USPAP 15 Hour Course 2023 with complete questions and answers

Currently, the boards within The Appraisal Foundation include: Appraisal Standards Board, Appraiser Qualifications Board, Board of Trustees · Which Foundation board is responsible for USPAP? Appraisal Standards Board (ASB) The Appraisal Foundation has the authority to enforce the requirements of USPAP. False · Which entity appoints members of the AQB and ASB? Board of Trustees (BOT) · Which entity is responsible for establishing education and experience requirements for licensing and certification of appraisers? Appraiser Qualifications Board (AQB) · Qualification criteria for appraiser certification and recertification are disseminated to state appraisal boards by the: Appraiser Qualifications Board (AQB) · USPAP is written, amended, and interpreted by the: Appraisal Standards Board (ASB) · Advisory Opinions are best described as not part of USPAP, but included as reference material · Which is NOT a responsibility of the Appraisal Subcommittee (ASC)? Writing, interpreting, and amending USPAP · Who is responsible for issuing credentials to individual appraisers? State appraisal regulatory agencies · USPAP is enforced by: State appraiser licensing/certification agencies · Which entity maintains the official National Registry of state-certified and licensed appraisers? Appraisal Subcommittee (ASC) · Which of these is considered an integral part of USPAP and has the same weight as the components they address? Comments · Which part of USPAP establishes the requirements for work file content for an appraisal or appraisal review assignment? RECORD KEEPING RULE · Why are USPAP Advisory Opinions issued? To offer advice · Which step in the appraisal process involves communication of the appraiser's opinions and conclusions? Reporting · In USPAP, the appraisal process is divided into two distinct types of activity: _________ and __________. Development, reporting · The first step in the appraisal process is: Identify the problem · What is the stated purpose of USPAP? Promote and maintain a high level of public trust in appraisal practice · To which property types does USPAP apply? Both tangible and intangible property · The PREAMBLE states that USPAP intended to benefit: Appraisers and users of appraisal services · When obligated by law or regulation, an appraiser _______ comply with USPAP. Must · The requirement for USPAP compliance in an appraisal assignment could be the result of: Law or regulation Agreement with the client ***Any of these answers*** Voluntary choice by the appraiser · An appraiser has the professional responsibility to identify the capacity in which he or she is performing. True · When performing valuation services outside of appraisal practice, an individual must be careful not to __________ the client and other intended users about his or her role. Mislead · USPAP states that in a situation when an individual is not required by law, regulation, or agreement to comply with USPAP: The individual should still comply when he or she is acting as an appraiser · A valuation service that is premised upon advocacy: It cannot be performed by an individual acting as an appraiser · An appraiser is permitted to be biased when performing an appraisal, as long as the bias is properly disclosed. False · A preference or inclination that precludes an appraiser's impartiality, independence, or objectivity is: Bias · If an appraiser assumes a condition to be true that does not exist for the purposes of analysis, this is an example of: A hypothetical condition · If an appraiser assumes a condition to be true, and evidence supports that belief, although that fact is not certain, this is an example of: An extraordinary assumption · "The monetary relationship between properties and those who buy, sell or use those properties" is the definition of: Value · An appraiser receives a copy of a signed sales agreement for an office building, which specifies the agreed-upon amount of $950,000. What does this figure represent? Price · By using a published cost manual, an appraiser determines that the construction cost of a 2,500 square foot dwelling is $400,000. This figure represents the dwelling's: Cost · It is permissible for an appraiser to be engaged in an assignment by an agent, who is acting on behalf of the client. True · According to USPAP, the party or parties who engage an appraiser in a specific assignment defines the: Client · An appraiser performs an appraisal assignment and develops an opinion of value. This value opinion is an assignment result · Who is responsible for making the identification of the intended use in an assignment? The appraiser An intended user is: A party who is identified by the appraiser based on communication with the client at the time of the assignment · Appraisal practice includes only: Valuation services provided by an individual acting as an appraiser · A real estate broker completes a Comparative Market Analysis (CMA) on a property that she wants to list for sale. What would this be considered? A valuation service · Which is the broader category of services? Valuation Services · A workfile must be maintained for: Appraisal and appraisal review assignments only · "The type and extent of research and analyses in an appraisal or appraisal review assignment" is the definition of ___________. · Scope of work · In USPAP, each Standard is composed of: Standards Rules · In appraisal practice, advocating the cause or interest of any party or issue is: Not permitted · The ethical obligations of USPAP apply to: Individual appraisers · Bias is permitted in an appraisal as long as the bias is clearly disclosed in the report. False False · An appraiser must disclose any service he or she provided regarding the subject property for a period of _________ prior to agreeing to perform the assignment. Three years · An appraiser is disclosing to a client the fact that she had previously appraised the subject property within the prior three years. When making this disclosure, the appraiser must be careful to: Not disclose confidential information from the previous assignment · An appraiser has been asked to complete an appraisal assignment. The fee is to be paid only if the loan closes. According to USPAP, may the appraiser accept the assignment under these conditions? No, the fee arrangement is an unethical contingency arrangement and violates the ETHICS RULE. · In a real property appraisal assignment prepared for a mortgage lender, an appraiser is permitted by USPAP to base his compensation for an appraisal assignment on: Whether or not the report is transmitted to the client by the due date · An appraiser concludes that a subject property has functional inadequacies. This conclusion is: An assignment result and must be treated as confidential · The Confidentiality section of the ETHICS RULE prohibits an appraiser from disclosing confidential information or _________ to unauthorized parties. Assignment results · In most cases, an appraiser may share __________ from an appraisal assignment with other appraisers without obtaining the client's consent. Physical characteristics · An appraiser prepared an appraisal report in April 2019. He testified in court regarding the value of the property in January 2020. The decision was rendered in February 2020 and was appealed in April 2020. The appellate court heard the case in January 2021 and remanded the case for reconsideration by the lower court. Final disposition of the case occurred in September 2021. At a minimum, how long must the appraiser retain his workfile? April 2024 · Is an appraiser permitted by USPAP to create a workfile after transmitting the report to the client? No · An appraiser completes an appraisal and transmits the report to the client. The report copy retained in the appraiser's workfile does not have a signature affixed to it. Is this permissible under USPAP? No, a true copy must include a signature · Which statement best describes the word "competency" as it relates to appraisal practice? It is fundamental to the definition of "appraiser." · Which of these is NOT one of the steps required by USPAP when an appraiser wishes to perform an assignment for which he or she initially lacks the knowledge and experience? Use a hypothetical condition to complete the assignment as though the appraiser already had the knowledge and experience · In order to perform an assignment for which an appraiser initially lacks the knowledge and experience to complete competently, the appraiser must: Disclose to the client, prior to agreeing to perform the assignment, the lack of knowledge or experience · Three appraisers work together on an appraisal assignment. What would NOT be an appropriate workfile arrangement under USPAP? The workfile is posted on the Internet, so that anyone who wants to see it will be able to access it. · The requirement to create and maintain a workfile for an appraisal or appraisal review assignment applies to: All appraisers, regardless of credential level Only trainees or assistants · In order to determine the appropriate scope of work, the appraiser must ________ the problem to be solved. Identify · Appraisers have broad _________ and significant _________ in determining the appropriate scope of work in an assignment. Flexibility, responsibility · The credibility of assignment results is measured in the context of: The intended use · Intended use is: Identified by the appraiser on the basis of communication with the client Identification of the intended use of an appraiser's opinions and conclusions is: Necessary for determining the appropriate scope of work · Examples of assignment conditions include: Laws and regulations Hypothetical conditions ****All of these answers********* Extraordinary assumptions · The responsibility for determining an appropriate scope of work rests with the: Appraiser Intended users · In an appraisal or appraisal review assignment, the scope of work is an ___________ process. Ongoing An appraiser's report must contain ____________ to allow intended users to understand the scope of work performed. Sufficient information · An appraiser must not allow client objectives to cause the assignment results to be _________. Biased · If a client's objectives result in an appraiser developing biased assignment results: The appraiser is solely responsible An appraiser is engaged to appraise a single-unit dwelling. Upon inspection of the property, the appraiser realizes it is a three-unit dwelling. The appraiser's best course of action is: Reconsider the scope of work before proceeding · An appraiser's peers are defined as other appraisers who: Have expertise and competency in a similar type of assignment · In reporting the scope of work in an appraisal or appraisal review report: The report must contain sufficient information so that intended users understand the scope of work · If USPAP compliance is mandated by federal law, no state or local law can create a jurisdictional exception. True · If an assignment involves a jurisdictional exception, what must an appraiser do? Identify the law, comply with the law, disclose in the report the part of USPAP that is voided, and cite in the report the law that caused the jurisdictional exception · When a law or regulation precludes compliance with any part of USPAP, appraisers must: Comply with that law or regulation · What is the purpose of the JURISDICTIONAL EXCEPTION RULE? To provide a saving or severability clause to preserve the balance of USPAP · As used in the JURISDICTIONAL EXCEPTION RULE, the term "law" includes ____________. All of these answers · Is it permissible to use instructions from an attorney as a basis for a jurisdictional exception? No The use of the JURISDICTIONAL EXCEPTION RULE in an assignment is a matter of choice by an · appraiser. False · A state passes a law requiring appraisers to keep their workfiles for 10 years after preparation. Is this a jurisdictional exception under USPAP? No · Which of these would be considered an example of a jurisdictional exception in an appraisal assignment? A probate court paying appraisers based on the value of the subject property · When does a jurisdictional exception occur in an assignment? It is automatic when a law precludes compliance with a part of USPAP · The requirements of STANDARD 1 can be used as a checklist by an appraiser who is developing a real property appraisal. True · Which statement is FALSE regarding STANDARD 1? It covers real and personal property appraisal development. · If a mortgage borrower receives a copy of an appraisal report from a mortgage lender as a result of disclosure requirements: This does not make the borrower an intended user · When does a series of minor errors potentially result in a USPAP violation? When the series of errors affects the credibility of the results · An appraiser's client wishes to remain anonymous, and asks the appraiser not to include client's identity in an appraisal report. What should the appraiser do? Omit the client's identity from the report but document the client's identity in the workfile · Which statement is TRUE regarding exposure time? It is always assumed to precede the effective date of the appraisal. · Exposure time is: An opinion developed by an appraiser · What is the primary purpose of an appraiser making an inspection of the subject property? To collect information about characteristics that are relevant to value · An example of a relevant property characteristic that could affect a real property appraisal assignment would be: The fact that the subject property is affected by an easement · When appraising a property with proposed improvements, what type of value opinion is permitted by USPAP? Both current and prospective values · When an appraiser provides a current value opinion on a proposed new building, he or she is utilizing a(an) _____________ that the proposed improvements are completed as of the effective date of the appraisal. Hypothetical condition · An extraordinary assumption may be used in an assignment only if: ·Required to develop credible results · An unacceptable assignment condition would be a condition that: Limits the scope of work to the extent that the value opinion is not credible Precludes an appraiser's impartiality Limits report content, resulting in a misleading report All of the answers listed************* · When developing a sales comparison approach under USPAP: The appraiser must analyze such data as are available to indicate a value conclusion · Which statement is TRUE regarding USPAP and the three approaches to value? An assignment condition may require an appraiser to develop an approach that he or she would otherwise consider unnecessary. · When analyzing the subject property's sales history in a real property appraisal assignment, an appraiser is required by USPAP to analyze ______________. All sales of the subject property that occurred within three years prior to the effective date of the appraisal · When analyzing listings of the subject property in a real property appraisal assignment, USPAP requires an appraiser to analyze, at a minimum, ____________. Current listings · The process of reconciliation entails ___________. Careful consideration of the quality and quantity of data · In the development of an appraisal, the appraiser is required to: Not commit a substantial error that significantly affects the appraisal · When is it necessary to analyze prior listings of the subject property in a real property appraisal assignment? When such analysis is relevant to the current assignment · STANDARD 2 sets forth requirements for Appraisal report content · The use of standard appraisal reporting forms Is not required by STANDARD 2 · What is the essential difference between the two reporting options? The content and level of information · The two written report options stated in Standards Rule 2-2 are Appraisal Report and Restricted Appraisal Report When reporting the results of an appraisal, dates that must be included are Effective date and report date · Which of the following is NOT required by USPAP to be in an Appraisal Report? Client's specific name · An appraiser's client requests anonymity and asks that their identity not appear in the Appraisal Report that is prepared for the assignment. What must the appraiser do? State in the report that the client's identity has been withheld at the client's request *****All of these actions must be taken**** Document the identity of the client in the workfile Use care not to violate the Confidentiality section of the ETHICS RULE · In an Appraisal Report, the scope of work used to develop the appraisal must be summarized · An appraiser determines that the cost approach is not necessary in an appraisal assignment, and therefore does not develop the approach. In the Restricted Appraisal Report for the assignment, what must the appraiser do? State the reason for the exclusion of the approach · All written appraisal reports must contain a signed certification · When an extraordinary assumption is used in an appraisal, the report must state the extraordinary assumption and state that its use may have affected the assignment results · An appraiser is preparing a Restricted Appraisal Report in a situation where there are intended users in addition to the client. Which statement is true regarding this situation? These additional intended users must be identified in the report by name. · What is the purpose of including a signed certification in an appraisal report? For the appraiser to acknowledge his or her ethical obligations · According to USPAP, any appraiser who signs any part of an appraisal report is required to sign a certification · Which of the following best describes bias in appraisal practice? It is not permitted · An appraiser provides an oral report of a real property appraisal. Which statement is CORRECT? The appraiser must add a signed and dated certification to her appraisal workfile. · To the extent possible and appropriate, oral appraisal reports for real property must address the substantive matters that apply to a(n) Appraisal Report · An appraiser completes an appraisal for Bank A. Two months later, he is contacted by Bank B, who asks him to "readdress" his prior report to them. Which statement is TRUE about the appraiser's USPAP obligations? He is not permitted to "readdress" the report to Bank B. · USPAP requires an appraiser to obtain a release from a previous client before appraising the same property for a new client. False · If a client requests a more current valuation on a property that was the subject of a prior assignment, this is a(n) ____________. new assignment · A trainee assisted a senior appraiser in an appraisal assignment, but the trainee appraiser does not sign a certification. The trainee's name is stated in the certification as having provided significant appraisal assistance. Is a description of the trainee's assistance also required to be in the certification? No · If a supervising appraiser makes changes to a trainee's appraisal report which the trainee does not agree with, the trainee should not sign the certification · When developing an appraisal review, USPAP requires a reviewer to identify the appraiser who completed the work under review: unless the identity has been withheld by the client · In performing an appraisal review, a reviewer may use information that was not available to the original appraiser in the normal course of business, as long as the information: is not used in the development of the reviewer's opinion of the quality of the work under review · When performing an appraisal review, a reviewer finds information that was available to the original appraiser, but the original appraiser did not consider it when developing the appraisal under review. Does USPAP permit the reviewer to use this information in developing an opinion of the quality of the work under review? Yes · Is a reviewer permitted to file a complaint with a state appraisal regulatory agency without the client's consent? Yes · An appraisal review can be a two-stage assignment, which includes both an appraisal review and a value opinion by the reviewer. True · Which statement is TRUE regarding USPAP and the appraisal review process for real property? If the reviewer develops his or her own opinion of value, it must be developed under the requirements of STANDARD 1. An appraisal review report must be separate from the work under review · A reviewer is responsible for ensuring that there is __________ in a review report so that it can be properly understood by __________. Sufficient information; intended users · A reviewer is preparing an appraisal review report using a pre-printed form that was created by the client. The form does not have space for all of the minimum report content requirements of USPAP. What should the reviewer do? Supplement the form with the required content items · A reviewer is preparing an appraisal review report. The identity of the appraiser who completed the work under review was not provided by the reviewer's client. What should the reviewer do? State, in the appraisal review report, that the appraiser's identity was withheld by the client · A reviewer is reviewing a real property appraisal and has developed her own value opinion that differed from the value opinion in the work under review. When reporting her value opinion in the appraisal review report, what must the reviewer do? Provide data and analysis that matches the reporting requirements for an Appraisal Report · As part of an appraisal review assignment, a reviewer develops his own opinion of value that differs from the original appraiser's value opinion. How many certifications does USPAP require in the appraisal review report for this assignment? One · Is a reviewer permitted by USPAP to use information that was not available to the original appraiser to discredit the work under review? No · A reviewer performing an appraisal review must not sign the work under review unless he or she intends to accept the responsibility as a co-signer of the work. True · If a reviewer provides an oral report of an appraisal review a signed certification must be inserted into the workfile · Which of these examples indicates that a reviewer DID NOT develop his own opinion of value in an appraisal review assignment? I reject the value conclusion as lacking credibility due to the errors and inconsistencies found. · If an appraiser is asked to develop an opinion of the quality of another appraiser's work and to agree or disagree with the value conclusion this is a two-stage assignment · STANDARD 5 is most similar in structure to: STANDARD 1 · STANDARD 5, Mass Appraisal, Development, applies to: Both real and personal property · An appraiser is engaged by her local county assessment board to complete an appraisal on an apartment building for ad valorem taxation purposes. Which USPAP STANDARD(S) apply to this assignment? STANDARDS 1 and 2 · In a written mass appraisal report prepared under STANDARD 6, what is the purpose of a signed certification? It serves as an appraiser's acknowledgement of his or her ethical obligations