USPAP 15-Hour Course Exam Questions
and Solutions
Introduction to USPAP
Purpose and Scope of USPAP
• USPAP is essential for appraisers and users of appraisal services.
• The primary goal of USPAP is to promote and maintain a high level of public trust in
appraisal practice.
• Appraisers must comply with USPAP when obligated by law or regulation.
• USPAP applies to both tangible and intangible properties.
• An appraiser must identify the capacity in which they are performing.
Compliance and Obligations
• An appraiser may prepare an appraisal assignment in conformance with USPAP due to
agreement with the client, law or regulation, or voluntary choice.
• Appraisers providing services outside of traditional appraisal practice must be cautious
not to mislead clients about their role.
• Even when not legally required, individuals acting as appraisers should still comply with
USPAP.
• When engaged to teach an appraisal course, an appraiser must adhere to the parts of
USPAP that generally apply to appraisal practice.
Structure and Authorities within USPAP
Appraisal Practices Board (APB)
• The APB was established in 2010 as an independent board.
• APB is a private entity and does not have the authority to enforce USPAP requirements.
• The APB focuses on providing guidance voluntarily.
• Boards within The Appraisal Foundation (TAF) include the Board of Trustees (BOT),
Appraisal Standards Board (ASB), Appraisal Qualifications Board (AQB), and APB.
Regulatory Bodies and Responsibilities
• States have sole jurisdiction and authority over appraisers.
, • The ASB is responsible for developing, interpreting, and amending USPAP.
• Advisory opinions are not part of USPAP but serve as reference material.
• The Appraisal Subcommittee (ASC) maintains the official National Registry of state-
certified and licensed appraisers.
• State appraisal regulatory committees issue credentials to individual appraisers.
Key Concepts in USPAP
Ethical Standards and Responsibilities
• Ethical obligations under USPAP apply to individual appraisers.
• Bias is strictly prohibited in appraisal practice.
• Advocating for any party or issue is never permitted.
• Appraisers must disclose the number of times they have appraised a property within the
prior 3 years.
• Confidential information received from the client must not be disclosed to third parties
without authorization.
Professional Conduct and Competency
• Competency is fundamental to the definition of an appraiser.
• Appraisers must possess the necessary competency before accepting an assignment.
• Lack of knowledge or experience should be disclosed to the client before accepting an
assignment.
• Appraisers are not allowed to create a workfile after transmitting the report to the client.
Retention of Workfiles
Retention Period
Appraiser testified in court in Jan 2010, final disposition in Sept 2011.
Minimum retention period for workfile: April 2014.
Appropriate Workfile Arrangement
Posting workfile on the internet is not appropriate under USPAP.
Trainer appraisers have same obligations as certified/licensed appraisers.
Peer Definition and Scope of Work
and Solutions
Introduction to USPAP
Purpose and Scope of USPAP
• USPAP is essential for appraisers and users of appraisal services.
• The primary goal of USPAP is to promote and maintain a high level of public trust in
appraisal practice.
• Appraisers must comply with USPAP when obligated by law or regulation.
• USPAP applies to both tangible and intangible properties.
• An appraiser must identify the capacity in which they are performing.
Compliance and Obligations
• An appraiser may prepare an appraisal assignment in conformance with USPAP due to
agreement with the client, law or regulation, or voluntary choice.
• Appraisers providing services outside of traditional appraisal practice must be cautious
not to mislead clients about their role.
• Even when not legally required, individuals acting as appraisers should still comply with
USPAP.
• When engaged to teach an appraisal course, an appraiser must adhere to the parts of
USPAP that generally apply to appraisal practice.
Structure and Authorities within USPAP
Appraisal Practices Board (APB)
• The APB was established in 2010 as an independent board.
• APB is a private entity and does not have the authority to enforce USPAP requirements.
• The APB focuses on providing guidance voluntarily.
• Boards within The Appraisal Foundation (TAF) include the Board of Trustees (BOT),
Appraisal Standards Board (ASB), Appraisal Qualifications Board (AQB), and APB.
Regulatory Bodies and Responsibilities
• States have sole jurisdiction and authority over appraisers.
, • The ASB is responsible for developing, interpreting, and amending USPAP.
• Advisory opinions are not part of USPAP but serve as reference material.
• The Appraisal Subcommittee (ASC) maintains the official National Registry of state-
certified and licensed appraisers.
• State appraisal regulatory committees issue credentials to individual appraisers.
Key Concepts in USPAP
Ethical Standards and Responsibilities
• Ethical obligations under USPAP apply to individual appraisers.
• Bias is strictly prohibited in appraisal practice.
• Advocating for any party or issue is never permitted.
• Appraisers must disclose the number of times they have appraised a property within the
prior 3 years.
• Confidential information received from the client must not be disclosed to third parties
without authorization.
Professional Conduct and Competency
• Competency is fundamental to the definition of an appraiser.
• Appraisers must possess the necessary competency before accepting an assignment.
• Lack of knowledge or experience should be disclosed to the client before accepting an
assignment.
• Appraisers are not allowed to create a workfile after transmitting the report to the client.
Retention of Workfiles
Retention Period
Appraiser testified in court in Jan 2010, final disposition in Sept 2011.
Minimum retention period for workfile: April 2014.
Appropriate Workfile Arrangement
Posting workfile on the internet is not appropriate under USPAP.
Trainer appraisers have same obligations as certified/licensed appraisers.
Peer Definition and Scope of Work
