USPAP Ch 12 Quiz Flashcards
An appraisal that takes into consideration the full effect of known environmental contamination would be considered:
“As-is”
Which of the following statements BEST describes Advisory Opinions?
They are not part of USPAP but illustrate applicability and provide guidance.
In an appraisal report, the use of terms that reflect a scale such as “good” or “average”:
Should include explanation that provides context
The competency required to appraise subsidized housing extends beyond typical residential appraisal competency.
TRUE
An appraiser agrees to provide a market value appraisal for a client. Which statement is true about this situation?
It is essential that the appraiser identify the source of the definition of value to be used.
An appraiser provides raw AVM output to a client. This is:
Not an appraisal, and no workfile is required. If an appraiser modifies the AVM output, or uses the AVM in developing his or her own opinion of value, then it is an appraisal.
If a borrower attempts to engage an appraiser to complete an appraisal for a federally-regulated lending transaction, the appraiser should disclose:
That the lender must engage the appraiser, and that the appraiser cannot later “readdress” the report
Regulations and guidelines that apply to an appraisal for a federally-regulated lending transaction are:
Assignment conditions
What does the effective date of an appraisal establish?
The context of the value opinion
What type of appraisal would be indicated by the phrase, “On September 10, 2012, the market value of the subject property was $200,000”?
Retrospective
According to AO-33, the results of discounted cash flow (DCF) analysis should:
Be tested and checked for errors and reasonableness
Developing an opinion of value of a property as of a specified future date is:
A prospective appraisal
