USPAP 2016/2017 2 | Appraisal Tests

Standard 6 deals with what topic?

The development and communication of a mass appraisal

The development and communication of a real property appraisal

This standard has been retired.

The development and communication of a personal property appraisal

Correct!

Wrong!

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

3

7

USPAP does not address this

5

Correct!

Wrong!

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Who is responsible for determining the Scope of Work on an appraisal assignment?

USPAP

None of these are correct

The Appraiser

The Client

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 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.

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

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

report consumer resources

disclose any prior service within the last three years

Correct!

Wrong!

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A client asks an appraiser to appraise a nursing home but the appraiser has never appraised a nursing home before and does not know how. Can the appraiser accept this assignment?

Yes, as long as the client has paid for the appraisal.

No! This is a direct violation of the ethics rule.

Yes! Although the appraiser must disclose his lack of knowledge and experience to the client prior to accepting the assignment. Additionally, he must take necessary steps to complete the assignment competently.

Yes! Accepting an assignment for which you are not competent is how appraisers gain experience.

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 if the sales are at market (not a foreclosure)

Only the most recent sale should be analyzed

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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Is it true that Advisory Opinions are not part of USPAP?

False

True

Correct!

Wrong!

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For a real property appraisal, 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 utilized within each approach to value?

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?

If the loan does not close, USPAP does not apply

Yes

No

Correct!

Wrong!

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Are personal property appraisers required to comply with USPAP?

No

Yes

Correct!

Wrong!

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Which of the following would involve a Standard 3 review?

formulating an opinion on another appraiser's work

The reported value was MORE than the loan amount

Secondary data may be unreliable

The reported value was LESS than the loan amount

Correct!

Wrong!

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Which USPAP rule acts as a "severability clause"?

Ethics Rule

Jurisdictional Exception Rule

Scope of Work Rule

Departure Rule

Correct!

Wrong!

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

False

True

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?

Standards 1 & 2

All of USPAP

None, however Mary must not misrepresent her role

The Ethics Rule

Correct!

Wrong!

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

Competency

Record Keeping

Ethics

Scope of Work

Correct!

Wrong!

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

8

7

10

12

Correct!

Wrong!

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

All of the above

Provide a great product for clients

Protect the trust of the public

Be financially successful

Correct!

Wrong!

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

False

True

Correct!

Wrong!

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

Yes

No

Correct!

Wrong!

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

No

Yes

Correct!

Wrong!

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Which of the following statements best describes a hypothetical condition?

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.

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

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 2

Standard 10

Standard 3

Standard 5 & 6

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?

None of the above

Record Keeping Rule

Competency Rule

Ethics Rule

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.

Exposure Time

None of these answers are correct.

Hypothetical Condition

Marketing Time

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

Yes

No

Correct!

Wrong!

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

Standards 7 & 8

Standard 10

Standards 5 & 6

Standards 8 & 9

Correct!

Wrong!

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Is turnaround time an assignment condition?

No

Yes

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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I was recently asked to perform a real property appraisal assignment, but the
individual that contacted my firm was not the client and indicated that the client
could not be identified. Can I accept this assignment and comply with USPAP?

Yes

No

Correct!

Wrong!

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True or False : USPAP requires you to make an adjustment to the subject if it is being sold under unusual financing conditions.

True

False

Correct!

Wrong!

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Identifiable tangible objects that are considered by the general public as being "personal" for example, furnishings, artwork, machinery and equipment. This is the definition of what?

Chattel

Furnished Property

Personal Property

Correct!

Wrong!

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

Ethics

Independent

Competency

Integrity

Correct!

Wrong!

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

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

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

All of these answers are correct.

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

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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Which of the following is an example of a hypothetical condition?

Appraising a property as if it were free of any contamination when it is known to be contaminated

Appraising proposed improvements such as new construction or additions, as if they existed as of a current date, when they do not.

Appraising a site as if the zoning were different

All of these answers are examples of Hypothetical Conditions

Correct!

Wrong!

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

None of these answers are correct

All reports with the exception of Restricted Use Reports

All reports in which USPAP applies.

Only reports that are going to financial institutions

Correct!

Wrong!

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The interests, benefits, and rights inherent in the ownership of real estate is defined as:

Leased Fee Ownership

Personal Property

Real Property

Ownership Grant

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?

Yes

No

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.

Omitting the Highest & Best Use.

Not including the engagement letter in the addenda.

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.

Certify and State

State

Certify

Summerize

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

5

7

Correct!

Wrong!

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

The Coalition of Valuation Experts

The Appraisal Standards Board

The Appraisal Subcommittee

Each State has their own committee to oversee and develop USPAP

Correct!

Wrong!

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The first step in reviewing appraisal work is:

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

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

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

Drinking coffee due to the boredom of the report.

Correct!

Wrong!

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Which of the following statements best describes a feasibility analysis?

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.

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

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

Correct!

Wrong!

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

Binding Requirements

Appraisal Practice

Restricted Appraisal

Assignment Results

Correct!

Wrong!

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What do USPAP Standards 9 & 10 deal with?

The requirements for the development and communication of a business or intangible asset appraisal

These standards have been retired.

The requirements for the development and communication of a mass appraisal

The requirements for the development and communication of a real property appraisal

Correct!

Wrong!

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The effective date of an appraisal can be:

The date of inspection

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

The date that the report is delivered

Correct!

Wrong!

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