USPAP Course 2023 with verified questions and answers

Does a "jurisdictional exception" allow an appraiser to disregard the requirements of USPAP? Yes or No Yes The JURISDICTIONAL EXCEPTION RULE provides for the situation in which parts of USPAP may be precluded by law or regulation in certain jurisdictions. The ______ Rule sets forth the requirements for integrity, impartiality, objectivity, independent judgement and ethical content. Ethics In the __________, data and analyses provided by a reviewer to support a different opinion must be consistent with the reporting standard. Appraisal Review Report An appraiser's opinions and conclusions developed specific to an assignment is called what? Assignment Results 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? No Is it acceptable to readdress or transfer a completed appraisal report? yes or no No. Once a report has been prepared for a named client or clients, the appraiser cannot readdress or transfer the report to another party. Simply changing the client name on the report cannot change or replace the original appraiser-client relationship. Therefore, this action is misleading. However, you can consider the request as a new assignment. In so doing, you may establish a new appraiser-client relationship and appraise the property for this new client. Which of the examples below an example of "substantial error of omission? .*Omitting the Highest & Best Use. *An appraiser making a mistake on how many units are in an apartment complex he is valuing. *Not including the engagement letter in the addenda. *Including the wrong flood map. Omitting the Highest & Best Use. 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? Record Keeping Rule The party or parties who engage, by employment or contract, an appraiser in a specificassignment is called a _____________. Client Is it true that Advisory Opinions are not part of USPAP? False or True True The Advisory Opinions, which are included in the same publication as the Rules, Standards, and Statements, are identified as a form of other communications issued by the Appraisal Standards Board (ASB). Just like Frequently Asked Questions, Advisory Opinions are published to illustrate the applicability of appraisal standards in specific situations and to offer advice from the ASB for the resolution of appraisal issues and problems. 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 or No No. A description of your assistance or contribution to the assignment is not required in the certification. However, in accordance with Standards Rule 2-2(a)(vii) and (b)(vii) the extent of the assistance must be summarized or stated (depending on the reporting option used) within the report. This required disclosure could be included within the certification, but it could also be included in some other section of the report When an appraiser makes a minor revision to a completed report that does not affect the value, what must he or she do with the effective date and the report date? Revise the report date but leave the effective date unchanged. I have been asked by a client to prepare a Restricted Appraisal Report that he plans to provide to another intended user. Does USPAP allow me to use this report option in such a circumstance? Yes or no? No. The Comment to Standards Rule 2-2 states: When the intended users do not include parties other than the client, a Restricted Appraisal Report may be provided. USPAP is developed by _________. The Appraisal Standard Board _______ has complete authority over the development of USPAP within The Appraisal Foundation. The Appraisal Standards Board What do USPAP Standards 9 & 10 deal with? The requirements for the development and communication of a business or intangible asset appraisal My State's appraiser regulatory agency sent out a newsletter that says a due date is an assignment condition, and that failing to adhere is a violation of USPAP. Yes or No? No Assignment due dates are contractual obligations, but are not assignment conditions under USPAP. Turnaround times and similar items are business practice issues, and are outside the scope of USPAP. I have a client that requires my resume to be included with each appraisal report I perform for them. Does USPAP permit me to identify past clients in my resume, since it will be included in the appraisal report? Yes There are no prohibitions in USPAP against identifying an appraiser's past clients. An exception might exist if the client told the appraiser not to disclose their identity. According the USPAP, how many years must an appraiser keep an appraisal workfile? 5 Where does the Appraisal Standards Board get funding to operate? Appraisers 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. disclose any prior service within the last three years Is maintaining only electronic workfiles (PDF copies) prohibited by USPAP? Yes or no? No. There is nothing in USPAP that would prohibit an appraiser from maintaining only electronic versions of workfiles. An appraiser has been asked to complete an appraisal assignment. The fee is to be paid when when the loan closes. According to USPAP, may the appraiser accept the assignment under the conditions? No The interests, benefits, and rights inherent in the ownership of real estate is defined as: Real Property 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? Yes or No? Yes. Standards Rule 1-6 states: In developing a real property appraisal, an appraiser must: (a) reconcile the quality and quantity of the data available and analyzed within the approaches used; Is turnaround time an assignment condition? No Due dates are contractual obligations, but are not assignment conditions under USPAP. Turnaround times and similar items are business practice issues, and are outside the scope of USPAP. What year was the Appraisal Practices Board (APB) created? 2010 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 made regarding a physical characteristic of the property which has no influence on value. *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 contrary to fact, but which is assumed for the purpose of discussion, analysis, or formulation of opinions True or False: USPAP is written by a government entity. False The __________________ Rule preserves the balance of USPAP if a portion is contrary to law or public policy of a jurisdiction. Jurisdictional Exception _______ is the estimated length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal. Marketing Time Appraisal Time Assumed on market time Exposure Time Exposure Time The effective date of an appraisal can be: A past date, the current date, or a future date True or False: Standards 4 & 5 are not applicable to any part of the appraisal process. True Standards 4 & 5 have been retired. Before the latest edition of USPAP, these standards dealt with appraisal consulting and reporting. In a real property Appraisal Report, an appraiser must ____ the rationale and reasoning for the opinion highest and best use. Certify and State I am completing a market value appraisal. I use standard pre-printed residential report forms that ask for a neighborhood marketing time. Does marketing time on these forms mean the same thing as exposure time as it is used in USPAP? Yes or No? No Although the two may be the same length of time, the meanings are different. The exposure time opinion required by USPAP is specific to the subject property and represents the length of time the subject would likely have been listed for sale prior to a hypothetical sale of the subject property on the effective date of the appraisal. Marketing time, in this context, is the typical length of time the properties in that neighborhood would be expected to be on the market prior to a sales agreement 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? Personal Property Representing the cause or interest of another, even if that cause or interest does not necessarily coincide with one's own beliefs, opinions, conclusions, or recommendations. This statement best describes what appraisal term? Advocacy Can an appraiser make an assumption in a report on something that is known to be false? Yes, if a Hypothetical Condition is used. In my role as an appraiser, I perform many assignments that are not appraisal or appraisal review. Does the SCOPE OF WORK RULE apply to these assignments? No. The SCOPE OF WORK RULE applies only to appraisal and appraisal review assignments. 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 3 Does USPAP require an appraiser to certify in the appraisal report that he or she has not been coerced to provide predetermined results? No. However, such a statement would not be inconsistent with the requirements of USPAP. Standards Rule 2-3 essentially requires the appraiser to certify that he or she has not been coerced, without specifically using that term. For example, Standards Rule 2-3 requires the appraiser to certify, among other things, that: my engagement in this assignment was not contingent upon developing or reporting predetermined results. An appraiser would be unethical to affirm this statement in the certification if the appraiser had been coerced into providing predetermined assignment results. What is the main purpose of USPAP? To promote and maintain public trust The ASB changed the definition of assignment results to specify that physical characteristics are not assignment results. Does this mean that physical characteristics are not confidential? Yes 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. True or False : USPAP requires you to make an adjustment to the subject if it is being sold under unusual financing conditions. True, If the market supports it, you would adjust a comparable, not the subject. If I will be conducting an auction of the subject property after the appraisal, does this have to be disclosed? Yes, This is an example of a "current or prospective interest in the subject property." USPAP requires that such an interest be disclosed in the certification and prior to acceptance of an assignment or upon discovery during the assignment Which of the following is issued by the Appraisal Standards Board for the purpose of clarifying, interpreting, explaining or elaborating the Uniform Standards of Professional Appraisal Practice. Statements Comments Advisory Opinions Statements I am aware of the disclosure requirements in the Conduct section of the ETHICS RULE that require me to disclose any services I performed regarding the subject property within the prior three years. If I have not performed any such services, am I required to make that disclosure as well? Yes, but only in the certification. According to USPAP, the appraiser's primary responsibility is: Protect the trust of the public True or False: An appraiser can inspect a property using a drone. True, Just not considered interior personal inspection. The ___________ Rule establishes the work-file requirements for appraisal and appraisal review assignments. Record Keeping In USPAP "other communiations" are: Binding and enforceable An essential part of USPAP Advisory Opinions All of these are correct. Advisory Opinions When performing a market value appraisal on an improved property, an appraiser develops an opinion of highest and best use, exposure time, site value, and indicated values by the Sales Comparison Approach and Cost Approaches, as well as a final value opinion. Which of the following are considered Assignment Results? The Highest & Best Use The Final Value Opinion The Exposure Time All of these are correct. All of these are correct. In developing a real property appraisal, an appraiser must collect, verify and analyze all information necessary to make the client happy. True or false False An appraiser must do these things in order to report credible assignment results. What organization sets the Congressionally-authorized standards and qualifications for real estate appraisers, and provides voluntary guidance on recognized valuation methods and techniques for all valuation professionals? The Appraisal Foundation What standard (s) establish requirements for the development and communication of a real property appraisal? Standards 1 & 2 Which of the following statements best describes a feasibility analysis? *A study of the cost-benefit relationship of an economic endeavor. *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. Which of the following statements best describes an extraordinary assumption? *An assumption made contrary to fact, but which is assumed for the purpose of discussion, analysis, or formulation of opinions *An assumption made regarding a physical characteristic of the property which has no influence on value. *An assumption directly related to a specific assignment, which if found to be false, could alter the appraiser's opinions or conclusions. An assumption directly related to a specific assignment, which if found to be false, could alter the appraiser's opinions or conclusions. How many Standards are there in USPAP? (trick question) 8 The latest edition of USPAP lists 10 standards. However, Standard 5 & 6 have been retired and are no longer applicable. The function of the "Statements" in USPAP are; *To clarify all the appraisal standards *Provide much needed clarification *To assist in interpreting and elaborating USPAP issues *All of these answers are correct All of these answers are correct 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? *There is no problem with this arrangement as long as it is disclosed in the report. *According to Standard 7, USPAP has been violated. *The appraiser is in violation of the Management Section of the Ethics Rule of USPAP. The appraiser is in violation of the Management Section of the Ethics Rule of USPAP. If an appraiser is asked to appraise a property on which there is known, current agreement of sale, the agreement must be _____________. Analyzed in the appraisal Which statement is true regarding an appraisers obligation to disclose prior services performed on properties previously used as comparables? Using a property as a comparable sale is not considered a prior service, therefore no disclosure is required. A real estate broker preforms a BPO (Brokers Price Opinion). Does this need to conform to USPAP? No Are personal property appraisers required to comply with USPAP? Yes According to USPAP, which of the following statements is considered to be Confidential Information? *A broker gives you sale information and tells you it is confidential. However, other brokers in town also have the same information. *The client gives you information that nobody else has access to and asks that you keep it confidential. *Downloaded material off the MLS that only real estate professionals have access to. *All of these answers are correct. The client gives you information that nobody else has access to and asks that you keep it confidential. Can a pending sale be used as a comparable if the fact that the sale is pending is disclosed in the appraisal report? Yes An appraiser has used data that was over three years old in the appraisal. What USPAP Rule has been violated? None 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 Can an appraiser make an assumption in a report on something that is known to be false? Yes, if a Hypothetical Condition is used. True or False: An appraiser must obtain the necessary competency prior to accepting the assignment. False Be careful with these types of questions. The appraiser can take the assignment without knowing how to complete it. However, he must gain competency before completing.