USPAP Ch 7 Quiz Flashcards
The requirements of STANDARD 1 can be used as a checklist by an appraiser who is developing a real property appraisal.
TRUE
Which statement is FALSE regarding STANDARD 1?
It covers real and personal property appraisal development.
When does a series of minor errors potentially result in a USPAP violation?
When the series of errors affects the credibility of the results
If a mortgage borrower receives a copy of an appraisal report from a mortgage lender as a result of disclosure requirements:
This does not make the borrower an intended user
An appraiser’s client wishes to remain anonymous, and asks the appraiser not to include client’s identity in an appraisal report. What should the appraiser do?
Omit the client’s identity from the report but document the client’s identity in the workfile
Which statement is TRUE regarding exposure time?
It is always assumed to precede the effective date of the appraisal.
Exposure time is:
An opinion developed by an appraiser
When appraising a property with proposed improvements, what type of value opinion is permitted by USPAP?
Both current and prospective values
What is the primary purpose of an appraiser making an inspection of the subject property?
To collect information about characteristics that are relevant to value
An example of a relevant property characteristic that could affect a real property appraisal assignment would be:
The fact that the subject property is affected by an easement
When an appraiser provides a current value opinion on a proposed new building, he or she is utilizing a(an) _____________ that the proposed improvements are completed as of the effective date of the appraisal.
Hypothetical condition
An extraordinary assumption may be used in an assignment only if:
Required to develop credible results
An unacceptable assignment condition would be a condition that:
Limits the scope of work to the extent that the value opinion is not credible, Precludes an appraiser’s impartiality, Limits report content, resulting in a misleading report.
A local lender has asked me to appraise a 5-acre portion of a 62-acre parcel. Am I permitted to comply with this request?
SR 1-2(e)(v) states that the subject of an assignment may be a physical segment of a property. However, appraisers must also comply with any laws, regulations, guidelines, or other assignment conditions that might apply. As an example of applicable assignment conditions, Fannie Mae and Freddie Mac do not permit an appraiser to value only a physical segment of a property.
I was recently asked to perform a real estate appraisal assignment, but the individual who contacted my firm was not the client and indicated that the client could not be identified. Can I agree to perform this assignment and comply with USPAP?
No. Standards Rule 1-2 states in part that an appraiser must identify the client and other intended users. This does not preclude a third party, acting as an agent for the client, from ordering the appraisal.