Appraisal Report
Appraisal Report and Restricted Appraisal Report
54
```
A Trainee Appraiser assists a Supervisory Appraiser in the performance of a real property appraisal. The Trainee Appraiser inspects the property, but the Supervisory Appraiser does not. Both appraisers sign the certification. Which of these statements in the certification would be appropriate?
At least one of the signing appraisers has made a personal inspection of the property that is the subject of this report.
The Trainee Appraiser has made a personal inspection of the subject property. The Supervisory Appraiser has not made an inspection of the subject property.
Both the Trainee Appraiser and the Supervisory Appraiser have made a personal inspection of the subject property.
I have (or have not) made a personal inspection of the property that is the subject of this report.
```
The Trainee Appraiser has made a personal inspection of the subject property. The Supervisory Appraiser has not made an inspection of the subject property.
55
```
Which USPAP Standard establishes requirements for reporting a real property appraisal?
STANDARD 1
STANDARD 2
STANDARD 8
STANDARD 10
```
STANDARD 2
56
Which approach or approaches must be developed in every real property appraisal assignment?
The sales comparison approach only
The cost approach only
Both the sales comparison and cost approaches
Whatever approach or approaches are necessary for credible results
Whatever approach or approaches are necessary for credible results
57
```
Which standard in USPAP sets forth the requirements for developing a real property appraisal?
STANDARD 1
STANDARD 2
STANDARD 3
STANDARD 7
```
STANDARD 1
58
A Trainee Appraiser makes a minor error in an appraisal that does not affect the value conclusion. Is this a violation of USPAP?
Yes, because all errors are violations of USPAP
No, because USPAP does not require perfection
Yes, but the Supervisory Appraiser is solely responsible for the USPAP violation
No, but the error is a violation of state laws and regulations
No, because USPAP does not require perfection
59
```
Which of these is the MOST appropriately rounded final value opinion?
$104,550
$3,646,000
$2,050,000
$384,700
```
$2,050,000
60
```
Trainee Tina assists Supervisor Sam in a real property appraisal assignment; however Tina does not sign the certification. Where does USPAP require Sam to disclose the extent of Tina’s assistance in the Appraisal Report?
Anywhere
Nowhere; this disclosure is not required
In the certification
On the title page
```
Anywhere
61
STANDARD 1 in USPAP establishes the requirements for:
Reporting a real property appraisal
Developing a real property appraisal
Disclosing prior services provided regarding the subject property
Customary and reasonable fees
Developing a real property appraisal
62
A Supervisory Appraiser may affix a Trainee Appraiser’s signature to an appraisal report:
If authorization is given in a specific assignment
If blanket signature authorization is provided
Never, an appraiser may never affix the signature of another appraiser
Always, because the Supervisory Appraiser is the Trainee Appraiser’s superior
If authorization is given in a specific assignment
63
An appraiser wishes to perform an appraisal assignment but he does not possess the necessary competency. What are his options under USPAP?
He must decline the assignment
Acquire the necessary competency or decline the assignment
Complete the assignment competently or complete it incompetently
Affiliate with another appraiser or disclose his lack of competency
Acquire the necessary competency or decline the assignment
64
Appraiser Amy agrees to present a seminar for a small lending institution to explain appraisal issues to the institution’s staff. Does the ETHICS RULE of USPAP apply to Amy in performing this activity?
Yes, because Amy is providing an appraisal
No, because Amy may be unethical if she wants to
Yes, because Amy is acting as an appraiser
No, because USPAP does not apply if Amy is not performing an appraisal
Yes, because Amy is acting as an appraiser
65
```
At the beginning of the Trainee Appraiser’s career, who is likely to bear primary responsibility for the scope of work determination in an appraisal assignment?
The Trainee Appraiser
The Supervisory Appraiser
The client
The Appraisal Standards Board
```
The Supervisory Appraiser
66
In a market value appraisal, USPAP requires appraisers to analyze, if available in the normal course of business:
The most recent prior sale of the subject property if it occurred within 3 years of the effective date of the appraisal
All sales of the subject property that occurred within 3 years prior to the effective date of the appraisal
All sales of the subject property that occurred within 3 months prior to the date of the report
All prior sales of the subject property, regardless of how long ago they occurred
All sales of the subject property that occurred within 3 years prior to the effective date of the appraisal
67
A Trainee Appraiser assists a Supervisory Appraiser in the performance of an appraisal. The Trainee Appraiser’s only contribution to the assignment is assisting in the property inspection and preliminary MLS research into comparable sales. Should the Trainee Appraiser sign the certification in this appraisal report?
Yes, all trainees must sign all reports on which they provided assistance
No, because the trainee’s contribution to the assignment was limited
Yes, because if the trainee doesn’t sign, that would be a violation of USPAP
No, because trainees are not permitted to sign appraisal reports
No, because the trainee’s contribution to the assignment was limited
68
```
The requirements for Trainee Appraiser and Supervisory Appraiser established by an individual credentialing jurisdiction ____________ the requirements established by the AQB.
May not exceed
May exceed
Must be exactly the same as
Are less important than
```
may exceed
69
egarding the requirements for Trainee Appraiser and Supervisory Appraiser, the Supervisory Appraiser is responsible for understanding:
The AQB requirements only
The individual jurisdiction’s requirements only
The AQB requirements and the jurisdiction’s requirements
The applicability of the DEPARTURE RULE in USPAP
The AQB requirements and the jurisdiction’s requirements
70
```
Who is responsible for providing the Trainee Appraiser with an understanding of USPAP?
The Supervisory Appraiser
The Certified USPAP Instructor
The Appraisal Foundation
The state appraisal regulatory agency
```
The Supervisory Appraiser
71
Supervisory Appraisers are responsible for:
Accompanying the Appraisal Trainee when he or she is taking classes
Ensuring that the Trainee Appraiser can support his or her family
Instructing the Trainee Appraiser in appraisal ethics
Providing transportation for the Trainee Appraiser
Instructing the Trainee Appraiser in appraisal ethics
72
Who is responsible for instructing a Trainee Appraiser in appraisal ethics and appraisal methods and techniques?
The Appraisal Foundation
The appraisal school where the Trainee takes his or her courses
The Supervisory Appraiser
The Trainee Appraiser
The Supervisory Appraiser
73
```
Once the Trainee Appraiser has established a goal of becoming a credentialed appraiser, who is responsible for monitoring the Trainee Appraiser’s progress?
The Trainee Appraiser only
The Supervisory Appraiser
The state appraisal regulatory agency
No one
```
The Supervisory Appraiser
74
The Trainee Appraiser’s competency to inspect a property unsupervised:
Should never be re-examined by the Supervisory Appraiser
Will not vary by property type or complexity
Should be evaluated on an assignment-by-assignment basis
Does not matter; the Supervisory Appraiser must accompany the Trainee Appraiser on all inspections
Should be evaluated on an assignment-by-assignment basis
75
```
Who is responsible for providing tasks to the Trainee Appraiser to ensure that he or she is progressing and learning?
The Trainee Appraiser
The Supervisory Appraiser
The state appraisal regulatory agency
The client
```
The Supervisory Appraiser
76
hich of these items is NOT one of the AQB minimum requirements for an experience log?
Number of actual work hours by the trainee/applicant on the assignment
Address of appraised property
Type of property
Signature and state certification number of Trainee Appraiser
Signature and state certification number of Trainee Appraiser
77
Subject to state-specific laws and regulations, a Supervisory Appraiser is responsible for accompanying the Trainee Appraiser on:
All inspections until the Trainee Appraiser becomes licensed or certified
All inspections until the Trainee Appraiser is competent to conduct inspections independently
All inspections, even after the Trainee Appraiser becomes licensed or certified
The first ten property inspections, after which the Trainee Appraiser is deemed competent to perform an inspection without supervision
All inspections until the Trainee Appraiser is competent to conduct inspections independently
78
Why is it important that a Trainee Appraiser obtain experience in all applicable valuation methodologies and approaches to value?
So the Trainee Appraiser becomes capable of performing the duties of a licensed or certified appraiser
So the Trainee Appraiser will do all the work, thus making life easier for the Supervisory Appraiser
In order for the Trainee Appraiser to build up an extensive client list
So the Supervisory Appraiser can become more and more nit-picky in his or her review of the Trainee Appraiser’s work
So the Trainee Appraiser becomes capable of performing the duties of a licensed or certified appraiser
79
A Trainee Appraiser assists a Supervisory Appraiser in an appraisal review, but does not sign the review report. Where must the Trainee Appraiser’s name appear in the appraisal review report?
Anywhere, as long as it is prominent
Nowhere, because Trainee Appraisers are not permitted to assist in appraisal review assignments
In the certification
In the letter of transmittal
In the certification
80
As a Trainee Appraiser’s knowledge and experience grows, what should happen to the Supervisory Appraiser’s scope of review?
It should increase
It should decrease
It should continue even after the Trainee Appraiser becomes licensed or certified
The Supervisory Appraiser can allow the Trainee Appraiser to operate unsupervised
It should decrease
81
Which course is part of the Trainee Appraiser’s required core curriculum, according to the AQB?
Residential Site Valuation and Cost Approach
15 Hour National USPAP Course
Statistics, Modeling, and Finance
Residential Market Analysis and Highest and Best Use
15 Hour National USPAP Course
82
```
Who is responsible for providing tasks to the Trainee Appraiser to ensure that he or she is progressing and learning?
The Trainee Appraiser
The Supervisory Appraiser
The state appraisal regulatory agency
The client
```
The Supervisory Appraiser
83
```
The AQB minimum states that a Supervisory Appraiser must have _____ experience as a certified appraiser.
1 year of
2 years of
3 years of
Extensive
```
3 years of
84
```
A Supervisory Appraiser engages several appraisal trainees and has them turning out a high volume of appraisal reports with minimal training and supervision. This type of operation is known as:
A USPAP factory
A trainee school
A typical appraisal shop
An appraisal mill
```
An appraisal mill
85
A Trainee Appraiser who performs the cost approach repeatedly on residential appraisal assignments:
Is violating USPAP
Is on the road to perfection
Is forming habits that may be good or bad
Should also be working on non-residential appraisals
Is forming habits that may be good or bad
86
How might a Trainee Appraiser abuse the trust of the Supervisory Appraiser, in the context of the Trainee-Supervisor Relationship?
Discussing appraisal theory with other appraisers
Misusing the Supervisory Appraiser’s signature
Treating the Supervisory Appraiser like the boss
Taking additional education courses in order to learn all he or she can
Misusing the Supervisory Appraiser’s signature
87
```
A Supervisory Appraiser must not have been subject to any prior disciplinary action within the prior _____ that would affect his or her ability to practice.
Three years
Four years
Five years
Six months
```
Three years
88
Who is responsible for making sure the Trainee Appraiser is learning the correct way to perform appraisal tasks?
The Supervisory Appraiser only
The Trainee Appraiser only
The Supervisory Appraiser and the Trainee Appraiser both
The Appraiser Qualifications Board (AQB)
The Supervisory Appraiser and the Trainee Appraiser both
89
A Supervisory Appraiser is bringing a Trainee Appraiser along too fast, and has assigned tasks that the Trainee Appraiser is not capable of completing. What should the Trainee Appraiser do?
Not worry, because the Supervisory Appraiser is responsible for any errors that might be made
Tell the Supervisory Appraiser
Find a different Supervisory Appraiser
Obtain a separate errors and omissions insurance policy
Tell the Supervisory Appraiser
90
The AQB requirements for an experience log are:
Only applicable to the Certified General Appraiser classification
Merely a guideline, which a jurisdiction can ignore if they wish
A maximum, which cannot be exceeded by the jurisdiction
A minimum, which may be exceeded by the jurisdiction
A minimum, which may be exceeded by the jurisdiction
91
```
The ASC National Registry can be used to search for ________ appraisal credentials.
Active only
Expired only
Both active and expired
Supervisor and Trainee
```
Both active and expired
92
A Supervisory Appraiser must accompany the Trainee Appraiser on all inspections until the Trainee Appraiser is competent to conduct inspections independently, and:
Has logged at least 1,500 hours of real property appraisal experience that includes an interior inspection of the subject property
Has completed a 15-hour course relating to real property construction, design, and inspection
Has met all specific requirements pertaining to property inspection established by the credentialing jurisdiction
Has successfully completed a 15-hour USPAP course
Has met all specific requirements pertaining to property inspection established by the credentialing jurisdiction
93
```
Who is primarily responsible for ensuring that the Trainee Appraiser learns from his or her field experience?
The Supervising Appraiser only
The Trainee Appraiser only
The Supervisor and the Trainee jointly
The state appraisal regulatory agency
```
The Trainee Appraiser only
94
Who is responsible for documenting a Trainee Appraiser’s experience log?
The Trainee Appraiser only
The Supervisory Appraiser only
Both the Trainee Appraiser and the Supervisory Appraiser
The secretary or office manager of the appraisal firm where the trainee works
Both the Trainee Appraiser and the Supervisory Appraiser
95
```
The ASC’s National Registry would NOT be useful in searching for ________ Appraisers.
Certified Residential
Certified General
Trainee
Licensed Residential
```
Trainee
96
Who is responsible for documenting a Trainee Appraiser’s experience log?
The Trainee Appraiser only
The Supervisory Appraiser only
Both the Trainee Appraiser and the Supervisory Appraiser
The secretary or office manager of the appraisal firm where the trainee works
Both the Trainee Appraiser and the Supervisory Appraiser
97
Trainee Appraiser Tim has more than one Supervisory Appraiser. Which statement is TRUE regarding his obligation to maintain experience logs?
Tim should maintain separate experience logs for each Supervisory Appraiser.
Tim will not be able to use experience hours from multiple Supervisory Appraisers towards becoming licensed or certified.
Tim should maintain one single experience log, and have each Supervisory Appraiser sign it annually.
Tim must carry his experience log around with him at all times.
Tim should maintain separate experience logs for each Supervisory Appraiser.
98
Which statement is TRUE regarding a Supervisory Appraiser’s responsibility regarding a Trainee Appraiser’s completion of the education requirements?
The Supervisory Appraiser is responsible for monitoring the Trainee Appraiser’s completion of the education requirements.
The Supervisory Appraiser is responsible for teaching the education courses that the Trainee Appraiser is required to complete.
The Supervisory Appraiser is responsible for taking the required education courses alongside the Trainee Appraiser.
The Supervisory Appraiser has no responsibility to the Trainee Appraiser regarding education requirements.
The Supervisory Appraiser is responsible for monitoring the Trainee Appraiser’s completion of the education requirements.
99
Supervisor Scott has been working with Trainee Tara for over a year. Scott only assigns very basic tasks to Tara, and she feels she is not being challenged. Tara is anxious to progress in her appraisal knowledge. What should she do?
Immediately disassociate with Scott and find a new Supervisory Appraiser
Quietly begin to work on additional tasks without Scott knowing about it
Inform Scott that she is ready for more advanced responsibilities
Nothing; Scott is the boss and therefore he knows best
Inform Scott that she is ready for more advanced responsibilities
100
If a Trainee Appraiser has more than one Supervisory Appraiser, then:
The Trainee Appraiser has violated the AQB requirements for his or her position
The Trainee Appraiser should maintain one single experience log, in order to avoid confusion
Only one of the Supervisory Appraisers is responsible for maintaining an experience log
The Trainee Appraiser should maintain separate experience logs for each supervisor
The Trainee Appraiser should maintain separate experience logs for each supervisor
101
```
The Supervisory Appraiser – Trainee Appraiser relationship is __________ commitment by both parties.
An irrevocable
A short-term
A long-term
An exclusive
```
A long-term
102
A Trainee Appraiser has experience primarily in the appraisal of tract homes in subdivisions, and regularly inspects these properties unsupervised. Should the Supervisory Appraiser allow this Trainee Appraiser to inspect a 9,000 square foot luxury estate with 20 acres and large outbuildings without supervision?
Yes, because this is a single-family home and the Trainee Appraiser is familiar with single-family homes
No, because this property is complex and is likely beyond the scope of the Trainee Appraiser’s experience
Yes, as long as the Trainee Appraiser believes he or she is competent to inspect without supervision
No, because a Trainee Appraiser should never inspect a property without the Supervisory Appraiser being present
No, because this property is complex and is likely beyond the scope of the Trainee Appraiser’s experience
103
A would-be Trainee Appraiser wants to appraise office buildings and income-producing commercial properties. What type of appraiser should she select as her Supervisory Appraiser?
Residential Certified Appraiser who is familar with these property types
General Certified Appraiser who is competent in these property types
Either a Residential or a General Certified Appraiser
An appraiser who is certified in another state
General Certified Appraiser who is competent in these property types
104
```
In Indiana, who has the power to amend the appraiser licensing law?
The governor
The Real Estate Appraisers Board
The legislature
The Appraisal Subcommittee
```
The legislature
105
```
Who appoints members of the Indiana Real Estate Appraiser Licensing and Certification Board?
The Appraisal Subcommittee
The Governor of Indiana
The Secretary of HUD
The Indiana General Assembly
```
The Governor of Indiana
106
```
If a person in Indiana appraises a parcel of real property without being licensed or certified, that person:
Can be granted a temporary license
Has committed a Grade 1 felony
Cannot be disciplined
Has committed a Class B infraction
```
Has committed a Class B infraction
107
```
The sale or lease of a legal interest in real estate located in Indiana is defined as ________ under Indiana law.
An appraisal company
A real estate transaction
An appraisal
Caveat emptor
```
A real estate transaction
108
```
Under Indiana law, an estimation that represents the final opinion of the value of real property that is the subject of a real estate transaction is:
An appraiser
A real estate transaction
An appraisal
An evaluation
```
an appraisal
109
```
You are reading the Indiana administrative rules and you see a reference to “the Board”. What does this term refer to?
The Federal Reserve Board
The Indiana Real Estate Appraisers Board
The Appraisal Practices Board
The Indiana Board of Trade
```
The Indiana Real Estate Appraisers Board
110
```
To qualify for an Appraiser Trainee license in Indiana, an applicant must complete how many hours of basic appraisal education? (This does not include the Supervisor-Trainee course.)
75
90
100
125
```
75
111
```
Who may be issued an appraisal license in Indiana?
A natural person
An appraisal firm
A corporation
A partnership
```
a natural person
112
An applicant for a Certified General Appraiser credential in Indiana has accumulated 3,000 hours of appraisal experience over 30 months. Of these hours, 1,000 are in the appraisal of non-residential properties. Which statement is TRUE regarding the acceptability of this experience?
The applicant has met the experience requirements for Certified General.
The applicant needs another 600 hours of experience.
The applicant needs another 1,000 hours of non-residential appraisal experience.
The applicant needs another six months of experience for a total of 36 months.
The applicant needs another 1,000 hours of non-residential appraisal experience.
113
In Indiana, all applicants for a Trainee license must:
Have accumulated 500 hours of appraisal experience
Complete 75 hours of qualifying appraisal education
Possess a college degree
Complete all of these requirements
Complete 75 hours of qualifying appraisal education
114
Which of these individuals would be permitted to act as a supervisory appraiser for a Trainee in Indiana?
A Licensed Appraiser in good standing with 20 years’ experience
A Certified General Appraiser who had disciplinary action against him 4 years ago but is now in good standing
A Certified Residential Appraiser with two years’ experience
All of these would be permitted to act as supervisory appraisers
A Certified General Appraiser who had disciplinary action against him 4 years ago but is now in good standing
115
A Trainee in Indiana wants to become a Certified Residential Appraiser. When may this person take the national appraiser licensing examination?
Any time after receiving his/her Trainee license
After completing all of the required education hours
After completing 50% of the required experience hours
After completing both the education and experience requirements
After completing both the education and experience requirements
116
```
A certified appraiser is suspended by the Board in July 2017. He completes his suspension and is reinstated in September 2017. Assuming Board approval, when is the soonest that he will be permitted to supervise a Trainee?
Immediately
July 2020
September 2020
Never
```
September 2020
117
A Trainee is sending copies of appraisal reports to the Indiana Board as part of an application for certification. These reports copies must be:
Appropriately redacted so that confidential information is protected
Signed in blue ink with a watermark to verify authenticity
No more than three years old
Exact, non-redacted copies of the report delivered to the client
Exact, non-redacted copies of the report delivered to the client
118
A Trainee in Indiana is assisting a Certified General Appraiser. This Trainee is permitted to assist on:
Appraisals of 1-4 family residential properties only
Any appraisals that the supervisory appraiser is permitted to appraise
Appraisals for non-lending purposes only
Appraisals for federally-regulated financial institutions only
Any appraisals that the supervisory appraiser is permitted to appraise
119
A Trainee in Indiana is permitted to:
Work independently of his/her supervising appraiser
Have his/her own clients
Accept payment from his/her supervising appraiser
Review appraisals submitted by others
Accept payment from his/her supervising appraiser
120
In Indiana, the Board currently issues three classes of real property appraisal licenses. What are they?
Certified Residential Appraiser, Licensed Residential Appraiser, Supervisory Appraiser
Licensed Residential Appraiser, Certified Residential Appraiser, Certified General Appraiser
Supervisory Appraiser, Certified Appraiser, Licensed Appraiser
Licensed Trainee Appraiser, Certified Residential Appraiser, Certified General Appraiser
Licensed Trainee Appraiser, Certified Residential Appraiser, Certified General Appraiser
121
```
The qualifications to become an appraiser that are established by rule in Indiana ___________ the qualifications that are promulgated by the Appraiser Qualifications Board of The Appraisal Foundation.
Must be exactly the same as
Cannot be higher than
Have no relation to
Cannot be less than
```
Cannot be less than
122
```
An applicant for a Trainee license is preparing to take qualifying education courses. In order to be used for qualifying education, a course must be a minimum of ____ hours in length.
3
7
15
75
```
15
