USPAP

Question 1

1 of 83Appraiser

Answer 1

One who is expected to perform valuation services competently and in a manner that is independent, impartial, and objective. (USPAP)

Question 2

2 of 83Client

Answer 2

The party of parties who engage an appraiser (by employment or contract) in a specific assignment. The client may be an individual, group, or entity, and may engage and communicate with the appraiser directly or through an agent. See also intended user.

Question 3

3 of 83When is an appraiser required to develop an opinion of reasonable exposure time in an appraisal of real property?

Answer 3

When exposure time is a component of the value definition being used

Question 4

4 of 83What is the primary purpose of USPAP?

Answer 4

Promote and maintain the public trust

Question 5

5 of 83Which procedure is not a part of USPAP’s appraisal process model?

Answer 5

Identify the root causes.

Question 6

6 of 83Jurisdictional Exception

Answer 6

An assignment condition established by applicable law or regulation, which precludes an appraiser from complying with a part of USPAP. (USPAP)

Question 7

7 of 83Restricted Appraisal Report

Answer 7

One of the two types of written appraisal report options specified in USPAP. A Restricted Appraisal Report generally contains less information than an Appraisal Report, and must include a prominent use restriction that limits the use of the report to the client and warns that the rationale for how the appraiser arrived at the opinions and conclusions set forth in the report may not be understood properly without additional information in the appraiser’s work file.

Question 8

8 of 83USPAP specifically requires all of the following to be retained in an appraiser’s workfile, except:

Answer 8

a complete legal description of the subject property.

Question 9

9 of 83Mass Appraisal

Answer 9

The process of valuing a universe of properties as of a given date using standard methodology, employing common data, and allowing for statistical testing. (USPAP)

Question 10

10 of 83Steven, a certified residential appraiser, has received a notice from his state licensing boar They have received a complaint about an appraisal he completed 3 years ago. The board wants to see his report and workfile as a part of their investigation. Steven refuses to turn over the report and workfile, stating “This information is confidential to my client, and the client has not authorized me to surrender this material.” Is Steven violating USPAP?

Answer 10

Yes. According to the RECORD KEEPING RULE, the appraiser must make the workfile available to state appraiser regulatory agencies.

Question 11

11 of 83Report

Answer 11

Any communication, written or oral, of an appraisal or appraisal review that is transmitted to the client or a party authorized by the client upon completion of an assignment. (USPAP)

Question 12

12 of 83The scope of work disclosed in an appraisal report must

Answer 12

be the scope of work that was actually performed by the appraiser

Question 13

13 of 83You complete an appraisal, and 6 months later the client requests an update of the opinion of value. What is the client asking you to perform?

Answer 13

A new appraisal assignment

Question 14

14 of 83While appraising a residence, an appraiser found that the subject property had sold two years before the effective date of the appraisal. According to USPAP, the appraiser must:

Answer 14

analyze the sale because it occurred within three years of the effective date.

Question 15

15 of 83USPAP requirements do NOT apply in the performance of:

Answer 15

a broker price opinion.

Question 16

16 of 83Signature

Answer 16

Personalized evidence indicating authentication of the work performed by the appraiser and the acceptance of the responsibility for contents, analyses, and the conclusions in the report. (USPAP)

Question 17

17 of 83Samantha, a newly-certified appraiser, is striking out on her own. She has a new office, and awaits orders from new clients. When the phone rings, she eagerly answers. Ron, a homeowner, states he needs an appraisal of his home “as soon as possible.” Price is no object…words near and dear to Samantha’s heart.

After obtaining the address, Samantha rushes to Ron’s house and collects her check. While performing the inspection, Samantha notes a woman sitting in the kitchen. Assuming this woman is Ron’s wife, Samantha finishes the inspection, returns to her office, and finishes the appraisal.

Three days later Ron’s wife calls Samanth “Do you have the results of the appraisal?” Samantha tells her the value.

Has Samantha violated USPAP?

Question 18

18 of 83You are asked to review an appraisal report and limit your review to only the income approach to value. Is this permissible, and why or why not?

Answer 18

Yes, the subject of an appraisal review assignment may be all or part of a report, the workfile, or a combination.

Question 19

19 of 83Which entity sets the minimum standards for licensing and certification of appraisers, which states are required to adopt?

Answer 19

The Appraiser Qualifications Board

Question 20

20 of 83Intended User

Answer 20

The client and any other party as identified, by name or type, as users of the appraisal or appraisal review report by the appraiser, based on communication with the client at the time of the assignment. (USPAP)

Question 21

21 of 83Which federal government entity oversees the activities of The Appraisal Foundation?

Answer 21

Appraisal Subcommittee

Question 22

22 of 83Which of the following is always presumed to be prior to the appraisal’s effective date and is the opinion of the appraiser, not the client?

Answer 22

Exposure time

Question 23

23 of 83When performing an appraisal review, an appraiser may form an opinion of all of the following except:

Answer 23

the competency of another appraiser.

Question 24

24 of 83When MUST an appraiser prepare a workfile for an appraisal?

Answer 24

Before issuing a report or communicating assignment results.

Question 25

25 of 83You are a certified residential appraiser, and are working with a supervising certified general appraiser on an industrial appraisal.. Your supervisor is a certified general appraiser with 25 years’ experience appraising shopping centers, industrial facilities, and office buildings. You and the supervisor sign the commercial reports you have been working on.

While inspecting the subject property you note a patch of blackened grass behind the building. The back patch is near some overturned, open barrels. You made detailed notes and took several photos. Your report has a detailed section about your concerns.

Your supervisor is concerned about your report. She told you the client, a major bank, would not be happy about a report that details dying grass. The supervisor tells you to remove that section of the report.

You have trepidations, but your supervisor threatened not to work with you anymore unless you “remove the offensive section.”

What should you do?

Answer 25

Do not sign the report because deleting the section about possible contamination will create a misleading report

Question 26

26 of 83Exposure Time

Answer 26

The estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal. Exposure time is a retrospective opinion based on an analysis of past events assuming a competitive and open market. (USPAP)

Question 27

27 of 83You sign an appraisal report, and your supervisor also signs it on the line as a “reviewer.” Who is responsible for the contents of this report?

Answer 27

Both of you equally

Question 28

28 of 83Appraisal Standards Board (ASB)

Answer 28

An independent board of the APPRAISAL FOUNDATION, which writes, amends, and interprets USPAP. The ASB is composed of up to seven appraisers appointed by the Foundation’s Board of Trustees. The ASB holds public meetings throughout the year to interpret and amend USPAP.

Question 30

31 of 83Which of the following statements about the scope of work is TRUE?

Answer 30

Appraisers have flexibility as well as responsibility in determining the scope of work.

Question 31

32 of 83Once established, the scope of work

Answer 31

is flexible and can change as needed in the course of the assignment.

Question 32

33 of 83When appraising a single-unit residence, the appraiser is required by USPAP to analyze all sales of the subject property that occurred in the previous:

Answer 32

3 years.

Question 33

34 of 83What are the USPAP obligations for valuation services outside of appraisal practice?

Answer 33

Appraisers must ensure that clients understand their role and are not misled.

Question 34

35 of 83Which of the following is not a requirement of a written Appraisal Report?

Answer 34

It must contain a copy of the deed

Question 35

36 of 83Which entity has final authority over USPAP and any changes to USPAP?

Answer 35

The Appraisal Standards Board

Question 36

37 of 83You are asked to appraise a property that has sold 3 times in the last year. According to USPAP, you must analyze:

Answer 36

all of the sales.

Question 37

38 of 83USPAP requires the appraiser to reconcile

Answer 37

both the results of the different approaches to value and the data and analysis used in each one.

Question 38

39 of 83Intended Use

Answer 38

The use(s) of an appraiser’s reported appraisal or appraisal review assignment results, as identified by the appraiser based on communication with the client at the time of the assignment. (USPAP)

Question 39

40 of 83Certification

Answer 39

A part of an appraisal report in which the appraiser certifies that the work was completed according to the applicable standards.

Question 40

41 of 83Workfile

Answer 40

Documentation necessary to support an appraiser’s analyses, opinions, and conclusions. (USPAP)

Question 41

42 of 83Supervising appraiser Tom reviews his trainee’s video of the subject property without ever making an on-site visit. He then certifies that he personally inspected the property in the appraisal report. Has Tom violated USPAP?

Answer 41

Yes, because a “personal inspection” translates into an on-site visit, not merely a video review.

Question 42

43 of 83Feasibility Analysis

Answer 42

A study of the cost-benefit relationships of an economic endeavor. (USPAP)

Question 43

44 of 83You are asked to perform a “condition and marketability report.” You are not asked to give a value conclusion as part of the assignment. You:

Answer 43

must follow USPAP since this is a valuation service that is part of appraisal practice, even though no conclusion of value was requested.

Question 44

45 of 83Trevor performs an appraisal of the defeasible fee estate of a cemetery. The effective date is March 18, 2019. The date of the report is also March 18, 2019. Trevor receives a notice that his appraisal will be used in an eminent domain court case involving the subject property. Trevor provides expert witness testimony on this case on July 15, 2022. Final disposition of the court case occurs on September 20, 2024. How long must Trevor retain this workfile?

Answer 44

9/20/2026 12:00:00 AM

Question 45

46 of 83One of the questions an appraiser needs to answer in determining the scope of work in an appraisal assignment is

Answer 45

how much data is needed?

Question 46

47 of 83USPAP achieves legal authority through:

Answer 46

adoption, citation, or implementation by government agencies.

Question 47

48 of 83USPAP applies to these professionals:

Answer 47

Appraisers required by law, regulation, agreement or choice to be USPAP compliant.

Question 48

49 of 83Assignment Results

Answer 48

An appraiser’s opinions or conclusions developed specific to an assignment. Assignment results include an appraiser’s: • Opinions or conclusions developed in an appraisal assignment, not limited to value; • Opinions or conclusions, developed in an appraisal review assignment, not limited to an opinion about the quality of another appraiser’s work; or • Opinions or conclusions developed when performing a valuation service other than an appraisal or appraisal review assignment. (USPAP)

Question 49

50 of 83What term is defined as the type and extent of research and analysis in an assignment?

Answer 49

Scope of work

Question 50

51 of 83Peter is appraising a factory on two acres of land in a rural are The factory is a unique structure for that region; there are no comparable sales known to Peter after an exhaustive search for dat The client has requested a value in use appraisal of the fee simple interest of the subject property. Three weeks after submitting the report, the client calls. They are demanding that Peter develop an opinion of exposure time for the subject property. Is Peter required to develop an opinion of exposure time in this situation?

Answer 50

No. STANDARD 1 of USPAP only requires a development of exposure time when exposure time is a component of the value definition being use

Question 51

52 of 83Effective Date

Answer 51

1. The date on which the analyses, opinions, and advice in an appraisal, review, or consulting service apply. 2. In a lease document, the date upon which the lease goes into effect.

Question 52

53 of 83Who determines the appropriate scope of work to be used in an appraisal assignment?

Answer 52

The appraiser

Question 53

54 of 83Appraisal

Answer 53

(Noun) The act or process of developing an opinion of value; an opinion of value. (Adjective) of or pertaining to appraising and related functions such as appraisal practice or appraisal services. (USPAP)

Question 54

55 of 83The key distinction between appraisal practice and valuation services is:

Answer 54

Only appraisers may offer services that are considered appraisal practice.

Question 55

56 of 83Extraordinary Assumption

Answer 55

An assignment-specific assumption, as of the effective date regarding uncertain information used in an analysis, which, if found to be false, could alter the appraiser’s opinions or conclusions. Uncertain information might include physical, legal, or economic characteristics of the subject property; or conditions external to the property, such as market conditions or trends; or the integrity of the data used in an analysis. (USPAP)

Question 56

57 of 83Samantha performs an appraisal of a shopping center. The effective date is January 4, 201 The date of the report is January 8, 201 Samantha receives a notice that her appraisal will be used in a court case involving the subject property. She provides expert testimony in this case on November 10, 201 Final disposition of the court case occurs on April 26, 2020. How long must Samantha retain this workfile?

Answer 56

1/8/2024 12:00:00 AM

Question 57

58 of 83Which of the following is not an important element in the scope of work decision?

Answer 57

Sales history

Question 58

59 of 83Scope of Work

Answer 58

The type and extent of research and analyses in an appraisal or appraisal review assignment. (USPAP)

Question 59

60 of 83You performed an appraisal two years ago that was never used in a loan or in any other manner by the client. She now requests that you destroy the workfile and any records of the appraisal. Is this ethical?

Answer 59

No, USPAP does not permit appraisers to destroy written records prior to five years after preparation for any reason

Question 60

61 of 83Parties who receive copies of an appraisal report

Answer 60

Do not become intended users unless originally specified at the time of the assignment

Question 61

62 of 83Competence

Answer 61

The state of having the requisite or adequate ability or qualities to perform the specific assignment and produce credible assignment results. The comment on the COMPETENCY RULE of the Uniform Standards of Professional Appraisal Practice states that competency applies to factors such as, but not limited to, an appraiser’s familiarity with a specific type of property, a market, a geographic area, an analytical method, intended use, and specific laws and regulations that apply to the assignment.

Question 62

63 of 83Appraisal Review

Answer 62

(Noun) The act or process of developing an opinion about the quality of another appraiser’s work that was performed as part of an appraisal or appraisal review assignment; (Adjective) of or pertaining to an opinion about the quality of another appraiser’s work that was performed as part of an appraisal or appraisal review assignment. (USPAP)

Question 63

64 of 83What is the essential difference between the Appraisal Report and the Restricted Appraisal Report?

Answer 63

The level of detail

Question 64

65 of 83You recently appraised a single-family residence for the owner, who is selling the property. A potential buyer has just contacted you to obtain a copy of the appraisal report. What should you do?

Answer 64

Do not give the buyer a copy because the seller is your client, and therefore he is the only one who can authorize you to disclose the information

Question 65

66 of 83What process does an appraiser use to value a universe of properties using standard methods and common data?

Answer 65

Mass appraisal

Question 66

67 of 83The appraisal process brings order out of chaos. What must an appraiser consider when determining the scope of work for an appraisal assignment?

Answer 66

the assignment elements

Question 67

68 of 83Which of the following statements about an appraisal review is FALSE?

Answer 67

An appraisal review is a review of an appraised property.

Question 68

69 of 83Which of the following statements about an extraordinary assumption is false?

Answer 68

It is contrary to what exists, but is assumed for the purpose of analysis.

Question 69

69 of 83Which of the following statements about an extraordinary assumption is false?

Question 70

70 of 83Which RULE is violated by a misleading or fraudulent appraisal review report?

Answer 70

ETHICS RULE

Question 71

71 of 83You have reviewed the appraisal of a home in a suburban area that was performed for an estate. The effective date was the date of inspection. You note in your review report that the proper effective date should have been the date of death of the deceased, and submit the review to your client. Two weeks later the client calls you. They thank you for the review, and note that they cannot reach the original appraiser. They need the appraisal very soon, and ask that, as part of the review process, you alter the appraisal report under review and sign the certification. What should you do?

Answer 71

Do not sign the report, and explain that the review process is separate and distinct from the appraisal under review.

Question 72

72 of 83What does the effective date establish in written appraisal reports?

Answer 72

Whether the opinion is current, retrospective, or prospective

Question 73

73 of 83Appraisal Foundation

Answer 73

A not-for-profit educational organization established by the appraisal profession in the United States in 1987. It is dedicated to the advancement of professional valuation and responsible for establishing, improving, and promoting the Uniform Standards of Professional Appraisal Practice (USPAP).

Question 74

74 of 83Select one of the following valuation specialists who is violating the USPAP Ethics Rule?

Answer 74

Jack Platt acts as an advocate for his client.

Question 75

75 of 83Which term is defined as an assignment condition established by applicable law or regulation, which precludes an appraiser from complying with a part of USPAP?

Answer 75

jurisdictional exception.

Question 76

76 of 83Robert accepts an assignment to appraise a split-level home in a town 100 miles south of his office. While he is not thoroughly familiar with that area, Robert rationalizes: “I have appraised houses like this one for 20 years. How hard could it be?”

When Robert pulls up to the house, he notices the subject is in a gated community. Robert had rarely appraised a property in a gated community. As Robert inspected the interior of the subject he noted several items and finishes with which he was not familiar: marble floor coverings; upscale, built-in freezers; and a wine cellar. As Robert exits the back door, he notices the subject property fronts on a river. While this river does not connect directly with the ocean, it does connect with a network of streams that do, ultimately lead to the ocean.

Robert is quite concerne He has had no experience appraising a house with some of the features he has seen; and he has never appraised waterfront property. He feels overwhelme What should Robert do?

Answer 76

Robert should call the client as soon as possible and explain the situation. Robert is not able to complete the assignment competently. If he feels he can gain the required level of competency, and the client allows him, then Robert may proceed with the assignment.

Question 77

77 of 83Sam’s client wants to save money on the appraisal assignment. The client orders an oral report and tells Sam, “I don’t want bells and whistles. Just tell me the value, and I’ll pay half what a written report would cost.” Sam should tell the client that the

Answer 77

format (oral vs written) has no bearing on the appraisal work to be performed

Question 78

78 of 83Which of the following appraisers is the only one complying with the USPAP ETHICS RULE?

Answer 78

Bill Jones publicly advertises his services as a licensed appraiser.

Question 79

79 of 83When an appraiser uses a hypothetical condition:

Answer 79

the hypothetical condition must be clearly and conspicuously disclosed in the report.

Question 80

80 of 83Hypothetical Condition

Answer 80

A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results but is used for the purpose of analysis. Hypothetical conditions are contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. (USPAP)

Question 81

81 of 83When the reviewer’s scope of work includes developing his or her own opinion of value:

Answer 81

The reviewer is not required to replicate the steps completed by the original appraiser.

Question 82

82 of 83One example of a situation in which a hypothetical condition may be used is:

Answer 82

when appraising proposed construction as of a current date.

Question 83

83 of 83Which of the following is true of an appraiser who signs a real estate appraisal report that was prepared by a trainee appraiser?

Answer 83

The appraiser must accept full responsibility for the appraisal and the contents of the report