Page 1 of 137
RESIDENTIAL APPRAISER PRACTICE
EXAM|QUESTIONS AND ANSWERS WITH
RATIONALE|GRADED A+|100%
CORRECT|2026 UPDATE
Q1. The Uniform Standards of Professional Appraisal Practice
(USPAP) is established by:
A) Fannie Mae
B) The Appraisal Foundation
C) FIRREA
D) Each individual state
Answer: B
Rationale: The Appraisal Foundation is the Congressionally
authorized source of USPAP. States adopt USPAP as the minimum
standard for licensed/certified appraisers. USPAP is updated
,Page 2 of 137
annually, with major changes typically effective January 1 of
each year.
Q2. An appraiser is asked to appraise a property they
appraised five years ago. The appraiser does not remember
the previous assignment. This is:
A) A violation of the Competency Rule
B) Permissible if the appraiser has current competency – prior
work does not automatically disqualify
C) Always prohibited
D) Only allowed with a new license
Answer: B
Rationale: The Competency Rule requires competency for the
specific assignment. Prior work does not create a prohibited
interest unless the appraiser has a financial interest. However,
the appraiser must disclose the prior assignment if known.
,Page 3 of 137
Q3. An appraiser accepts an assignment to appraise a unique
log home. The appraiser has never appraised a log home
before. Under the Competency Rule, the appraiser must:
A) Decline the assignment
B) Disclose lack of experience to the client, take steps to gain
competency (research, consult other appraisers), and complete
the assignment competently
C) Complete the assignment without disclosure
D) Charge double for the learning curve
Answer: B
Rationale: Competency can be acquired through research,
education, or consultation. Disclosure is required. The appraiser
may complete the assignment after gaining competency.
, Page 4 of 137
Q4. The Ethics Rule of USPAP requires an appraiser to:
A) Only work for lenders
B) Not perform assignments in a biased or fraudulent manner,
disclose any personal interests, and maintain confidentiality
C) Always use the cost approach
D) Only accept highest fee
Answer: B
Rationale: Ethics Rule covers impartiality, disclosure of prior
services, confidentiality, and prohibition against accepting
assignments with undisclosed fees contingent on value.
Q5. An appraiser is asked to provide a "target value" before
completing the appraisal. The appraiser knows the property is
likely worth less than the requested target. Under the Ethics
Rule, the appraiser should:
A) Provide the target value to get the assignment
RESIDENTIAL APPRAISER PRACTICE
EXAM|QUESTIONS AND ANSWERS WITH
RATIONALE|GRADED A+|100%
CORRECT|2026 UPDATE
Q1. The Uniform Standards of Professional Appraisal Practice
(USPAP) is established by:
A) Fannie Mae
B) The Appraisal Foundation
C) FIRREA
D) Each individual state
Answer: B
Rationale: The Appraisal Foundation is the Congressionally
authorized source of USPAP. States adopt USPAP as the minimum
standard for licensed/certified appraisers. USPAP is updated
,Page 2 of 137
annually, with major changes typically effective January 1 of
each year.
Q2. An appraiser is asked to appraise a property they
appraised five years ago. The appraiser does not remember
the previous assignment. This is:
A) A violation of the Competency Rule
B) Permissible if the appraiser has current competency – prior
work does not automatically disqualify
C) Always prohibited
D) Only allowed with a new license
Answer: B
Rationale: The Competency Rule requires competency for the
specific assignment. Prior work does not create a prohibited
interest unless the appraiser has a financial interest. However,
the appraiser must disclose the prior assignment if known.
,Page 3 of 137
Q3. An appraiser accepts an assignment to appraise a unique
log home. The appraiser has never appraised a log home
before. Under the Competency Rule, the appraiser must:
A) Decline the assignment
B) Disclose lack of experience to the client, take steps to gain
competency (research, consult other appraisers), and complete
the assignment competently
C) Complete the assignment without disclosure
D) Charge double for the learning curve
Answer: B
Rationale: Competency can be acquired through research,
education, or consultation. Disclosure is required. The appraiser
may complete the assignment after gaining competency.
, Page 4 of 137
Q4. The Ethics Rule of USPAP requires an appraiser to:
A) Only work for lenders
B) Not perform assignments in a biased or fraudulent manner,
disclose any personal interests, and maintain confidentiality
C) Always use the cost approach
D) Only accept highest fee
Answer: B
Rationale: Ethics Rule covers impartiality, disclosure of prior
services, confidentiality, and prohibition against accepting
assignments with undisclosed fees contingent on value.
Q5. An appraiser is asked to provide a "target value" before
completing the appraisal. The appraiser knows the property is
likely worth less than the requested target. Under the Ethics
Rule, the appraiser should:
A) Provide the target value to get the assignment
