USPAP Ch 8 Quiz

Question 1

The use of standard appraisal reporting forms

Answer 1

Is not required by STANDARD 2

Question 2

STANDARD 2 sets forth requirements for

Answer 2

Appraisal report content

Question 3

What is the essential difference between the two reporting options?

Answer 3

The content and level of information

Question 4

The two written report options stated in Standards Rule 2-2 are

Answer 4

Appraisal Report and Restricted Appraisal Report

Question 5

Which of the following is NOT required by USPAP to be in an Appraisal Report?

Answer 5

Client’s specific name. f the client wishes to remain anonymous, the appraiser may omit the client’s name(s) from the report, but must document the client’s name(s) in his or her workfile.

Question 6

When reporting the results of an appraisal, dates that must be included are

Answer 6

Effective date and report date

Question 7

An appraiser’s client requests anonymity and asks that their identity not appear in the Appraisal Report that is prepared for the assignment. What must the appraiser do?

Answer 7

Use care not to violate the Confidentiality section of the ETHICS RULE, State in the report that the client’s identity has been withheld at the client’s request, Document the identity of the client in the workfile.

Question 8

In an Appraisal Report, the scope of work used to develop the appraisal must be

Answer 8

summarized

Question 9

An appraiser determines that the cost approach is not necessary in an appraisal assignment, and therefore does not develop the approach. In the Restricted Appraisal Report for the assignment, what must the appraiser do?

Answer 9

State the reason for the exclusion of the approach

Question 10

An appraiser is preparing a Restricted Appraisal Report in a situation where there are intended users in addition to the client. Which statement is true regarding this situation?

Answer 10

These additional intended users must be identified in the report by name.

Question 11

All written appraisal reports must contain

Answer 11

a signed certification

Question 12

When an extraordinary assumption is used in an appraisal, the report must state the extraordinary assumption and

Answer 12

state that its use may have affected the assignment results

Question 13

What is the purpose of including a signed certification in an appraisal report?

Answer 13

For the appraiser to acknowledge his or her ethical obligations

Question 14

Which of the following best describes bias in appraisal practice?

Answer 14

It is not permitted

Question 15

According to USPAP, any appraiser who signs any part of an appraisal report is required to

Answer 15

sign a certification

Question 16

To the extent possible and appropriate, oral appraisal reports for real property must address the substantive matters that apply to a(n)

Answer 16

Appraisal Report

Question 17

An appraiser provides an oral report of a real property appraisal. Which statement is CORRECT?

Answer 17

The appraiser must add a signed and dated certification to her appraisal workfile.

Question 18

After an assignment has been completed and the report has been delivered, an appraiser may be asked to “readdress” (transfer) the report to another party. Does USPAP allow an appraiser to “readdress” (transfer) a report by altering it to indicate a new recipient as the client or additional intended user when the original report was completed for another party?

Answer 18

No. Once a report has been prepared for a named client(s) and any other identified intended users and for an identified intended use, the appraiser cannot “readdress” (transfer) the report to another party.

Question 19

An appraiser was engaged by Client A to appraise a property. The appraiser delivered the appraisal report to Client A. The client has decided not to pursue the transaction that generated the need for the appraisal report. The appraiser is contacted by Client B. Client B requests that the original report be readdressed (transferred) by replacing Client A’s name with Client B’s name in the report. Is this acceptable?

Answer 19

No. Simply changing the client name on the report cannot change or replace the original appraiser-client relationship that was established with Client A. Therefore, this action is misleading.

Question 20

An appraiser was engaged by Client A to appraise a property. The appraiser delivered the appraisal report to Client A. The client has decided not to pursue the transaction that generated the need for the appraisal report. The appraiser is contacted by Client B. Client B requests that the original report be readdressed (transferred) by replacing Client A’s name with Client B’s name in the report. How can this circumstance be handled according to Standards?

Answer 20

The appraiser can consider Client B’s request as a new assignment. In so doing, the appraiser may establish a new appraiser-client relationship with Client B and appraise the property for this new client.

Question 21

Why might Client B want their name on the report that was completed for Client A?

Answer 21

Client B may want to establish an appraiser-client relationship because it provides all the rights, obligations and liabilities such a relationship places on the appraiser.

Question 22

Under what circumstances can an appraiser agree to perform an assignment to appraise a property for a prospective client when that appraiser has previously completed an appraisal of the same property for another client?

Answer 22

Agreeing to perform the assignment from the subsequent prospective client is not prohibited by USPAP, assuming appropriate disclosure is made to the client before being engaged and any existing confidential information is handled properly.

Question 23

An appraiser completes an appraisal for Bank A. Two months later, he is contacted by Bank B, who asks him to “readdress” his prior report to them. Which statement is TRUE about the appraiser’s USPAP obligations?

Answer 23

He is not permitted to “readdress” the report to Bank B.

Question 24

If a client requests a more current valuation on a property that was the subject of a prior assignment, this is a(n) ____________.

Answer 24

new assignment

Question 25

USPAP requires an appraiser to obtain a release from a previous client before appraising the same property for a new client.

Answer 25

FALSE

Question 26

I currently work as a trainee in an appraisal firm. I contribute significant real property appraisal assistance to appraisal assignments performed by other appraisers in the firm, but do not sign the certification or report. I understand my name must be stated in the certification. Must the certification include a description of my assistance?

Answer 26

No. A description of your assistance or contribution to the assignment is not required in the certification. However, in accordance with Standards Rule 2-2(a)(ix), the extent of the assistance must be summarized (or stated, in accordance with Standards Rule 2-2(b)(xi)) within the report. This required disclosure could be included within the certification, but it could also be included in some other section of the report.

Question 27

I am employed at a firm where my reports are reviewed by a supervisory appraiser. The supervisory appraiser recently asked me to make changes to a report that resulted in a value opinion with which I do not agree. I am not comfortable signing the amended report. What are my obligations under USPAP?

Answer 27

If the report does not represent your own opinions and conclusions, you must not sign the report or the certification. If appraisers are required to make changes with which they do not agree, they cannot truly certify that they are reporting their own personal analyses, opinions, or conclusions.

Question 28

A mortgage client hired an appraiser to prepare an appraisal on a one-unit property. He asked that she orally discuss her value opinion with him prior to transmitting the report. The appraiser completed her analysis and telephoned the client with her conclusions. The client was indignant and objected strongly to the value conclusion, indicating that the “figure” would not help his client’s objectives. He further indicated that there would be no need to provide a written report. What are the appraiser’s obligations under USPAP?

Answer 28

Clearly, reporting of the value conclusion to the client is an oral report. A summary of such a report, along with the appraiser’s signed and dated certification must be included in the workfile. Reference is made to Standards Rule 2-4, which states that an oral appraisal report must address the substantive matters required in an Appraisal Report (see Standards Rule 2-2(a)). The client does not have to take delivery of the written report. The appraiser has met the assignment conditions by completing the appraisal, providing an oral report, and maintaining a workfile for the assignment. The workfile must be retained for the specified period required by USPAP

Question 29

If a supervising appraiser makes changes to a trainee’s appraisal report which the trainee does not agree with, the trainee should

Answer 29

not sign the certification

Question 30

A trainee assisted a senior appraiser in an appraisal assignment, but the trainee appraiser does not sign a certification. The trainee’s name is stated in the certification as having provided significant appraisal assistance. Is a description of the trainee’s assistance also required to be in the certification?

Answer 30

No