USPAP 7 hour course Ch 5, 6 and 7 quiz

Question 1

Is Appraiser J performing as an appraiser when developing these value ranges prior to the agreement to perform an assignment?

Answer 1

Yes, because they are performing an appraisal

Question 2

Is Appraiser J required by USPAP to prepare a workfile in these assignments where the client does not order a full inspection appraisal?

Answer 2

Yes, a value range is an appraisal, so a workfile must be created and maintained

Question 3

Paging randomly through USPAP searching for an answer, without defining the problem and creating a plan, is analogous to:

Answer 3

Wandering aimlessly through a home improvement store looking for one item.

Question 4

A systematic approach may be employed to answer USPAP questions. What is the first step in this process?

Answer 4

Define the problem.

Question 5

You are state-credentialed appraiser and you have been offered an appraisal assignment on a complex property. You are questioning whether or not your state-issued credential will permit you to appraise the property. What is the best source to find the answer to this question?

Answer 5

Your state appraiser licensing law

Question 6

Finding where the answer to your question lives in the USPAP publication is not as simple as it may first appear. Why is this?

Answer 6

The answer may live in several different parts of USPAP, or in the guidance.

Question 7

An appraiser is developing an appraisal on a complex, income producing property, and wants to develop a discounted cash flow analysis. Where should the appraiser go to find information on how to develop this valuation method?

Answer 7

Appraisal textbooks.

Question 8

You are answering a USPAP question. As part of the process, you may need to answer several additional questions in order to properly define the problem.

Answer 8

TRUE

Question 9

A real property appraiser has been asked to prepare an appraisal on a two-unit residence for mortgage financing. Instead of reporting the results on a secondary market report form, the client asks the appraiser to prepare a narrative-style report. The appraiser is required by state law to comply with USPAP in this assignment. Whith which part or parts of USPAP does the appraiser need to comply?

Answer 9

All of the Rules in USPAP, as well as STANDARDS 1 and 2

Question 10

Two weeks after transmitting an appraisal report on a residential property, an appraiser is contactted by the client asking that the appraiser change the borrower’s name on the report. The original borrower was not identified as an intended user in this assignment. Which statement is true regarding this situation?

Answer 10

Two weeks after transmitting an appraisal report on a residential property, an appraiser is contactted by the client asking that the appraiser change the borrower’s name on the report. The original borrower was not identified as an intended user in this assignment. Which statement is true regarding this situation?

Question 11

You are using the search feature in the eUSPAP, and are searching for the tearm “intended user”. What are you likely to find?

Answer 11

There are so many results that the search isn’t helpful.

Question 12

An appraiser is workiing on an appraisal assignment for a mortgage lender client. The client requests two front photos, two rear photos, two street scene photos, and a photo of the property located directly acress the street. How would this request BEST be classified?

Answer 12

A client condition.

Question 13

Appraiser A is providing value ranges to potential clients before quoting appraisal fees and agreeing to perform assignments. Is a range of value an appraisal as defined in USPAP?

Answer 13

Yes, always.

Question 14

Is Appraiser J permitted under USPAP to receive compensation for an appraisal based on the value of the property (e.g., $100 of an appraisal fee for every $100,000 of property value)?

Answer 14

No, this is prohibited

Question 15

Who are Appraiser J’s peers?

Answer 15

Other appraisers who have expertise in the same or a similar assignment

Question 16

Two appraisers work together on an appraisal assignment. Both appraisers sign the letter of transmittal in the resulting appraisal report. Which statement is TRUE regarding the requirement for a signed certification in this report?

Answer 16

Both appraisers must sign a certification.

Question 17

Is it permissible under USPAP for an appraisal report to contain two certifications?

Answer 17

Yes, multiple certifications are permitted in the same report

Question 18

Under USPAP, credible is an adjective that applies to _________, and misleading is an adjective that applies to _________.

Answer 18

Appraisal development, appraisal reporting

Question 19

Does USPAP require an appraiser to produce an appraisal report that is free of typographical errors?

Answer 19

No

Question 20

An appraiser’s research indicates that the personal property component of a hotel property has a value of approximately $2 million. However, at the behest of the client, the appraiser indicates in the appraisal report that the personal property has no value. Which USPAP term best describes this situation?

Answer 20

Bias

Question 21

If an appraiser delivers an appraisal report after the due date, is that a violation of USPAP?

Answer 21

No

Question 22

The due date for an assignment is best described as:

Answer 22

A client condition

Question 23

Is the appraiser correct in disregarding the client’s instructions and not making a personal inspection of the subject property?

Answer 23

No, because the client may have some input into the scope of work, and their instructions to inspect the property are an assignment condition

Question 24

Is an appraiser required to clearly identify the intended use of an appraisal, and if so, why?

Answer 24

Yes, it is necessary to identify the intended use because the credibility of assignment results is judged in the context of intended use.

Question 25

An appraiser completes an appraisal for an agent of a client and transmits the report. The agent subsequently asks the appraiser to change the name of the client and re-transmit the report, because the agent provided the wrong client name to the appraiser. What should the appraiser do in accordance with USPAP?

Answer 25

Consider the request as a new assignment

Question 26

An appraiser completes an appraisal on a property for a mortgage lender as the client. The appraiser identifies the buyer of the property as an intended user. Is the appraiser permitted by USPAP to disclose confidential information or assignment results to the buyer?

Answer 26

No, unless the client provides authorization for the appraiser to do so

Question 27

May the appraiser discuss facts in the appraisal report with a party who is not the appraiser’s client or an intended user?

Answer 27

Yes, as long as they do not disclose confidential information or assignment results

Question 28

An appraiser is valuing a property for which the zoning is indeterminate. The appraiser made several attempts to verify the zoning with the municipality but was unsuccessful. An adjacent property is zoned HC-Highway Commercial. The appraiser states in the report that the zoning could not be confirmed and it is believed to be HC, and values the property as such. The report also states that this might have affected the value conclusion. This appraisal involves the use of:

Answer 28

An extraordinary assumption only

Question 29

There were well-publicized allegations of construction defects involving the subject properties. Are these allegations considered to be facts that could affect the value of these properties?

Answer 29

Yes, well-publicized allegations of defects are facts that could affect value

Question 30

In the case study scenario, Appraiser One wrote a letter to the lender outlining the alleged deficiencies found in the other appraiser’s report. Is this an appraisal review assignment?

Answer 30

No