USPAP 15-hour course Exam 173 Questions with Answers,100% CORRECT

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USPAP 15-hour course Exam 173 Questions with Answers The concept of public trust means that an appraiser must act: - CORRECT ANSWER in the public's interest USPAP establishes standards that are ap ... plicable in the appraisal of: - CORRECT ANSWER real property, intangible property, and personal property Which statement is TRUE regarding The Appraisal Foundation and USPAP enforcement authority? - CORRECT ANSWER The Appraisal Foundation does not have the authority to enforce the requirements of USPAP. Which entity is responsible for establishing education and experience requirements for licensing and certification of appraisers? - CORRECT ANSWER Appraiser Qualifications Board (AQB) Qualification criteria for appraiser certification and recertification are disseminated to state appraisal boards by the: - CORRECT ANSWER Appraiser Qualifications Board (AQB) Which entity appoints members of the Foundation's independent Boards? - CORRECT ANSWER Board of Trustees (BOT) USPAP is developed, interpreted, and amended by the: - CORRECT ANSWER Appraisal Standards Board (ASB) Advisory Opinions are best described as - CORRECT ANSWER Not part of USPAP, but included as reference material The ASB is considering comment letters written by members of the public regarding a proposed revision to USPAP. When reviewing these comment letters, the ASB focuses on: - CORRECT ANSWER The reasoning and insight presented in the letter Which is NOT a responsibility of the Appraisal Subcommittee (ASC)? - CORRECT ANSWER Developing, amending, and interpreting USPAP Who is responsible for issuing credentials to individual appraisers? - CORRECT ANSWER State appraisal regulatory agencies Under FIRREA, USPAP is enforced by: - CORRECT ANSWER State appraiser licensing/certification agencies Which entity maintains the official national registry of state-certified and licensed appraisers? - CORRECT ANSWER Appraisal Subcommittee (ASC) In USPAP, the appraisal process is divided into two distinct types of activity: _________ and __________. - CORRECT ANSWER development, reporting Which step in the appraisal process involves communication of the appraiser's opinions and conclusions? - CORRECT ANSWER reporting The first step in the appraisal process is: - CORRECT ANSWER Identify the problem A preference or inclination that precludes an appraiser's impartiality, independence, or objectivity is: - CORRECT ANSWER bias An appraiser is not permitted to be ____________ when performing an appraisal. - CORRECT ANSWER an advocate conveys a mental state that does not favor one side over another at the outset of an investigation is what? - CORRECT ANSWER impartiality 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 is what? - CORRECT ANSWER advocacy 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: - CORRECT ANSWER an extraordinary assumption If an appraiser assumes a condition to be true that does not exist for the purposes of analysis, this is an example of: - CORRECT ANSWER hypothetical condition The terms extraordinary assumption and hypothetical condition: - CORRECT ANSWER Have different meanings within USPAP 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: - CORRECT ANSWER cost "The monetary relationship between properties and those who buy, sell or use those properties" is the definition of: - CORRECT ANSWER value Which of these statements is TRUE about the USPAP definition of client? - CORRECT ANSWER The client may engage the appraiser through an agent. Which statement about intended users is TRUE? - CORRECT ANSWER The client is always an intended user Who makes the identification of the intended use in an assignment? - CORRECT ANSWER the appraiser An intended user is: - CORRECT ANSWER A party who is identified by the appraiser based on communication with the client at the time of the assignment A real estate broker completes a Comparative Market Analysis (CMA) on a property that he wants to list for sale. What would this be considered? - CORRECT ANSWER a valuation service Which is the broader category of services? - CORRECT ANSWER valuation services A workfile must be maintained for: - CORRECT ANSWER All appraisal and appraisal review assignments Appraisal practice includes only: - CORRECT ANSWER Valuation services provided by an individual acting as an appraiser In USPAP, each Standard is composed of: - CORRECT ANSWER Standards rules What is the stated purpose of USPAP? - CORRECT ANSWER Promote and maintain a high level of public trust in appraisal practice The PREAMBLE states that USPAP is: - CORRECT ANSWER For appraisers and users of appraisal services When obligated by law or regulation, an appraiser ________ comply with USPAP. - CORRECT ANSWER must One of an appraiser's obligations with regard to user expectations is to: - CORRECT ANSWER Identify the capacity in which he or she is performing Which statement is TRUE regarding the relationship between valuation services and appraisal practice? - CORRECT ANSWER Appraisal practice is a subset of valuation services. What could cause an appraiser to prepare an appraisal assignment in conformance with USPAP? - CORRECT ANSWER Law or regulation, agreement with the client, or voluntary choice by the appraiser USPAP states that in a situation when an individual is not required by law, regulation, or agreement to comply with USPAP: - CORRECT ANSWER The individual should still comply when he or she is acting as an appraiser When performing valuation services outside of appraisal practice, appraisers must be careful not to __________ the client and other intended users about their role. - CORRECT ANSWER mislead An individual is ______________ provide valuation services that involve advocacy while acting as an appraiser. - CORRECT ANSWER not permitted to Which statement regarding bias in an appraisal assignment is TRUE? - CORRECT ANSWER An appraiser is never permitted to perform an assignment with bias. The ethical obligations of USPAP apply to: - CORRECT ANSWER Individual appraisers only In appraisal practice, advocating the cause or interest of any party or issue is: - CORRECT ANSWER not permitted Prior to accepting an assignment, an appraiser must disclose any service he or she provided regarding the subject property for a period of _________. - CORRECT ANSWER three years An appraiser has appraised a property multiple times within the prior three years. He is asked by a prospective client to appraise the property again. Which statement is TRUE? - CORRECT ANSWER He must disclose the number of times he has appraised the property within the prior three years. An appraiser has been asked to complete an appraisal assignment. The fee is to be paid when and if the loan closes. According to USPAP, may the appraiser accept the assignment under these conditions? - CORRECT ANSWER No, the fee arrangement is an unethical contingency arrangement and violates the ETHICS RULE. The payment of fees by the appraiser in connection with the procurement of an assignment is: - CORRECT ANSWER Allowed if properly disclosed Confidential information under USPAP is information the appraiser receives from: - CORRECT ANSWER The client and is identified as confidential, but is not available from other sources The disclosure of confidential information to a third party is unethical unless: - CORRECT ANSWER authorized by the client A subject property's physical characteristics are ________ assignment results. - CORRECT ANSWER not An appraiser prepared an appraisal report in April 2015. He testified in court regarding the value of the property in January 2016. The decision was rendered in February 2016 and was appealed in March 2016. The appellate court heard the case in January 2017 and remanded the case for reconsideration by the lower court. Final disposition of the case occurred in September 2017. At a minimum, how long must the appraiser retain his workfile? - CORRECT ANSWER April 2020 (5 years after appraisal report, April 2015) Which statement about an appraiser's workfile is TRUE? - CORRECT ANSWER The workfile must be in existence prior to the issuance of a report. Which statement best describes the word "competency" as it relates to appraisal practice? - CORRECT ANSWER It is fundamental to the definition of "appraiser." An appraiser accepts an assignment for which she initially does not have the knowledge and experience. She notifies the client of her lack of knowledge and experience and takes the necessary steps to acquire the knowledge and experience. What else (if anything) must she do to comply with USPAP? - CORRECT ANSWER Disclose in the report her initial lack of competency and the steps taken to obtain competency In order to accept an assignment when an appraiser initially lacks the knowledge and experience to complete an assignment competently, he or she must: - CORRECT ANSWER Disclose to the client, prior to accepting the assignment, the lack of knowledge or experience Which statement about appraisal trainees and workfile obligations is TRUE? - CORRECT ANSWER Under USPAP, trainees have the same workfile obligations as licensed or certified appraisers. In order to determine the appropriate scope of work, the appraiser must ________ the problem to be solved. - CORRECT ANSWER identify The credibility of assignment results is measured in the context of: - CORRECT ANSWER the intended use Appraisers have broad _________ and significant _________ in determining the appropriate scope of work in an assignment. - CORRECT ANSWER Flexibility, responsibility Intended use is: - CORRECT ANSWER Identified by the appraiser on the basis of communication with the client Determining the scope of work requires: - CORRECT ANSWER Information obtained through communication with the client Identification of the intended use of an appraiser's opinions and conclusions is: - CORRECT ANSWER Necessary for determining the appropriate scope of work The responsibility for the scope of work decision rests with the: - CORRECT ANSWER appraiser In an assignment, the scope of work is an ___________ process. - CORRECT ANSWER ongoing Exclusion of a valuation approach that is not applicable in a given assignment is an example of: - CORRECT ANSWER a scope of work decision An appraiser's report must contain ____________ to allow intended users to understand the scope of work performed. - CORRECT ANSWER sufficient information An appraiser must not allow client objectives to cause the assignment results to be: - CORRECT ANSWER biased Scope of work has no disclosure requirements. - CORRECT ANSWER false If a client's objectives result in an appraiser developing biased assignment results: - CORRECT ANSWER the appraiser is solely responsible An appraiser's peers are defined as other appraisers who: - CORRECT ANSWER Have expertise and competency in a similar type of assignment What is the purpose of the JURISDICTIONAL EXCEPTION RULE? - CORRECT ANSWER To preserve the balance of USPAP if compliance with a part of USPAP is precluded by law or regulation If an assignment involves a jurisdictional exception, what must an appraiser do? - CORRECT ANSWER 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: - CORRECT ANSWER Comply with that law or regulation If a law or regulation precludes an appraiser with complying with a part of USPAP: - CORRECT ANSWER A jurisdictional exception is automatically created Appraisers cannot be expected to be aware of all of the laws and regulations that apply to a particular assignment. - CORRECT ANSWER false As used in the JURISDICTIONAL EXCEPTION RULE, the term "law" includes ____________. - CORRECT ANSWER Constitutions, legislative and court-made law, and administrative rules and ordinances Which statement is FALSE regarding STANDARD 1? - CORRECT ANSWER It covers real and personal property appraisal development. The requirements of STANDARD 1 can be used as a checklist by an appraiser who is developing a real property appraisal. - CORRECT ANSWER true When does a series of minor errors potentially result in a USPAP violation? - CORRECT ANSWER When the series of errors affects the credibility of the results STANDARD 1 requires an appraiser to ____________ in developing a real property appraisal. - CORRECT ANSWER Use due diligence and due care Exposure time is: - CORRECT ANSWER Always assumed to precede the effective date of the appraisal When is identification of the intended use of an appraiser's opinions and conclusions necessary in an appraisal assignment? - CORRECT ANSWER it is necessary in all appraisal assignments If a borrower receives a copy of an appraisal report from a mortgage lender as a result of disclosure requirements: - CORRECT ANSWER This does not make the borrower an intended user If a client in an appraisal assignment wishes to remain anonymous, the appraiser must: - CORRECT ANSWER Document the client's identity in the workfile and state in the report that the client's identity has been withheld at the client's request What should an appraiser do if, during the course of an assignment, he or she becomes aware of a change in the intended use of the report? - CORRECT ANSWER Consider whether the extent of the planned development process and report are still appropriate What is the primary purpose of an appraiser making an inspection of the subject property? - CORRECT ANSWER 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: - CORRECT ANSWER The fact that the subject property is affected by an easement When appraising proposed improvements, what type of appraisal is permitted by USPAP? (Select the most complete answer. - CORRECT ANSWER both current and prospective 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. - CORRECT ANSWER hypothetical condition An extraordinary assumption may be used in an assignment only if: - CORRECT ANSWER The appraiser has a reasonable basis for the extraordinary assumption An appraiser performs a research assignment, in which the appraiser completes research for a client but does not develop any opinions or conclusions. Which statement is TRUE regarding this assignment? - CORRECT ANSWER This is not an appraisal, but it is part of appraisal practice. Which statement is TRUE regarding USPAP and the three approaches to value? - CORRECT ANSWER An assignment condition may require an appraiser to develop an approach that he or she would otherwise consider unnecessary. When developing a sales comparison approach under USPAP: - CORRECT ANSWER The appraiser must analyze such data as are available to indicate a value conclusion When analyzing the subject property's sales history in a real property appraisal assignment, an appraiser is required by USPAP to analyze ______________. - CORRECT ANSWER All sales of the subject property that occurred within three years prior to the effective date of the appraisal If an appraiser is asked to appraise a property on which there is a known, current agreement of sale, the agreement must be: - CORRECT ANSWER analyzed in the appraisal When analyzing listings of the subject property in a real property appraisal assignment, USPAP requires an appraiser to analyze, at a minimum, ____________. - CORRECT ANSWER current listings When is it necessary to analyze prior listings of the subject property in a real property appraisal assignment? - CORRECT ANSWER When such analysis is relevant to the current assignment The process of reconciliation entails ___________. - CORRECT ANSWER Careful consideration of the quality and quantity of data Standards Rule 1-5 requires an appraiser to analyze the sales history of the comparable sales. - CORRECT ANSWER false STANDARD 2 sets forth requirements for: - CORRECT ANSWER Appraisal report content The use of standard appraisal reporting forms: - CORRECT ANSWER Is not required by STANDARD 2 The written report options set forth in Standards Rule 2-2 are - CORRECT ANSWER Appraisal Report and Restricted Appraisal Report What is the importance of stating the date of the report? - CORRECT ANSWER It establishes the appraiser's perspective on the market Which of the following is NOT required by USPAP to be in an Appraisal Report? - CORRECT ANSWER client's specific name In a Restricted Appraisal Report, the exclusion of any of the valuation approaches must be: - CORRECT ANSWER explained In an Appraisal Report, the scope of work used to develop the appraisal must be: - CORRECT ANSWER summarized Compared to a value opinion expressed in an Appraisal Report, a value opinion expressed in a Restricted Appraisal Report is: - CORRECT ANSWER equally credible Which statement is TRUE regarding a workfile for an assignment in which a Restricted Appraisal Report is provided? - CORRECT ANSWER The appraiser must maintain a workfile for this assignment In an appraisal assignment, an appraiser identifies an additional intended user in addition to the client. Does USPAP permit the appraiser to provide a Restricted Appraisal Report in this assignment? - CORRECT ANSWER no When an extraordinary assumption is used in an appraisal, the report must state the extraordinary assumption and: - CORRECT ANSWER state that its use may have affected the assignment results Does USPAP require an appraiser to disclose any significant real property appraisal assistance that was provided in an appraisal assignment? - CORRECT ANSWER yes, in all cases According to USPAP, any appraiser who signs any part of an appraisal report is required to: - CORRECT ANSWER sign the certification What is the purpose of including a signed certification in an appraisal report? - CORRECT ANSWER for the appraiser to acknowledge his or her ethical obligations An appraiser provides an oral report of a real property appraisal assignment. Which statement is CORRECT? - CORRECT ANSWER The appraiser must add a signed and dated certification to her appraisal workfile. A written summary of an oral appraisal report must be added to the appraiser's workfile ______________ the issuance of an oral report. - CORRECT ANSWER within a reasonable time after To the extent possible and appropriate, oral appraisal reports for real property must address the substantive matters that apply to a(n) - CORRECT ANSWER appraisal report Which statement is TRUE regarding a Recertification of Value? - CORRECT ANSWER It does not change the effective date of the value. If a client requests a more current valuation on a property that was the subject of a prior assignment, this is a(n) ____________. - CORRECT ANSWER new assignment USPAP requires an appraiser to obtain a release from a previous client before appraising the same property for a new client. - CORRECT ANSWER false 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? - CORRECT ANSWER He is not permitted to "readdress" the report to Bank B The client must be the only intended user for: - CORRECT ANSWER Restricted Appraisal Reports If a supervising appraiser makes changes to a trainee's appraisal report which the trainee does not agree with, the trainee should: - CORRECT ANSWER not sign the certification STANDARD 3 addresses the development of an appraisal review, and _________ addresses reporting of an appraisal review. - CORRECT ANSWER STANDARD 4 Appraisal review is the process of ___________ an opinion about the quality of another appraiser's work performed as part of an appraisal or appraisal review assignment. - CORRECT ANSWER developing Under USPAP, an appraisal review is performed by an appraiser when developing an opinion of the quality of another appraiser's work that was performed as part of _____________ assignment. - CORRECT ANSWER an appraisal only A reviewer is required to identify the appraiser who completed the work under review, unless: - CORRECT ANSWER the identity has been withheld from the client A review appraiser may use additional information that was not available to the original appraiser as long as the information: - CORRECT ANSWER is not used as the basis to discredit the original appraiser's value opinion Does USPAP permit a reviewer to use an extraordinary assumption in a review assignment? - CORRECT ANSWER yes Which statement is TRUE regarding USPAP and the appraisal review process for real property? - CORRECT ANSWER If the reviewer develops his or her own opinion of value, it must be developed under the requirements of STANDARD 1. An appraisal review can be a two-stage assignment: an appraisal review and a value opinion by the reviewer. - CORRECT ANSWER true A reviewer has been requested to also develop her own value opinion in a review assignment. Which statement is TRUE regarding this situation? - CORRECT ANSWER The reviewer may use a different scope of work than the original appraiser. Consistent with the reviewer's scope of work, a reviewer must develop an opinion regarding: (Select the most complete answer.) - CORRECT ANSWER The completeness, accuracy, and reasonableness of the work under review An appraiser performs an appraisal review and develops her own opinion of property value as part of the assignment. When reporting the assignment results, the appraiser needs to provide ____ signed certification(s). - CORRECT ANSWER one A reviewer is responsible for ensuring that there is __________ in a review report so that it can be properly understood by __________. - CORRECT ANSWER sufficient information, intended users If a client withholds the identity of the appraiser who completed the work under review, the reviewer: - CORRECT ANSWER must state this fact in the review report An appraisal review report: - CORRECT ANSWER must be separate from the work under review A reviewer performing an appraisal review must not sign the work under review unless he or she: - CORRECT ANSWER intends to accept the responsibility as a co-signer of the work If a reviewer provides an oral report of an appraisal review: - CORRECT ANSWER a signed certification must be inserted into the workfile A statement by a reviewer that "the value opinion stated in the appraisal report is not adequately supported" would be an indication that the reviewer ________ develop his or her own value opinion. - CORRECT ANSWER did not Which of these examples indicates that a reviewer DID NOT develop his own opinion of value in an appraisal review assignment? - CORRECT ANSWER 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: - CORRECT ANSWER this is a two-stage assignment The process of valuing a universe of properties using standard methodology, employing common data, and allowing for statistical testing is: - CORRECT ANSWER mass appraisal STANDARD 5, Mass Appraisal, Development, applies to: - CORRECT ANSWER both real and personal property In a written mass appraisal report prepared under STANDARD 6, what is the purpose of a signed certification? - CORRECT ANSWER It serves as an appraiser's acknowledgement of his or her ethical obligations 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? - CORRECT ANSWER STANDARDS 1 and 2 Notifications sent to property owners of the results of a mass appraisal, which may be required by public policy, are considered: - CORRECT ANSWER notifications, and not reports In a personal property appraisal assignment that includes multiple objects as part of the same assignment: - CORRECT ANSWER The objects that are more significant to the assignment results should be the focus of the analysis When appraising personal property, the appraiser must analyze prior sales of the subject over what time period? - CORRECT ANSWER a reasonable and applicable time An appraiser must recognize that there are distinct levels of trade in personal property, and each may have different comparable data. - CORRECT ANSWER true Under STANDARD 8, a personal property appraiser has ____ written report options. - CORRECT ANSWER two Which of the following reports require a signed certification? - CORRECT ANSWER All oral and written reports covered in USPAP When reporting the results of a business appraisal, which of these is NOT a permissible option for an appraiser? - CORRECT ANSWER limited report An appraiser's certification in a business or intangible asset appraisal report does NOT: - CORRECT ANSWER Contain a reference to the inspection of the subject property A written business appraisal report must be prepared in accordance with which of the following options? - CORRECT ANSWER Appraisal Report or Restricted Appraisal Report An evaluation of real property collateral, as defined in the Agencies' Guidelines, is considered _________ under USPAP. - CORRECT ANSWER an appraisal An appraiser is valuing an environmentally contaminated property. Does USPAP require the appraiser to be an expert in the scientific aspects of contamination? - CORRECT ANSWER no In an appraisal report, the use of terms that reflect a scale such as "good" or "average": - CORRECT ANSWER Should include explanation that provides context The use of supported conclusions related to race, color, or religion in an appraisal may be prohibited by applicable law. - CORRECT ANSWER true The competency required to appraise subsidized housing __________ typical residential appraisal competency. - CORRECT ANSWER extremes beyond An appraiser provides raw AVM output to a lender. This is: - CORRECT ANSWER Not an appraisal, and no workfile is required Which statement about the definition of market value is TRUE? - CORRECT ANSWER There are many different definitions of market value; each one is unique. A value opinion developed to reflect the most probable price under a forced-sale condition is: - CORRECT ANSWER Not consistent with the market value Laws and regulations that apply to an appraisal for a federally-regulated lending transaction would be considered: - CORRECT ANSWER Assignment conditions Appraisals for federally-regulated financial institutions often involve the use of the JURISDICTIONAL EXCEPTION RULE. - CORRECT ANSWER false If an appraiser uses a commercial software program for Discounted Cash Flow (DCF) analysis in an appraisal, what should the appraiser provide in the report? - CORRECT ANSWER The name and version of the software program The results of DCF analysis should: - CORRECT ANSWER Be tested and checked for errors and reasonableness Developing an opinion of value of a property as of a specified future date is: - CORRECT ANSWER a prospective appraisal What type of appraisal would be indicated by the phrase, "the market value of the subject property was $200,000"? - CORRECT ANSWER retrospective An appraiser is using a computer program as a computer-assisted valuation tool and this program makes an error that affects the valuation. Who is responsible for this error? - CORRECT ANSWER the appraiser What does the effective date of an appraisal establish? - CORRECT ANSWER The context of the market conditions for the appraiser's opinions [Show More]

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