USPAP 15 HOUR COURSE ACTUAL
ASSESSMENT PAPER 2026 COMPLETE
QUESTIONS AND SOLUTIONS GRADED A+
◉ If a client wants to know the current value as though repaired on a
house that had severe flooding, what type of assignment condition
should the appraiser use?
Answer: Hypothetical Condition: the property as if repaired does not
currently exist
◉ A client has repaired a property that was damaged due to
flooding. Many neighboring properties in the same situation soon
developed mold problems. The client currently shows no evidence of
mold, what type of assignment condition should you use if the client
wants a current value opinion?
Answer: Extraordinary assumption: as of the date of value, the fact
of the potential condition (i.e. mold) is unknown, and it is reasonable
to believe the current condition is true.
◉ An appraiser performed the cost approach in an appraisal of a
new warehouse. The buyer paid 1.9 million, the appraised value was
2 million. Identify each of the three components: the reproduction
,cost developed by the appraiser, the 1.9 million, and the 2 million.
(Fact, estimate of fact, and opinion)
Answer: The reproduction cost developed by the appraiser is an
estimate of fact.
The 1.9 million is the price as a stated fact.
The 2 million value is the appraiser opinion.
◉ I accept assignments from an Appraisal Management Company
that has informed me they are an authorized agent for the lenders
they represent.. As the AMC is not my client, they have requested
that I only identify the lender they are representing as the client.
USPAP says the appraisers client is the party who engages the
appraiser. Is it ethical to omit the AMC's name as the client on my
reports?
Answer: Yes, if the AMC is acting as an agent for a lender, identifying
only the lender as your client is acceptable. However, the appraiser
must be aware of situations where disclosure of the AMC might be
required by law, regulation, or the secondary market.
◉ A client requests "a number" over the phone in advance of the
written appraisal report. How should an appraiser handle this type
of request?
Answer: This is an additional report - an oral report. A summary of
the oral report and a signed and dated certification must be included
in the workfile. Additionally, the workfile must contain a true copy of
the written report that is delivered to the client.
, ◉ A client contacts a broker to leaser her office property. The broker
also provides appraisal services, but the client was not aware of that
when she contracted with the broker. Is this assignment a valuation
service or is it an appraisal service?
Answer: This is a valuation service, but because the client does not
have expectations that the broker will act in the role of an appraiser
it is not appraisal practice. It is incumbent, however, on the
individual no to misrepresent his/her role in the assignment.
◉ I know appraisers who consistently conclude that the market
value of any property they appraise is equal to the contract sales
price. In doing so, they facilitate sales and financing of purchases,
which is apparently what keeps their clients happy. Is this a violation
of USPAP?
Answer: A contract price can be a good indicator of a property's
market value, and it may be logical and reasonable for the appraiser
to conclude that they are the same. However, this is not always the
case. A contract sales price, while a significant piece of market data,
must not become a target in an appraisal assignment. Competent
analysis of relevant and credible market data must be the appraiser
basis for a market value conclusion.
◉ If I have appraised a property multiple times within the previous
three years, do I have to disclose the number of appraisal services?
("I have appraised this property three times in three years?")
ASSESSMENT PAPER 2026 COMPLETE
QUESTIONS AND SOLUTIONS GRADED A+
◉ If a client wants to know the current value as though repaired on a
house that had severe flooding, what type of assignment condition
should the appraiser use?
Answer: Hypothetical Condition: the property as if repaired does not
currently exist
◉ A client has repaired a property that was damaged due to
flooding. Many neighboring properties in the same situation soon
developed mold problems. The client currently shows no evidence of
mold, what type of assignment condition should you use if the client
wants a current value opinion?
Answer: Extraordinary assumption: as of the date of value, the fact
of the potential condition (i.e. mold) is unknown, and it is reasonable
to believe the current condition is true.
◉ An appraiser performed the cost approach in an appraisal of a
new warehouse. The buyer paid 1.9 million, the appraised value was
2 million. Identify each of the three components: the reproduction
,cost developed by the appraiser, the 1.9 million, and the 2 million.
(Fact, estimate of fact, and opinion)
Answer: The reproduction cost developed by the appraiser is an
estimate of fact.
The 1.9 million is the price as a stated fact.
The 2 million value is the appraiser opinion.
◉ I accept assignments from an Appraisal Management Company
that has informed me they are an authorized agent for the lenders
they represent.. As the AMC is not my client, they have requested
that I only identify the lender they are representing as the client.
USPAP says the appraisers client is the party who engages the
appraiser. Is it ethical to omit the AMC's name as the client on my
reports?
Answer: Yes, if the AMC is acting as an agent for a lender, identifying
only the lender as your client is acceptable. However, the appraiser
must be aware of situations where disclosure of the AMC might be
required by law, regulation, or the secondary market.
◉ A client requests "a number" over the phone in advance of the
written appraisal report. How should an appraiser handle this type
of request?
Answer: This is an additional report - an oral report. A summary of
the oral report and a signed and dated certification must be included
in the workfile. Additionally, the workfile must contain a true copy of
the written report that is delivered to the client.
, ◉ A client contacts a broker to leaser her office property. The broker
also provides appraisal services, but the client was not aware of that
when she contracted with the broker. Is this assignment a valuation
service or is it an appraisal service?
Answer: This is a valuation service, but because the client does not
have expectations that the broker will act in the role of an appraiser
it is not appraisal practice. It is incumbent, however, on the
individual no to misrepresent his/her role in the assignment.
◉ I know appraisers who consistently conclude that the market
value of any property they appraise is equal to the contract sales
price. In doing so, they facilitate sales and financing of purchases,
which is apparently what keeps their clients happy. Is this a violation
of USPAP?
Answer: A contract price can be a good indicator of a property's
market value, and it may be logical and reasonable for the appraiser
to conclude that they are the same. However, this is not always the
case. A contract sales price, while a significant piece of market data,
must not become a target in an appraisal assignment. Competent
analysis of relevant and credible market data must be the appraiser
basis for a market value conclusion.
◉ If I have appraised a property multiple times within the previous
three years, do I have to disclose the number of appraisal services?
("I have appraised this property three times in three years?")
