PA Appraisers License-Exam Questions and Answers
(Graded A).
INTRODUCTION:
This package is designed for candidates preparing for the Pennsylvania State Board of Certified Real
Estate Appraisers licensing examination for Certified Residential or Certified General Appraiser. The 110
questions are based on the required national Uniform State Certification Examination (USPAP-based)
content and Pennsylvania-specific statutes and regulations (Title 49, Chapter 36, and the Pennsylvania
Appraisers Certification Act). Content covers USPAP (Uniform Standards of Professional Appraisal
Practice), real property concepts and principles, valuation procedures, approaches to value (Sales
Comparison, Cost, Income), property description, highest and best use analysis, and Pennsylvania-specific
legal and ethical requirements for appraisal practice.
QUESTIONS: (110 TOTAL)
1. According to the 2024-2025 edition of USPAP, what is an appraiser's obligation regarding the
confidential nature of assignment results?
A. Results may be disclosed to anyone who pays a fee.
B. Results are confidential and may only be disclosed to the client and persons specifically authorized by
the client, or as required by law.
C. Results must be published in the local MLS to ensure transparency.
D. Confidentiality expires six months after the report is delivered.
Answer: B
Rationale: USPAP Ethics Rule, Confidentiality section, states that an appraiser must protect the
confidential nature of the appraiser-client relationship. Assignment results must be kept confidential
and may only be disclosed to the client, persons specifically authorized by the client, state appraiser
regulatory agencies, and third parties as may be authorized by due process of law. This is a fundamental
ethical obligation.
2. In the Sales Comparison Approach, the adjustment process is performed in a specific sequence. Which
of the following represents the correct order for adjusting comparable sales?
A. Financing terms, Conditions of sale, Market conditions, Location, Physical characteristics
B. Market conditions, Location, Physical characteristics, Financing terms, Conditions of sale
C. Physical characteristics, Location, Financing terms, Conditions of sale, Market conditions
D. Conditions of sale, Financing terms, Location, Physical characteristics, Market conditions
Answer: A
Rationale: The standard sequence for adjustments is: 1) Financing terms (if atypical), 2) Conditions of
sale (e.g., non-arm's length transaction), 3) Market conditions (time adjustment for changing market), 4)
,Location, and 5) Physical characteristics. This sequence is taught in appraisal education to ensure logical
and consistent analysis, moving from transactional to property-specific factors.
3. Under Pennsylvania law (Act 71 of 2009 and related regulations), which entity is responsible for the
licensure and certification of real estate appraisers?
A. The Pennsylvania Association of Realtors®
B. The Pennsylvania State Board of Certified Real Estate Appraisers under the Bureau of Professional and
Occupational Affairs
C. The Pennsylvania Department of Revenue
D. The Appraisal Subcommittee (ASC)
Answer: B
Rationale: The Pennsylvania State Board of Certified Real Estate Appraisers, operating under the Bureau
of Professional and Occupational Affairs (BPOA) within the Department of State, is the sole state
authority responsible for implementing the Pennsylvania Appraisers Certification Act, including
examination, licensure, certification, and discipline of appraisers in the Commonwealth.
4. When developing an appraisal for a single-family residential property using the Cost Approach, what
is the correct method for estimating accrued depreciation?
A. Subtract the estimated land value from the sales price of a comparable property.
B. Multiply the reproduction cost new by the effective age divided by the total economic life.
C. Add the cost of all physical improvements to the land value.
D. Compare the subject's rental income to market rents.
Answer: B
Rationale: In the Cost Approach, accrued depreciation is often estimated using the age-life method:
(Effective Age / Total Economic Life) x Reproduction Cost New = Accrued Depreciation. This method
estimates depreciation from all causes (physical, functional, external). Option A is part of the Sales
Comparison Approach. Option C describes the summation method, not depreciation. Option D relates to
the Income Approach.
5. Which USPAP standard establishes requirements for the development of an appraisal and requires an
appraiser to analyze the effect on value of current and anticipated market conditions?
A. Standards Rule 1-1
B. Standards Rule 2-2
C. Standards Rule 3-1
D. Standards Rule 4-2
Answer: A
,Rationale: Standards Rule 1-1(c) of USPAP requires that in developing an appraisal, an appraiser must
analyze the effect on value of current and anticipated market conditions. This is part of the development
requirements for real property appraisal under Standards Rule 1.
6. In Pennsylvania, what is the minimum education requirement to become a Certified Residential
Appraiser under current AQB criteria?
A. 75 hours of qualifying education
B. 150 hours of qualifying education
C. 200 hours of qualifying education
D. 300 hours of qualifying education
Answer: C
Rationale: As of the current AQB Criteria, a Certified Residential Appraiser must complete 200 hours of
qualifying education. This includes specific courses in basic principles, procedures, and more advanced
topics including the sales comparison approach, cost approach, income approach, report writing, and
case studies.
7. The principle of value that states that value is created and maintained when contrasting, opposing, or
interacting elements are in proper balance or equilibrium is known as:
A. Principle of Supply and Demand
B. Principle of Conformity
C. Principle of Balance
D. Principle of Externalities
Answer: C
Rationale: The Principle of Balance states that value is created and maintained when contrasting,
opposing, or interacting elements are in proper balance or equilibrium. This includes the balance
between the property's components and its economic environment. The Principle of Conformity relates
to consistency with neighborhood standards. Supply and Demand is a separate economic principle.
8. Under USPAP, when must an appraiser comply with the Record Keeping Rule?
A. Only for federally related transactions
B. For all appraisal and appraisal review assignments
C. Only when requested by the client
D. Only for assignments exceeding $500,000 in value
Answer: B
Rationale: USPAP's Record Keeping Rule requires appraisers to maintain a workfile for each appraisal or
appraisal review assignment. This applies to all assignments, not just federally related transactions or
, high-value assignments. The workfile must be retained for a period of at least five years after
preparation or delivery of the report, or two years after final disposition of any judicial proceeding.
9. Which of the following is considered external depreciation in the Cost Approach?
A. A roof that has exceeded its expected physical life
B. Poor room layout or functional inadequacy
C. Proximity to a noisy airport or environmental hazard
D. Deferred maintenance requiring immediate repair
Answer: C
Rationale: External depreciation (also called economic or locational obsolescence) is caused by factors
outside the property itself, such as environmental hazards, adverse neighborhood changes, or proximity
to negative externalities like airports, landfills, or high-crime areas. Physical depreciation (A, D) relates to
the physical condition of the property. Functional obsolescence (B) relates to design or utility issues
within the structure.
10. Under Pennsylvania's Act 71 of 2009, which of the following constitutes a violation of the
Pennsylvania Appraisers Certification Act?
A. An appraiser failing to respond to a subpoena from the State Board
B. An appraiser completing 30 hours of continuing education in a biennial cycle
C. An appraiser using the sales comparison approach for a residential property
D. An appraiser maintaining a workfile for six years
Answer: A
Rationale: Section 36.35(a) of the Pennsylvania Code outlines grounds for discipline, including failing to
respond to a subpoena or lawful demand from the State Board. Using appropriate appraisal methods (C)
and maintaining adequate records (D) are compliance activities. The required continuing education is 28
hours per biennial cycle (not 30), but this specific number alone would not typically constitute a
violation unless the minimum 28 hours were not met.
11. In the Income Approach, when calculating Net Operating Income (NOI), which expense is typically
NOT deducted from effective gross income?
A. Property taxes
B. Mortgage debt service
C. Insurance premiums
D. Utilities
Answer: B
(Graded A).
INTRODUCTION:
This package is designed for candidates preparing for the Pennsylvania State Board of Certified Real
Estate Appraisers licensing examination for Certified Residential or Certified General Appraiser. The 110
questions are based on the required national Uniform State Certification Examination (USPAP-based)
content and Pennsylvania-specific statutes and regulations (Title 49, Chapter 36, and the Pennsylvania
Appraisers Certification Act). Content covers USPAP (Uniform Standards of Professional Appraisal
Practice), real property concepts and principles, valuation procedures, approaches to value (Sales
Comparison, Cost, Income), property description, highest and best use analysis, and Pennsylvania-specific
legal and ethical requirements for appraisal practice.
QUESTIONS: (110 TOTAL)
1. According to the 2024-2025 edition of USPAP, what is an appraiser's obligation regarding the
confidential nature of assignment results?
A. Results may be disclosed to anyone who pays a fee.
B. Results are confidential and may only be disclosed to the client and persons specifically authorized by
the client, or as required by law.
C. Results must be published in the local MLS to ensure transparency.
D. Confidentiality expires six months after the report is delivered.
Answer: B
Rationale: USPAP Ethics Rule, Confidentiality section, states that an appraiser must protect the
confidential nature of the appraiser-client relationship. Assignment results must be kept confidential
and may only be disclosed to the client, persons specifically authorized by the client, state appraiser
regulatory agencies, and third parties as may be authorized by due process of law. This is a fundamental
ethical obligation.
2. In the Sales Comparison Approach, the adjustment process is performed in a specific sequence. Which
of the following represents the correct order for adjusting comparable sales?
A. Financing terms, Conditions of sale, Market conditions, Location, Physical characteristics
B. Market conditions, Location, Physical characteristics, Financing terms, Conditions of sale
C. Physical characteristics, Location, Financing terms, Conditions of sale, Market conditions
D. Conditions of sale, Financing terms, Location, Physical characteristics, Market conditions
Answer: A
Rationale: The standard sequence for adjustments is: 1) Financing terms (if atypical), 2) Conditions of
sale (e.g., non-arm's length transaction), 3) Market conditions (time adjustment for changing market), 4)
,Location, and 5) Physical characteristics. This sequence is taught in appraisal education to ensure logical
and consistent analysis, moving from transactional to property-specific factors.
3. Under Pennsylvania law (Act 71 of 2009 and related regulations), which entity is responsible for the
licensure and certification of real estate appraisers?
A. The Pennsylvania Association of Realtors®
B. The Pennsylvania State Board of Certified Real Estate Appraisers under the Bureau of Professional and
Occupational Affairs
C. The Pennsylvania Department of Revenue
D. The Appraisal Subcommittee (ASC)
Answer: B
Rationale: The Pennsylvania State Board of Certified Real Estate Appraisers, operating under the Bureau
of Professional and Occupational Affairs (BPOA) within the Department of State, is the sole state
authority responsible for implementing the Pennsylvania Appraisers Certification Act, including
examination, licensure, certification, and discipline of appraisers in the Commonwealth.
4. When developing an appraisal for a single-family residential property using the Cost Approach, what
is the correct method for estimating accrued depreciation?
A. Subtract the estimated land value from the sales price of a comparable property.
B. Multiply the reproduction cost new by the effective age divided by the total economic life.
C. Add the cost of all physical improvements to the land value.
D. Compare the subject's rental income to market rents.
Answer: B
Rationale: In the Cost Approach, accrued depreciation is often estimated using the age-life method:
(Effective Age / Total Economic Life) x Reproduction Cost New = Accrued Depreciation. This method
estimates depreciation from all causes (physical, functional, external). Option A is part of the Sales
Comparison Approach. Option C describes the summation method, not depreciation. Option D relates to
the Income Approach.
5. Which USPAP standard establishes requirements for the development of an appraisal and requires an
appraiser to analyze the effect on value of current and anticipated market conditions?
A. Standards Rule 1-1
B. Standards Rule 2-2
C. Standards Rule 3-1
D. Standards Rule 4-2
Answer: A
,Rationale: Standards Rule 1-1(c) of USPAP requires that in developing an appraisal, an appraiser must
analyze the effect on value of current and anticipated market conditions. This is part of the development
requirements for real property appraisal under Standards Rule 1.
6. In Pennsylvania, what is the minimum education requirement to become a Certified Residential
Appraiser under current AQB criteria?
A. 75 hours of qualifying education
B. 150 hours of qualifying education
C. 200 hours of qualifying education
D. 300 hours of qualifying education
Answer: C
Rationale: As of the current AQB Criteria, a Certified Residential Appraiser must complete 200 hours of
qualifying education. This includes specific courses in basic principles, procedures, and more advanced
topics including the sales comparison approach, cost approach, income approach, report writing, and
case studies.
7. The principle of value that states that value is created and maintained when contrasting, opposing, or
interacting elements are in proper balance or equilibrium is known as:
A. Principle of Supply and Demand
B. Principle of Conformity
C. Principle of Balance
D. Principle of Externalities
Answer: C
Rationale: The Principle of Balance states that value is created and maintained when contrasting,
opposing, or interacting elements are in proper balance or equilibrium. This includes the balance
between the property's components and its economic environment. The Principle of Conformity relates
to consistency with neighborhood standards. Supply and Demand is a separate economic principle.
8. Under USPAP, when must an appraiser comply with the Record Keeping Rule?
A. Only for federally related transactions
B. For all appraisal and appraisal review assignments
C. Only when requested by the client
D. Only for assignments exceeding $500,000 in value
Answer: B
Rationale: USPAP's Record Keeping Rule requires appraisers to maintain a workfile for each appraisal or
appraisal review assignment. This applies to all assignments, not just federally related transactions or
, high-value assignments. The workfile must be retained for a period of at least five years after
preparation or delivery of the report, or two years after final disposition of any judicial proceeding.
9. Which of the following is considered external depreciation in the Cost Approach?
A. A roof that has exceeded its expected physical life
B. Poor room layout or functional inadequacy
C. Proximity to a noisy airport or environmental hazard
D. Deferred maintenance requiring immediate repair
Answer: C
Rationale: External depreciation (also called economic or locational obsolescence) is caused by factors
outside the property itself, such as environmental hazards, adverse neighborhood changes, or proximity
to negative externalities like airports, landfills, or high-crime areas. Physical depreciation (A, D) relates to
the physical condition of the property. Functional obsolescence (B) relates to design or utility issues
within the structure.
10. Under Pennsylvania's Act 71 of 2009, which of the following constitutes a violation of the
Pennsylvania Appraisers Certification Act?
A. An appraiser failing to respond to a subpoena from the State Board
B. An appraiser completing 30 hours of continuing education in a biennial cycle
C. An appraiser using the sales comparison approach for a residential property
D. An appraiser maintaining a workfile for six years
Answer: A
Rationale: Section 36.35(a) of the Pennsylvania Code outlines grounds for discipline, including failing to
respond to a subpoena or lawful demand from the State Board. Using appropriate appraisal methods (C)
and maintaining adequate records (D) are compliance activities. The required continuing education is 28
hours per biennial cycle (not 30), but this specific number alone would not typically constitute a
violation unless the minimum 28 hours were not met.
11. In the Income Approach, when calculating Net Operating Income (NOI), which expense is typically
NOT deducted from effective gross income?
A. Property taxes
B. Mortgage debt service
C. Insurance premiums
D. Utilities
Answer: B
