USPAP 15-hour Questions and Answers 100% Pass

USPAP 15-hour Questions and Answers 100% Pass Appraisal ✔✔The act or process of developing an opinion of value Appraisal practice ✔✔Valuation services performed by an individual acting as appraiser; including but not ...

USPAP 15-hour Questions and Answers 100% Pass Appraisal ✔✔The act or process of developing an opinion of value Appraisal practice ✔✔Valuation services performed by an individual acting as appraiser; including but not limited appraisal and appraisal review Appraisal review ✔✔The act or process of developing an opinion about the quality of another's appraisers work Appraiser ✔✔One who is expected to perform valuation services competently in a manner that is INDEPENDENT IMPARTIAL & OBJECTIVE Appraisers peers ✔✔Other appraisers who have expertise and competency in similar assignment Assignments ✔✔An agreement between appraiser and client to provide valuation service Assignment results ✔✔Appraisers opinions or conclusions developed on specific assignment Assumptions ✔✔That which is taken to be true Bias ✔✔A preference that precludes appraiser from being impartial, independent and objective Business enterprises ✔✔Entity pursuing an economic activity Business equity ✔✔Interest, benefits, rights inherent in the ownership of a business enterprise Client ✔✔The party or parties who engage, by employment or contract, an appraiser in a specific assignment. confidential information ✔✔Information that is either:private by law, identified by the client and is not available by any other source Cost ✔✔Amount required to create, produce or obtain property Credible ✔✔Worthy of belief Exposure time ✔✔Estimated length of time the prop interest being appraised WOULD have been offered on the market prior to the hypothetical sale at market value on eff date of appraisal. Extraordinary assumption ✔✔An assumption directly related to specific assignment, which is found to be true could alter the appraisers opinion or conclusion Feasibility analysis ✔✔Study of the cost-benefit relationship of an economic endeavor Hypothetical condition ✔✔Directly related to sub assignment, which is contrary to what is known by appraiser to exist on effective date of assignment, but is used for purpose of analysis Intangible property ✔✔No physical assets: franchises, trademarks, patents, equities, Intended use ✔✔Use of appraisers reported appraisal or review assignment opinion or conclusions as identified by the appraiser based on communication w client at time of assignment Intended user ✔✔The client or any other party as identified by name or type as users of the appraisal Jurisdictional exception ✔✔An assignment condition est by applicable law or reg that precludes an appraiser from complying with USPAP Market value ✔✔Type of value stated as opinion, that assumes transfer of property on specific date Mass appraisal ✔✔Process of valuing a universe of properties as of a given date using standard methodology, common data and statistical testing Mass Appraisal Model ✔✔A mathematical expression of how supply and demand factors interact in a market. Personal Property ✔✔Identifiable tangible objects that are considered by general public as being "personal". Price ✔✔The amount asked, offered or paid for a property Real estate ✔✔An identified parcel of land, including any improvements Real Property ✔✔The interests, benefits, and rights inherent in real estate ownership. Report ✔✔Any communication written or oral of an appraisal or appraisal review that is transmitted to the client upon completion Scope of work ✔✔Type and extent of research and analysis needed in appraisal assignment Signature ✔✔Personalized evidence indicating authenticity of an appraisal report. Acceptance of responsibility for content, analysis and conclusions Valuation services ✔✔Services pertaining to aspects of property value Value ✔✔Monetary relationship between property and those who buy, sell, use property Workfile ✔✔Collection of documentation to support an appraisers final report USPAP ✔✔Developed for purpose to promote & maintain public trust and confidence in professional appraisal. ASC ✔✔Appraisal Sub Committee: monitors TAF, non-profit. Supervisory role over state agencies & regs. FFIEC made up of 7 govt agencies FRB, OCC, FDIC, NCUA, HUD, FHFA, CFPB APB ✔✔Appraisal Practices Board: valuation advisory of techniques and methods of appraisal TAF ✔✔The Appraisal Foundation: private/ no legal governance, non-profit BOT ✔✔Board of Trustees: appoints members to other boards, secures funding for TAF, monitors/oversight of TAF, 3 boards & councils ASB ✔✔Appraisal Standards Board: revises USPAP- 2 year update, subject, content. Sets Definitions, Preamble, Rules, Standards, and Statements AQB ✔✔Appraisal Qualification Board: sets min education requirements/criteria, creates National Uniform Licensing and exams, certifies instructors & courses Title XI ✔✔FIRREA accepted by Congress, OMB, IRS and Fannie Mae 3 TAF Sponsors ✔✔Appraisal Sponsor, Affiliate Sponsor, International Sponsor 3 TAF Councils ✔✔The Appraisal FoundationAdvisory Council TAFAC Industry Advisory Council IAC Value Global Forum VGF State regulatory agencies ✔✔Validate qualifications, issue credentials, investigate complaints, admin disciplinary actions USPAP Structure ✔✔-Definitions - Preamble - Rules (5): ethics, competency, record keeping, scope of work, jurisdictional exception. - Standards 1-10 - Statements on Standards STANDARDS 1-10 ✔✔1- Real Prop App/ Development 2- Real Prop App/ Reporting 3- Appraisal Review/ Dev & Reporting 6- Mass Appraisal/ Dev & Reporting 7- Personal Prop App/ Development 8- Personal Prop App/ Reporting 9- Business App/ Development 10- Business App/ Reporting "Statements" ✔✔Authorized by bi-laws of TAF and are for Clarification, Interpretation, Explanation or Elaboration of USPAP "Comments" ✔✔Same weight as component being addressed. Extensions of definition and rules to provide interpretation and establish content. Steps of Appraisal Process ✔✔1- Define problem 2- define scope of work 3- data collection & Analysis 4- application of approaches to value 5- reconciliation of value, final opinion 6- Report/ Defined value 2 Elements of Appraisal process ✔✔- Development - Reporting USPAP applies only to _______________ ✔✔Appraisal Practices performed by appraisers Services provided by Appraisal Practice ✔✔Appraisal, Appraisal review, other(teaching, studies, articles, legal) Types of Property covered by USPAP ✔✔Tangible and Intangible Scope of work rule ✔✔-problem identification -scope of work acceptability -disclosure obligation Appraisers have broad _________________ and significant ________________ in determining the appropriate scope of work in an assignment ✔✔Flexibility, responsibility Scope of work: Problem Identification ✔✔Client and other intended users Intended use Type and definition of value Effective date Subject of assignment Assignment conditions Scope of work acceptability ✔✔Expectation of parties who are regularly intended users AND what an appraiser peers actions would be Intended Use determines definition of _________________ if given assignment ✔✔Market value Summarized report where the client and intended user are different ✔✔Appraisal report Stated conclusion info kept in workfile. Client is the only intended user ✔✔Restricted report In developing a real property appraisal, an appraiser must ______________, _________________, and ______________ all information necessary for credible assignment results ✔✔Collect, verify, analyze