USPAP Ch 7 Quiz Flashcards

1
Q

The requirements of STANDARD 1 can be used as a checklist by an appraiser who is developing a real property appraisal.

A

TRUE

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2
Q

Which statement is FALSE regarding STANDARD 1?

A

It covers real and personal property appraisal development.

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3
Q

When does a series of minor errors potentially result in a USPAP violation?

A

When the series of errors affects the credibility of the results

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4
Q

If a mortgage borrower receives a copy of an appraisal report from a mortgage lender as a result of disclosure requirements:

A

This does not make the borrower an intended user

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5
Q

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?

A

Omit the client’s identity from the report but document the client’s identity in the workfile

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6
Q

Which statement is TRUE regarding exposure time?

A

It is always assumed to precede the effective date of the appraisal.

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7
Q

Exposure time is:

A

An opinion developed by an appraiser

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8
Q

When appraising a property with proposed improvements, what type of value opinion is permitted by USPAP?

A

Both current and prospective values

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9
Q

What is the primary purpose of an appraiser making an inspection of the subject property?

A

To collect information about characteristics that are relevant to value

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10
Q

An example of a relevant property characteristic that could affect a real property appraisal assignment would be:

A

The fact that the subject property is affected by an easement

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11
Q

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.

A

Hypothetical condition

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12
Q

An extraordinary assumption may be used in an assignment only if:

A

Required to develop credible results

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13
Q

An unacceptable assignment condition would be a condition that:

A

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.

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14
Q

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?

A

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.

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15
Q

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?

A

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.

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16
Q

When developing a sales comparison approach under USPAP:

A

The appraiser must analyze such data as are available to indicate a value conclusion

17
Q

Which statement is TRUE regarding USPAP and the three approaches to value?

A

An assignment condition may require an appraiser to develop an approach that he or she would otherwise consider unnecessary.

18
Q

When analyzing the subject property’s sales history in a real property appraisal assignment, an appraiser is required by USPAP to analyze ______________.

A

All sales of the subject property that occurred within three years prior to the effective date of the appraisal

19
Q

When analyzing listings of the subject property in a real property appraisal assignment, USPAP requires an appraiser to analyze, at a minimum, ____________.

A

Current listings

20
Q

I am currently appraising an office building that was transferred 18 months ago by a deed in lieu of foreclosure. Am I required to analyze this transaction?

A

Yes. All sales of the appraised property within the three-year time period must be analyzed; this includes transfers in lieu of foreclosure and foreclosure sales. See Standards Rule 1-5(b). Also, seeFAQ 254, “Sales History Analysis for Deed in Lieu of Foreclosure.”

21
Q

Does Standards Rule 1-5 require an appraiser to analyze the sales history for the comparable sales?

A

No. This Standards Rule addresses only the subject property. Analysis of the sales history of the comparable properties may be an assignment condition required by certain clients or client groups, but it is not a USPAP requirement.

22
Q

I know that USPAP requires an appraiser to develop a reconciliation of the approaches to value that are used in an assignment. Does USPAP require the appraiser to reconcile the data used in each approach to value?

A

Yes. This is required by USPAP Standards Rule 1-6.

23
Q

The process of reconciliation entails ___________.

A

Careful consideration of the quality and quantity of data

24
Q

In the development of an appraisal, the appraiser is required to:

A

Not commit a substantial error that significantly affects the appraisal

25
Q

When is it necessary to analyze prior listings of the subject property in a real property appraisal assignment?

A

When such analysis is relevant to the current assignment