National Uniform Standards of Professional Appraisal Practice (USPAP) Course

Is the following statement true or false? An appraiser can prepare a retrospective appraisal, with an effective date of value as of 10 years ago, even if that appraiser wasn't an appraiser at that time.

False

True

Correct!

Wrong!

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If a client wishes to remain anonymous in the appraisal report, what should the appraiser do?

The appraiser can omit the client from all areas of the report and the work-file.

None of these are correct

The client must always be identified

The client can be omitted from the report, but must be documented in the work-file.

Correct!

Wrong!

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How many Standards are there in USPAP? (trick question)

10

12

8

7

Correct!

Wrong!

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The first step in reviewing appraisal work is:

Double checking the value opinion to see if it is close to the loan value.

Knowing the intended use and purpose of the appraisal being reviewed.

Drinking coffee due to the boredom of the report.

Ensuring the appraiser is legal to do appraisals in the respective State.

Correct!

Wrong!

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The party or parties who engage, by employment or contract, an appraiser in a specific
assignment is called a _____________.

Lead Appraiser

Intended User

Client

Correct!

Wrong!

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Which of the following would involve a Standard 3 review?

The reported value was LESS than the loan amount

The reported value was MORE than the loan amount

formulating an opinion on another appraiser's work

Secondary data may be unreliable

Correct!

Wrong!

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Are personal property appraisers required to comply with USPAP?

No

Yes

Correct!

Wrong!

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A month after you submit the appraisal to your client, he asks you to discount your fee because his loan did not close. Does USPAP allow this?

Yes

No

If the loan does not close, USPAP does not apply

Correct!

Wrong!

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What organization sets the Congressionally-authorized standards and qualifications for real estate appraisers, and provides voluntary guidance on recognized valuation methods and techniques for all valuation professionals?

The Appraisal Subcommittee

The Appraisal Foundation

The Appraiser Qualification Board

The Association of Appraisers

Correct!

Wrong!

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What year was the Appraisal Practices Board (APB) created?

2008

1976

1997

2010

Correct!

Wrong!

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In my role as an appraiser, I perform many assignments that are not appraisal or appraisal review. Does the SCOPE OF WORK RULE apply to these assignments?

No

Yes

Correct!

Wrong!

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A few weeks ago I performed an appraisal for a lender client. I was recently contacted by an individual who claims that she is a review appraiser that has been hired by the lender, and wanted to ask me some questions about my appraisal. Can I discuss my appraisal with her?

Yes, with permission from the client.

No, the review appraiser is not your client.

Correct!

Wrong!

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Which of the following statements best describes a hypothetical condition?

An assumption made regarding a physical characteristic of the property which has no influence on value.

An assumption made contrary to fact, but which is assumed for the purpose of discussion, analysis, or formulation of opinions

An assumption directly related to a specific assignment, which if found to be false, could alter the appraiser's opinions or conclusions.

Correct!

Wrong!

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Is maintaining only electronic workfiles (PDF copies) prohibited by USPAP?

No

Yes

Correct!

Wrong!

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The ______ Rule sets forth the requirements for integrity, impartiality, objectivity, independent judgement and ethical content.

Integrity

Competency

Independent

Ethics

Correct!

Wrong!

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The function of the "Statements" in USPAP are;

Provide much needed clarification

To clarify all the appraisal standards

To assist in interpreting and elaborating USPAP issues

All of these answers are correct

Correct!

Wrong!

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When an appraiser makes a minor revision to a completed report that does not affect the value, what must he or she do with the effective date and the report date?

No revisions are allowed

This is a new assignment

Revise the report date but leave the effective date unchanged.

Correct!

Wrong!

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I was asked by a client to provide an opinion of the market rent for a commercial property. Is such an assignment considered an appraisal?

No

Yes

Correct!

Wrong!

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I am completing a market value appraisal. I use standard pre-printed residential report forms that ask for a neighborhood marketing time. Does marketing time on these forms mean the same thing as exposure time as it is used in USPAP?

No

Yes

Correct!

Wrong!

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USPAP is developed by _________.

A conglomerate of government agencies.

The Appraisal Standard Board

The Appraisal Foundation

The Appraisal Institute

Correct!

Wrong!

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Is turnaround time an assignment condition?

Yes

No

Correct!

Wrong!

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If I will be conducting an auction of the subject property after the appraisal, does this have to be disclosed?

No

Yes

Correct!

Wrong!

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Where does funding for the Appraisal Subcommittee and The Appraisal Foundation come from?

Congress

The Appraisal Institute

The Appraisal Foundation yearly fundraiser

From Certified Appraisers

Correct!

Wrong!

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An appraiser's opinions and conclusions developed specific to an assignment is called what?

Assignment Results

Binding Requirements

Restricted Appraisal

Appraisal Practice

Correct!

Wrong!

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True or False: Oral reporting DOES NOT require a signature.

True

False

Correct!

Wrong!

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True or False: The APB has authority to enforce the requirements of USPAP.

False

True

Correct!

Wrong!

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Joe, a local real estate appraiser, is asked to perform an appraisal that will be used in a court case regarding a tax appeal. Joe is to be paid based on a percentage of tax savings gained. Which of the following is true?

Joe is not in violation of the Ethics Rule of USPAP.

Joe must not accept this assignment due to the payment method. Payment depending on the outcome of the court case is in direct violation of the Management Section of the Ethics Rule.

Joe can accept this assignment under one condition. He must not have a present or prospective interest in the property.

Correct!

Wrong!

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I have an assignment that involves a tract of land that is improved with two structures. However, the client has requested that I appraise the underlying land and only one of the two structures, without mentioning the other structure. Is it ethical to not disclose the presence of the second structure?

No

Yes

Correct!

Wrong!

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An appraiser advertises to prospective clients that if their loans do not close, they do not have to pay the appraisal fee. Which of the following is true?

The appraiser is in violation of the Management Section of the Ethics Rule of USPAP.

There is no problem with this arrangement as long as it is disclosed in the report.

According to Standard 7, USPAP has been violated.

Correct!

Wrong!

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True or False: Standards 4 & 5 are not applicable to any part of the appraisal process.

True

False

Correct!

Wrong!

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According the USPAP, how many years must an appraiser keep an appraisal workfile?

5

3

USPAP does not address this

7

Correct!

Wrong!

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True or False: An appraiser must obtain the necessary competency prior to accepting the assignment.

True

False

Correct!

Wrong!

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Representing the cause or interest of another, even if that cause or interest does not necessarily coincide with one's own beliefs, opinions, conclusions, or recommendations. This statement best describes what appraisal term?

Conclusion of Opinions

Support Doctrine

Advocacy

None of these answers are correct

Correct!

Wrong!

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Which of the examples below an example of "substantial error of omission?"

Including the wrong flood map.

An appraiser making a mistake on how many units are in an apartment complex he is valuing.

Not including the engagement letter in the addenda.

Omitting the Highest & Best Use.

Correct!

Wrong!

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Which of the following statements best describes a feasibility analysis?

A study of the cost-benefit relationship of an economic endeavor.

A special consultation that ends in an appraisal report being delivered with various values.

A forecast of the demand for a certain type of real estate project in the future which includes an estimate of the square footage that could be absorbed and the rents that could be charged.

Correct!

Wrong!

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When performing a market value appraisal on an improved property, an appraiser develops an opinion of highest and best use, exposure time, site value, and indicated values by the Sales Comparison Approach and Cost Approaches, as well as a final value opinion. Which of the following are considered Assignment Results?

All of these are correct.

The Exposure Time

The Final Value Opinion

The Highest & Best Use

Correct!

Wrong!

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Can a pending sale be used as a comparable if the fact that the sale is pending is disclosed in the appraisal report?

No

Yes

Correct!

Wrong!

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True or False: USPAP is written by a government entity.

True

False

Correct!

Wrong!

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I am currently working in an appraisal firm as a trainee. As part of my training I contribute significant real property appraisal assistance in appraisal assignments performed by other appraisers in the firm, but I do not sign the appraisal report or the certification. I understand that my name must be stated in the certification.

Must the certification include a description of my assistance?

Yes

No

Correct!

Wrong!

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What standard (s) establish requirements for the development and communication of a real property appraisal?

Standard 4

Standards 9 & 10

Standard 7

Standards 1 & 2

Correct!

Wrong!

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What standard (s) establish requirements for the development and communication of an appraisal review?

Standard 5

Standard 7 & 8

Standard 4

Standard 3

Correct!

Wrong!

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The effective date of an appraisal can be:

A past date, the current date, or a future date

The date that the report is delivered

The date of inspection

Correct!

Wrong!

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If the subject property, such as a single-family dwelling, has sold more than once in the three (3) years prior to the effective date of the appraisal, am I required to analyze all of the sales, or just the most recent sale?

Only the most recent sale should be analyzed

All sales should be analyzed

Only if the sales are at market (not a foreclosure)

Correct!

Wrong!

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The __________________ Rule preserves the balance of USPAP if a portion is contrary to law or public policy of a jurisdiction.

True Law Exception

Jurisdictional Exception

Ethics

Scope of Work

Correct!

Wrong!

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The ASB changed the definition of assignment results to specify that physical characteristics are not assignment results. Does this mean that physical characteristics are not confidential?

No

Yes

Correct!

Wrong!

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What is the main purpose of USPAP?

To promote and maintain public trust

Set new standards to improve the profession

Fulfilling Federal Mandates

Correct!

Wrong!

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_______ has complete authority over the development of USPAP within The Appraisal Foundation.

Each State has their own committee to oversee and develop USPAP

The Coalition of Valuation Experts

The Appraisal Standards Board

The Appraisal Subcommittee

Correct!

Wrong!

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True or False: If an appraiser is engaged to complete a Restricted Use Report, his work-file must reflect that of a full Appraisal Report.

False

True

Correct!

Wrong!

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Prior to accepting an assignment, an appraiser must disclose any service he provided regarding the subject property for a period of ________ years

2

3

7

5

Correct!

Wrong!

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The ___________ Rule establishes the work-file requirements for appraisal and appraisal review assignments.

Competency

Record Keeping

Scope of Work

Ethics

Correct!

Wrong!

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