National Uniform Standards of Professional Appraisal Practice (USPAP) Course

An appraiser has been asked to complete an appraisal assignment. The fee is to be paid when when the loan closes. According to USPAP, may the appraiser accept the assignment under the conditions?

Yes

No

Correct!

Wrong!

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Does USPAP require an appraiser to certify in the appraisal report that he or she has not been coerced to provide predetermined results?

No

Yes

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

The Appraisal Subcommittee

The Appraisal Standards Board

Each State has their own committee to oversee and develop USPAP

The Coalition of Valuation Experts

Correct!

Wrong!

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Who is in charge of developing the Scope of Work for an appraisal assignment?

The bank who has engaged the appraiser

USPAP

The appraiser depending on his/her license level

The assignment itself dictates the Scope of Work

Correct!

Wrong!

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According to USPAP, which of the following statements is considered to be Confidential Information?

The client gives you information that nobody else has access to and asks that you keep it confidential.

Downloaded material off the MLS that only real estate professionals have access to.

All of these answers are correct.

A broker gives you sale information and tells you it is confidential. However, other brokers in town also have the same information.

Correct!

Wrong!

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In the __________, data and analyses provided by a reviewer to support a different opinion must be consistent with the reporting standard.

Appraisal Review Report

Appraisal Report

Restricted Use Report

Correct!

Wrong!

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In a real property Appraisal Report, an appraiser must ____ the rationale and reasoning for the opinion highest and best use.

State

Certify

Summerize

Certify and State

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

1976

2008

2010

1997

Correct!

Wrong!

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An appraiser commits a USPAP violation and is being investigated. Who is conducting the investigation?

The State Appraisal Board where the violation was commited

The Appraisal Foundation

The Appraisal Subcommittee

The local police department

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?

All sales should be analyzed

Only the most recent sale should be analyzed

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

Correct!

Wrong!

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Bob contacts ABC Bank and requests a refinance on his home. Bob pays ABC Bank for the appraisal fee. ABC Bank then engages you to do the appraisal and you finish the appraisal soon after. One week passes and Bob calls you to discuss the appraisal. Is this allowed per USPAP?

Yes. Bob paid for the appraisal, so he is an intended user.

Yes. Bob is involved in the process and it is his house, the owner of the property has a right to all information.

No. Although Bob paid for the service, your client is ABC Bank and all correspondence must be though them.

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

Scope of Work

Ethics

Correct!

Wrong!

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

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.

Including the wrong flood map.

Correct!

Wrong!

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Can a client ask an appraiser to alter a photograph to remove a picture of the homeowner's dog in the yard?

Yes, as long as the change is not misleading.

No. An appraiser can not alter photos.

Yes, if the appraiser gets written permission from the State Board.

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?

Yes

No

Correct!

Wrong!

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My State’s appraiser regulatory agency sent out a newsletter that says a due date is an assignment condition, and that failing to adhere is a violation of USPAP. Is this true?

No

Yes

Correct!

Wrong!

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A real estate broker preforms a BPO (Brokers Price Opinion). Does this need to conform to USPAP?

No

Yes

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?

This is a new assignment

Revise the report date but leave the effective date unchanged.

No revisions are allowed

Correct!

Wrong!

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Can an appraiser make an assumption in a report on something that is known to be false?

Yes, if a Extraordinary Assumption is used.

Yes, if a Hypothetical Condition is used.

No

Correct!

Wrong!

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

The Appraisal Institute

From Certified Appraisers

The Appraisal Foundation yearly fundraiser

Congress

Correct!

Wrong!

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

3

7

5

USPAP does not address this

Correct!

Wrong!

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

True

False

Correct!

Wrong!

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Mary is an appraiser and a real estate broker. A client asks Mary to provide a valuation service as a real estate broker. What part of USPAP must Mary adhere to?

The Ethics Rule

All of USPAP

Standards 1 & 2

None, however Mary must not misrepresent her role

Correct!

Wrong!

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What is the main purpose of USPAP?

To promote and maintain public trust

Fulfilling Federal Mandates

Set new standards to improve the profession

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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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?

Yes

No

Correct!

Wrong!

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What Rule mandates that an appraiser must have a workfile in existence prior to the issuance of any report is contained in which part of USPAP?

Ethics Rule

Competency Rule

None of the above

Record Keeping Rule

Correct!

Wrong!

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According to USPAP, the appraiser's primary responsibility is:

Be financially successful

Provide a great product for clients

All of the above

Protect the trust of the public

Correct!

Wrong!

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Which statement is true regarding an appraisers obligation to disclose prior services performed on properties previously used as comparables?

The appraiser must disclose this prior to involvement.

The appraiser cannot accept assignments related to this property.

Using a property as a comparable sale is not considered a prior service, therefore no disclosure is required.

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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An appraiser has used data that was over three years old in the appraisal. What USPAP Rule has been violated?

Ethics Rule

Recent Data Rule

None

Scope of Work Rule

Correct!

Wrong!

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Does a "jurisdictional exception" allow an appraiser to disregard the requirements of USPAP?

No

Yes

Correct!

Wrong!

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In USPAP "other communiations" are:

All of these are correct.

Binding and enforceable

Advisory Opinions

An essential part of USPAP

Correct!

Wrong!

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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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Is it acceptable to readdress or transfer a completed appraisal report?

No

Yes

Correct!

Wrong!

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

Standard 5

Standard 4

Standard 7 & 8

Standard 3

Correct!

Wrong!

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Which of the following require a signed certification in the report?

Only reports that are going to financial institutions

None of these answers are correct

All reports in which USPAP applies.

All reports with the exception of Restricted Use Reports

Correct!

Wrong!

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

Standards 8 & 9

Standards 5 & 6

Standards 7 & 8

Standard 10

Correct!

Wrong!

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Where does the Appraisal Standards Board get funding to operate?

Congress

Appraisers

The Clinton Foundation

The Appraisal Institute

Correct!

Wrong!

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

Standards 9 & 10

Standard 4

Standards 1 & 2

Standard 7

Correct!

Wrong!

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I have been asked by a client to prepare a Restricted Appraisal Report that he plans to provide to another intended user. Does USPAP allow me to use this report option in such a circumstance?

No

Yes

Correct!

Wrong!

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_________is defined as an opinion of the amount of time it might take to sell a real or personal property interest.

Hypothetical Condition

Marketing Time

Exposure Time

None of these answers are correct.

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 Appraiser Qualification Board

The Appraisal Foundation

The Association of Appraisers

Correct!

Wrong!

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When an appraiser is preparing for any service that is not an appraisal or an appraisal review, he or she must _________ and insert a certification statement in the report.

state the intended use

disclose any prior service within the last three years

report consumer resources

Correct!

Wrong!

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Are personal property appraisers required to comply with USPAP?

No

Yes

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?

The Exposure Time

The Final Value Opinion

All of these are correct.

The Highest & Best Use

Correct!

Wrong!

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Herman has accepted an assignment from a client to review another appraisers work. What Standard in USPAP must be adhered to in regards to the review assignment?

Standard 3

Standard 5 & 6

Standard 10

Standard 2

Correct!

Wrong!

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USPAP is developed by _________.

A conglomerate of government agencies.

The Appraisal Institute

The Appraisal Foundation

The Appraisal Standard Board

Correct!

Wrong!

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