15 HR National USPAP 2020-2021, USPAP 15-Hour Course, Mckissock USPAP Chapter 1-9,100% CORRECT

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15 HR National USPAP 2020-2021, USPAP 15-Hour Course, Mckissock USPAP Chapter 1-9 15 HR National USPAP 2020-2021, USPAP 15-Hour Course, 15-Hour USPAP Course, Mckissock USPAP Chapter 1, Mckissock US... PAP Chapter 2 (Definitions), McKissock USPAP Chapter 4, Mckissock USPAP Chapter 7, Mckissock USPAP Chapter 8, Mckissock USPAP Chapter 9... What is USPAP? - CORRECT ANSWER Uniform Standards of Professional Appraisal Practice Why was USPAP developed? - CORRECT ANSWER To promote and maintain a high level of public trust as well as confidence in professional appraisal practice What are the benefits of USPAP? - CORRECT ANSWER 1) Provides a common basis for comparison (eg are we doing the appropriate work for the type of assignment?) 2) Provides a reference source for all users of the document. 3) Provides a basis for uniform enforcement for state regulatory agencies. 4) Provides a reason for clients, other intended users, and the public to place their trust in the services performed by professional appraisers. What is the role of the Appraisal Standards Board (ASB) of The Appraisal Foundation? - CORRECT ANSWER To develop, interpret, and amend the Uniform Standards of Professional Appraisal Practice (USPAP). What are the five sections of USPAP? - CORRECT ANSWER Preamble Definitions Rules Standards (Including Standards Rules) Statements on Appraisal Standards (currently no active statements) Are the Advisory Opinions (AO) and the Frequently Asked Questions (FAQ) a part of USPAP? - CORRECT ANSWER NO. These are reference materials of "Other Communications". They are for guidance only. These communications do not establish new Standards or interpret existing Standards and are not a part of USPAP. Who enforces the adherence and content of USPAP? - CORRECT ANSWER State and Federal Regulatory Authorities Who appoints the ASB (Appraisal Standards Board)? - CORRECT ANSWER Members are appointed by the BOT (Board of Trustees) What is the purpose of USPAP? - CORRECT ANSWER The purpose is to promote and maintain a high level of public trust in appraisal practice by establishing requirements for appraisers. Who does the ASB (Appraisal Standards Board) promulgate USPAP for? - CORRECT ANSWER It is promulgated for both appraisers and users of appraisal services. What is the appraiser's responsibility? - CORRECT ANSWER It is to protect the overall public trust. How does USPAP address the ethical and performance obligations of appraisers? - CORRECT ANSWER USPAP addresses the ethical and performance obligations of appraisers through DEFINITIONS, RULES, STANDARDS, STANDARDS RULES, and STATEMENTS (there are currently no active statements). What do the DEFINITIONS portion of USPAP establish? - CORRECT ANSWER The DEFINITIONS establish the application of certain terminology in USPAP. What is the purpose of the ETHICS RULE? - CORRECT ANSWER The ETHICS RULE sets forth the requirements for integrity, impartiality, objectivity, independent judgment, and ethical conduct. What does the RECORD KEEPING RULE establish? - CORRECT ANSWER The RECORD KEEPING RULE establishes the workfile requirements for appraisal and appraisal review assignments. What does the COMPETENCY RULE do? - CORRECT ANSWER The COMPETENCY RULE presents pre-assignment and assignment conditions for knowledge and experience. Wat does the SCOPE OF WORK RULE do? - CORRECT ANSWER The SCOPE OF WORK RULE presents obligations related to problem identification, research, and analysis. What doe the JURISDICTIONAL EXCEPTION RULE do? - CORRECT ANSWER The JURISDICTIONAL EXCEPTION RULE preserves the balance of USPAP if a portion is contrary to law or public policy of a jurisdiction. What is the purpose of the STANDARDS? - CORRECT ANSWER The STANDARDS establish the requirements for appraisal and appraisal review and the manner in which each is communicated. What is the purpose of STANDARDS 1 and 2? - CORRECT ANSWER STANDARDS 1 & 2 establishes requirements for the development and communication of a real property appraisal. What is the purpose of STANDARDS 3 and 4? - CORRECT ANSWER STANDARDS 3 and 4 establishes requirements for the development and communication of an appraisal review. What is the purpose of STANDARDS 5 and 6? - CORRECT ANSWER STANDARDS 5 & 6 establishes requirements for the development and communication of a mass appraisal. What is the purpose of STANDARDS 7 and 8? - CORRECT ANSWER STANDARDS 7 and 8 establishes requirements for the development and communication of a personal property appraisal. What is the purpose of STANDARDS 9 and 10? - CORRECT ANSWER STANDARDS 9 & 10 establishes requirements for the development and communication of a business or intangible asset appraisal. What is the purpose of the COMMENTS of USPAP? - CORRECT ANSWER Comments are an integral part of USPAP and have the same weight as the component they address. These extensions of the DEFINITIONS, RULES, and STANDARDS RULES provide interpretation and establish the context and conditions for application. Does USPAP establish who or which assignments must comply? - CORRECT ANSWER NO. USPAP does not establish who or which assignments must comply. What are the limitations of The Appraisal Foundation? - CORRECT ANSWER The Appraisal Foundation is not a government entity. It does not have the power to make, judge, or enforce law. What are the limitations of the Appraisal Standards Board? - CORRECT ANSWER The Appraisal Standards Board is not a government entity. It does not have the power to make, judge, or enforce law. When must an appraiser comply with USPAP? - CORRECT ANSWER An appraiser must comply with USPAP when either the service or the appraiser is required by law, regulation, or agreement with the client. Individuals may also choose to comply with USPAP any time that individual is performing the service as an appraiser. What must an appraiser do to comply with USPAP? - CORRECT ANSWER - An appraiser must act competently and in a manner that is independent, impartial, and objective. - An appraiser must comply with the ETHICS RULE in all aspects of appraisal practice. - An appraiser must maintain the data, information and analysis necessary to support his or her opinions for appraisal and appraisal review assignments in accordance with the RECORD KEEPING RULE. - An appraiser must comply with the COMPETENCY RULE and the JURISDICTIONAL EXCEPTION RULE for all assignments. - When an appraiser provides an opinion of value in an assignment, the appraiser must also comply with the SCOPE OF WORK RULE, the RECORD KEEPING RULE, the applicable development and reporting Standards and applicable Statements (there are currently no active Statements). - When an appraiser provides an option about the quality of another appraiser's work that was performed as part of an appraisal or appraisal review assignment, the appraiser must also comply with the SCOPE OF WORK RULE, the RECORD KEEPING RULE, applicable portions of STANDARDS 3 and 4, and applicable Statements (there are currently no active Statements). - When preparing an appraisal or appraisal review that is a component of a large assignment with additional opinions, conclusions, or recommendations, the appraisal or appraisal review component must comply with the applicable development and reporting Standards and applicable Statements (there are currently no active Statements), and the remaining component of the assignment must comply with the ETHICS RULE, the COMPETENCY RULE, and the JURISDICTIONAL EXCEPTION RULE. APPRAISAL - CORRECT ANSWER The act or process of developing an opinion of value; an opinion of value. The act of or pertaining to appraising and related functions such as appraisal practice or appraisal services. APPRAISAL PRACTICE - CORRECT ANSWER Valuation services performed by an individual acting as an appraiser, including but not limited to appraisal and appraisal review. APPRAISAL REVIEW - CORRECT ANSWER The act or process of developing and an opinion about the quality of another appraiser's work that was performed as part of an appraisal or appraisal review assignment. - CORRECT ANSWER The Preamble states that USPAP is - CORRECT ANSWER for appraisers and users of appraisal services. The stated purpose of USPAP - CORRECT ANSWER Promote and maintain a high level of public trust in appraisal practice. When obligated by law or regulation an appraiser must - CORRECT ANSWER comply with USPAP. USPAP applies to which types of properties? - CORRECT ANSWER Tangible and Intangible Valuation services - CORRECT ANSWER is not a subset of appraisal practice. An appraiser has the professional responsibility - CORRECT ANSWER to identify the capacity in which he or she is performing. Reasons why an appraiser would prepare an appraisal assignment in conformance with USPAP - CORRECT ANSWER 1. Agreement with client. 2. Law or regulation. 3. Voluntary choice. An appraiser who provides an appraisal service that is not an appraisal, appraisal review, or appraisal consulting assignment does not have workfile obligations associated with the assignment. - CORRECT ANSWER True An individual is not prohibited from providing valuation services that involve advocacy while acting as an appraiser. - CORRECT ANSWER False 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 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 acting as an appraiser. An appraiser is engaged to teach an appraisal course. What parts of USPAP apply? - CORRECT ANSWER The parts of USPAP that apply generally to appraisal practice. The Appraisal Practices Board (APB) was created when? - CORRECT ANSWER 2010 The APB is a(n) - CORRECT ANSWER independent board. Boards within The Appraisal Foundation (TAF) - CORRECT ANSWER 1. Board of Trustees (BOT) 2. Appraisal Standards Board (ASB) 3. Appraisal Qualifications Board (AQB) 4. Appraisal Practices Board (APB) APB is a - CORRECT ANSWER private entity. The APB has authority to enforce the requirements of USPAP. - CORRECT ANSWER False Who has the only jurisdiction and authority over appraisers? - CORRECT ANSWER States ASB - CORRECT ANSWER Develops, interprets, and amends USPAP. Advisory opinions - CORRECT ANSWER Not part of USPAP; reference material only. APB - CORRECT ANSWER Guidance is voluntary. ASC - CORRECT ANSWER Maintains the official National Registry of state certified and licensed appraisers. State appraisal regulatory committees - CORRECT ANSWER responsible for issuing credentials to individual appraisers. Responsibilities of ASC: - CORRECT ANSWER • Establishes, improves, and promulgates the USPAP • Subject, content, and substance of USPAP and other communication related to appraisal standards. • Establishes standards of professional appraisal practice for the guidance and education of appraisers and users of appraisal services. • Maintains the official National Registry of state certified and licensed appraisers. Developing, amending, and interpreting USPAP is NOT a responsibility of - CORRECT ANSWER ASC 12. USPAP divides the appraisal process into two distinct types of activity: - CORRECT ANSWER Develop and report Identify the problem - CORRECT ANSWER The first step in the appraisal process. Communication - CORRECT ANSWER The reporting process involves ________________ of the appraiser's opinions and conclusions. AQB - CORRECT ANSWER • Disseminates to state appraisal boards the qualifications criteria for appraiser certifications and recertification. • Responsible for establishing education and experience requirements for licensing and certification of appraisers. BOT - CORRECT ANSWER appoints members of the APB, AQB, ASB. The ethical obligations of USPAP apply to - CORRECT ANSWER Individual appraisers. Bias - CORRECT ANSWER is never allowed. In appraisal practice, advocating the cause or interest of any party or issue is - CORRECT ANSWER never permitted. If an appraiser has appraised a property multiple times within the prior 3 years he must disclose the number of times he appraised the property to a prospective client. - CORRECT ANSWER True 3 years - CORRECT ANSWER Prior to accepting an assignment, an appraiser must disclose any service he provided regarding the subject property for a period of 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? - CORRECT ANSWER No The payment of fees by the appraiser in connection with the procurement of an assignment is - CORRECT ANSWER allowed if properly disclosed. Confidential information is under USPAP is information the appraiser receives from - CORRECT ANSWER the client an dis 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. Competency - CORRECT ANSWER fundamental to the definition of appraiser. An appraiser must obtain the necessary competency prior to accepting the assignment. - CORRECT ANSWER False In order to accept an assignment when an appraise initially lacks the knowledge and experience to complete an assignment competently he must - CORRECT ANSWER Disclose to the client, prior to accepting, the lack of knowledge or experience. USPAP ________________ permit an appraiser to create a workfile after transmitting the report to the client. - CORRECT ANSWER does not An appraiser prepared an appraisal report in April 2009. He testified in court regarding the value of the property in January 2010. The decision was rendered in February 2010 and was appealed in March 2010. The appellate court heard the case in January 2011 and remanded the case for reconsideration by the lower court final disposition of the case occurred in Sept 2011. At a minimum, how long must the appraiser retain his workfile? - CORRECT ANSWER April 2014 Three appraisers work together on an appraisal consulting assignment. What would NOT be an appropriate workfile arrangement under USPAP? - CORRECT ANSWER The workfile is posted on the internet,s o that anyone who wants to see it will be able to see it. Trainer appraiser have the same workfile obligations under USPAP as certified or licensed appraisers. - CORRECT ANSWER True An appraiser's peers - CORRECT ANSWER Others who have expertise and competency in a similar type of assignment. Scope of Work in USPAP - CORRECT ANSWER The report must contain sufficient information so that intended users understand the scope of work. Scope of work decision - CORRECT ANSWER Exclusion of an approach that is not necessary for credible, results in a given assignment. Jurisdictional exception in an assignment - CORRECT ANSWER Identify the law, comply with the laws, disclose in the report the part of USPAP that is voided, and cite in the report the law that caused it. Comply with the law or regulation - CORRECT ANSWER When a law or regulation precludes compliance with any part of USPAP, appraisers must. Purpose of the Jurisdictional exclusion rule - CORRECT ANSWER To provide a saving or severability clause to preserve the balance of USPAP. True - CORRECT ANSWER If USPAP compliance is mandated by federal law, no state or local law can create a jurisdictional exclusion. Jurisdictional exclusion rule term "law" - CORRECT ANSWER Legislative law, court-made laws, and administrative rules and ordinances. False - CORRECT ANSWER Appraisers cannot be expected to be aware of all of the laws and regulations that apply to a particular assignment. False - CORRECT ANSWER The use of the jurisdictional exclusion rule in an assignment is a matter of choice by an appraiser. False - CORRECT ANSWER A state passes a law requiring appraisers to keep their workfiles for 10 years after preparation. This is considered a jurisdictional exclusion under USPAP. Jurisdictional exclusion example - CORRECT ANSWER A probate court paying appraisers based on the value of the subject. Occurrence of a jurisdictional exclusion - CORRECT ANSWER It is automatic when a law precludes compliance with a part of USPAP. 6 Standard Rules - CORRECT ANSWER Standard 1 contains this many rules. The development of a real (only) property appraisal. It mirrors the appraisal process and can be used as a conventional checklist. - CORRECT ANSWER Standard 1. The requirements of Standard 1. - CORRECT ANSWER Used as a checklist by an appraiser who is developing a real property appraisal. does not require - CORRECT ANSWER Standard 1 _________________ an appraiser to achieve perfection in developing a real property appraisal. When the series of errors affects the credibility of the results. - CORRECT ANSWER When does a series of minor errors potentially result in a USPAP violation? Consider whether the extent of the planned development process and report are still appropriate. - CORRECT ANSWER What should an appraiser do if, during the course of an assignment, becomes aware of a change in the intended use of the report? This does not make the borrower an intended user. - CORRECT ANSWER If a borrower receives a copy of an appraisal report from a mortgage lender as a result of disclosure requirements: An appraiser must document the client's identity in the workfile. - CORRECT ANSWER If a client wishes to remain anonymous the appraiser must: Exposure time - CORRECT ANSWER Is always assumed to precede the effective date of the appraisal. False - CORRECT ANSWER Identification of the intended use of an appraisers opinions and conclusions is not necessary in most appraisal assignments. Identify the special financing to form and develop an opinion on their effect on value. - CORRECT ANSWER Special requirements when appraising the market value of a property subject to favorable financing. To collect information about characteristics that are relevant to value. - CORRECT ANSWER The primary purpose of an appraiser making an inspection of the subject property. True - CORRECT ANSWER When appraising proposed improvements, both current and prospective value opinions are permitted by USPAP. The fact that the subject property is affected by an easement. - CORRECT ANSWER An example of a relevant property characteristic that could affect a real property appraisal assignment. True - CORRECT ANSWER An appraiser may use an combination of a property inspection and documentation in identifying relevant characteristics of the subject property. Hypothetical condition - CORRECT ANSWER When an appraiser provides a current value opinion on a proposed new building based upon the proposed improves are completed as of the effective date of the appraisal. Extraordinary assumption - CORRECT ANSWER Only if required to develop credible results. False - CORRECT ANSWER A research assignment, in which an appraiser completes research for a client but does not develop an opinion or conclusion, is not part of appraisal practice. 1. Limits the scope of work to the extent that the value opinion is not credible. 2. Precludes an appraiser's impartiality. 3. Limits report content, resulting in a misleading report. - CORRECT ANSWER Unacceptable assignment condition. Step 3 - CORRECT ANSWER Date Collection and Analysis Market Analysis - CORRECT ANSWER Demand Studies Supply Studies Marketability Studies Highest and Best Use Analysis - CORRECT ANSWER Site as though vacant. Ideal Improvement Property as Improved Step 4 - CORRECT ANSWER Application of the Approaches Value Cost / Sales Comps / Income Captitalization An assignment condition may require an appraiser to develop an approach that he or she would otherwise consider unnecessary. - CORRECT ANSWER USPAP and the 3 approaches to value. The appraiser must analyze such data as are available to indicated value conclusion. - CORRECT ANSWER When developing a sales comp approach under USPAP. Current Listings - CORRECT ANSWER When analyzing listings of the subject property in a real property appraisal assignment, USPAP requires, at a minimum, ___________to be analyzed. Analyzed in the appraisal - CORRECT ANSWER If an appraiser is asked to appraise a property on which there is known, current agreement of sale, the agreement must be All sales of the subject property that occurred within 3 years of the effective date of the appraisal. - CORRECT ANSWER When analyzing the subject property's sales history in a real property appraisal assignment, an appraiser is required by USPAP to analyze Step 5 - CORRECT ANSWER Reconciliation of Value Indications and Final Opinions of Value Careful consideration of the quality and quantity of data - CORRECT ANSWER The process of reconciliation entails False - CORRECT ANSWER Standard Rules 1-5 require an appraiser to analyze the sales history of the comps When such analysis is relevant to the current assignment - CORRECT ANSWER When is it necessary to analyze prior listings of the subject property in a real property appraisal assignment. Step 6 - CORRECT ANSWER Report of Defined Value Opinions Not required by Standard 2 - CORRECT ANSWER The use of standard appraisal reporting forms. Standard 2 - CORRECT ANSWER Sets forth requirements for appraisal report content. Summary Self-Contained Restricted Use - CORRECT ANSWER The 3 written report options stated in Standards Rule 2-2 The level of detail and information - CORRECT ANSWER The essential differences among the 3 reporting options. Client's specific name - CORRECT ANSWER Not required by USPAP to be in a Summary Appraisal Report Effective Date and Report Date - CORRECT ANSWER Must be included when reporting the results of an appraisal. The date of the report - CORRECT ANSWER Establishes the appraiser's perspective on the market. The exclusion of any of the valuation approaches - CORRECT ANSWER Must be explained in a Restricted Use Appraisal Report Scope of work used to develop the appraisal must be summarized - CORRECT ANSWER In a Summary Appraisal Report Must be stated and state that its use may have affected the assignment results. - CORRECT ANSWER An extraordinary assumption used in an appraisal, False - CORRECT ANSWER A workfile is not required in support of a Restricted Use Appraisal Report Equally credible - CORRECT ANSWER A value opinion expressed in a Summary Appraisal Report and a value opinion expressed in a Restricted Use Appraisal Report are False - CORRECT ANSWER There can be intended users other than the client for a Restricted Use Appraisal Report. Sign the certification - CORRECT ANSWER According to USPAP, any appraiser who signs any part of an appraisal report is required to False - CORRECT ANSWER The disclosure of a significant real property appraisal assistance provided in an appraiser's report is not required under USPAP. For the appraiser to acknowledge his/her ethical obligations. - CORRECT ANSWER The purpose of including a signed certification in an appraisal report. True - CORRECT ANSWER A written summary of an oral appraisal report must be added to the appraiser's workfile within a reasonable time after the issuance of an oral report. The appraiser must add a signed and dated certification to her appraisal workfile. - CORRECT ANSWER An appraiser provides an oral report of a real property appraisal assignment Summary Appraisal Report - CORRECT ANSWER To the extent possible and appropriate, oral appraisal reports for real property must address the substantive matters that apply to this report. True - CORRECT ANSWER A Recertification of Value does not change the effective date of the value opinion. He is not permitted to "readdress" the report to Bank B. - CORRECT ANSWER 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.... New Assignment - CORRECT ANSWER If a client requests a more current valuation on a property that was the subject of a prior assignment, this is a False - CORRECT ANSWER USPAP requires an appraiser to obtain a release from a previous client before appraising the same property for a new client. The client is the only intended user - CORRECT ANSWER Restricted Use Appraisal Report Not sign the certification - CORRECT ANSWER If a supervising appraiser makes changes to a trainee's report which the trainee does not agree with, the trainee should communicating, developing - CORRECT ANSWER Appraisal review is the process of _______________ and ____________ an opinion about the quality of another appraiser's work performed as part of an appraisal, appraisal review, or appraisal consulting assignment. Standards are paired - CORRECT ANSWER A major difference bewteen STANDARDS for real property appraisal review is? One - CORRECT ANSWER How many STANDARDS address appraisal review? True - CORRECT ANSWER A reviewer is required to identify the appraiser who completed the work under review, unless the identity has been withheld by the client. Appraisal Review Appraisal Real Property Appraisal Consulting - CORRECT ANSWER Under STANDARD 3, what can be reviewed? Not used as the basis to discredit the original appraiser's value opinion. - CORRECT ANSWER A review appraiser may use additional information that was not available to the original appraiser as long as the information is: False - CORRECT ANSWER It is not permissible for a review appraiser to use an extraordinary assumption in a review assignment. 2-Stage - CORRECT ANSWER An appraisal review can be a _______________ assignment; an appraisal review and a value opinion by the reviewer. False - CORRECT ANSWER An appraiser must develop an opinion regarding the qualifications of the appraiser whose work is under review. STANDARD 1 - CORRECT ANSWER If an appraiser develops his own opinion of value, it must be developed under the requirements of _____________ Scope of Work - CORRECT ANSWER A reviewer who develops his own value opinion may use a different _____________ than that of the work under review. Sufficient information, intended users - CORRECT ANSWER A reviewer is responsible for ensuring that there is _________________ in a review report so that it can be properly understood by ________________. False - CORRECT ANSWER Under certain circumstances, a reviewer may use information that was not available to the original appraiser to dispute the work of the appraiser. Must state this fact in the review report - CORRECT ANSWER If a client witholds the identity of the appraiser who completed the work under review, the reviewer True - CORRECT ANSWER The reviewer performing an appraisal review must not sign the work under review unless he/she intends to accept the responsibility as a co-signor of the work. A signed certification must be inserted into the workfile - CORRECT ANSWER If a reviewer provides an oral report of an appraisal review: Reject the value conclusion as lacking credibility due to the errors and inconsistencies found. - CORRECT ANSWER Indicates a reviewer DID NOT develop his own opinion of value in an appraisal review assignment: TRUE - CORRECT ANSWER 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 DID NOT develop his or her own value opinion. This is a 2-Stage Assignment - CORRECT ANSWER 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: Is not an opinion of value - CORRECT ANSWER An appraisal consulting assignment: Determine the quality of another appraiser's work - CORRECT ANSWER An appraisal consulting assignment does not specific - CORRECT ANSWER There are no __________ reporting options for written real property appraisal consulting reports. Intended use and intended users - CORRECT ANSWER The appropriate level of information in a real property appraisal consulting report is dictated by Both real and personal property - CORRECT ANSWER STANDARD 6, Mass Appraisal, applies to: STANDARD 3 - CORRECT ANSWER STANDARD 6 is most similar in structure to: It serves as an appraiser's acknowledgement of his/her ethical obligations. - CORRECT ANSWER In a written appraisal report prepared under STANDARD 6, what is the purpose of a signed certification? Notifications and not reports - CORRECT ANSWER Notifications sent to property owners of the results of a mass appraisal, which may be required by public policy, are considered STANDARDS 1 and 2 - CORRECT ANSWER An appraiser is engaged by her local count assessment board to complete an appraisal of an apartment building for ad valoram taxation purposes, which USPAP STANDARDS apply to the assignment? The objects that are most significant to the assignment results should be the focus of the analysis. - CORRECT ANSWER In a personal property appraisal assignment that includes multiple objects as part of the same assignment: A reasonable and applicable time - CORRECT ANSWER When appraising personal property, the appraiser must analyze prior sales of the subject over what time period? trade, different comparable data - CORRECT ANSWER There are distinct levels of __________ in personal property, and each may have _______________. 3 - CORRECT ANSWER Under STANDARD 8, a personal property appraiser has _________ different report options. All oral and written reports covered in USPAP - CORRECT ANSWER Which reports require a signed certification? Appraisal Report or Restricted Use Appraisal Report - CORRECT ANSWER A written business appraisal report must be prepared in accordance with: Oral appraisal report - CORRECT ANSWER An appraiser is permitted under USPAP to provide an __________of a business enterprise. Contain a reference to the inspection of the subject property. - CORRECT ANSWER An appraiser's certification in business or intangible asset appraisal report does not: Clarify, explain, or elaborate on a Rule or Standards Rule - CORRECT ANSWER What is the purpose of Statements on Appraisal Standards in USPAP? The Statement is applicable to all appraisal disciplines. - CORRECT ANSWER What is indicated if a Statement on Appraisal Standards is labeled with "ALL"? The Statement is applicable to real property appraisal. - CORRECT ANSWER What is indicated if a Statement on Appraisal Standards is labeled with "RP"? The name and version of the software program. - CORRECT ANSWER 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? Be tested an checked for errors and reasonableness. - CORRECT ANSWER The results of DCF Analysis should: A prospective appraisal - CORRECT ANSWER Developing an opinion of value of a property as of a specific future date is: The context of the market conditions for the appraiser's opinion. - CORRECT ANSWER What does the effective date of an appraisal establish? Retrospective - CORRECT ANSWER What type of appraisal would be indicated by the phrase, "the market value of the subject property was $200,000? NOT - CORRECT ANSWER An appraiser who values an environmentally contaminated property is ________ required by the Competency Rule to be an expert in the scientific aspects of contamination. Should include explanation that provides context. - CORRECT ANSWER In an appraisal report, the use of terms that reflect a scale such as "good" or "average". Prohibited - CORRECT ANSWER The use of supported conclusions related to race, color, or religion in an appraisal may be ________________ by applicable law. beyond typical residential appraisal competency - CORRECT ANSWER The competency required to appraise subsidized housing extends: Not consistent with market value - CORRECT ANSWER A value opinion developed to reflect the most probable price under a forced sale condition is: Not an appraisal, an no workfile is required - CORRECT ANSWER An appraiser provides raw AVM output to a lender. The is: not interchangeable - CORRECT ANSWER All market value definitions are: Assignment conditions - CORRECT ANSWER Laws and regulations that apply to an appraisal for a federally regulated lending transaction would be considered: FALSE - CORRECT ANSWER Appraisals for federally regulated financial institutions often involve the use of the Jurisdictional Exception Rule. That the lender must engage the appraiser, and the appraiser cannot late "readdress" the report. - CORRECT ANSWER If a borrower attempts to engage an appraiser to complete an appraisal for a federally regulated lending transaction, the appraiser should disclose: Standard 1-1(a) - CORRECT ANSWER Appraiser must be aware, understand and correctly employ methods and techniques to produce credible results Standard 1-1(b) - CORRECT ANSWER Not commit an error of omission or commission that significantly effects the appraisal results. Standard 1-1(c) - CORRECT ANSWER Not be careless or negligent by making simple errors that effect results Standard 1-2(a) - CORRECT ANSWER Identify client and other intended users Standard 1-2(b) - CORRECT ANSWER Identify the intended use of the appraiser's opinion and conclusions (no bias) Standard 1-2(c) - CORRECT ANSWER Identify the type and definition of value, if market price determine if most probable in terms of cash, financial agreements, other terms or nonmarket financing. Standard 1-2(d) - CORRECT ANSWER Identify effective date of appraiser's opinions & conclusions Standard 1-2(e) - CORRECT ANSWER Identify characteristics of property that are relevant to definition of value and intended use. Standard 1-2(f) - CORRECT ANSWER Identify any extraordinary assumptions Standard 1-2(g) - CORRECT ANSWER Identify any hypothetical conditions Standard 1-2(h) - CORRECT ANSWER Determine scope of work necessary to produce credible assignment results Standard 1-3(a) - CORRECT ANSWER Identify and analyze any land use regulations and market area trends Standard 1-3(b) - CORRECT ANSWER Develop highest and best use opinion Standard 1-4(a) - CORRECT ANSWER When sales comparison approach is necessary appraiser is required to analyze comparable sales that are available. Standard 1-4(b) - CORRECT ANSWER Cost approach is necessary an appraiser must: develop opinion of site value, analyze comparable costs, make adjustments and estimate cost of improvements. Standard 1-4(c) - CORRECT ANSWER When Income approach is necessary appraiser must: analyze comparable to configure gross income potential, analyze comparable operating expenses, estimate rates of capitalization and base future projections, etc. on clear and appropriate data Standard 1-4(d) - CORRECT ANSWER When developing opinion of a leased fee estate or leasehold estate, appraiser must analyze terms and conditions of leases on effect of value. . Standard 1-4(e) - CORRECT ANSWER Analyze effect of value of assemblage of properties, can't value whole by adding properties together, must value as a whole. Standard 1-4(f) - CORRECT ANSWER Effect of public or private improvements on value Standard 1-4(g) - CORRECT ANSWER When personal property, intangible items, or trade fixtures are included in an appraisal, appraiser must examine their effect on value Standard 1-5(a) - CORRECT ANSWER Analyze all agreements of sale, options and listings of subject property current as of effective date. Standard 1-5(b) - CORRECT ANSWER Analyze all sales of subject property three years prior to effective date Standard 1-6(a) - CORRECT ANSWER Reconcile the quality and quantity of data available and analyzed Standard 1-6(b) - CORRECT ANSWER Reconcile the applicability and relevance of approaches and techniques used Standard 2-1(a) - CORRECT ANSWER clearly and accurately set forth the appraisal in a manner that is not misleading Standard 2-1(b) - CORRECT ANSWER Contain information to enable intended users to understand report Standard 2-1(c) - CORRECT ANSWER Clearly and accurately dispose all assumptions and conditions Standard 2-2(a) Appraisal Report (Summarize) - CORRECT ANSWER - State identity of client and intended users - State intended use - Summarize information sufficient enough to identify real estate involved in appraisal - State property interest appraised - State the type and definition of value and cite the source - State effective date of appraisal - Summarize scope of work - Summarize info analyzed including methods and techniques - State the use of property as on the date of value - Summarize opinion of highest and best use - State all assumptions and conditions - Include a signed certificate Standard 2-2(b) Restricted Appraisal Report (state) - CORRECT ANSWER - State info sufficient to identify real estate - State the type of value and cite the source - State scope of work - State info analyzed including methods and techniques - State opinion of highest and best use Standard 2-3 - CORRECT ANSWER Signed Certification Standard 2-4 - CORRECT ANSWER Oral appraisal report Standard 3-1(a) - CORRECT ANSWER Must be aware of and correctly employ methods and techniques for credible results. Standard 3-1(b) - CORRECT ANSWER Not commit a substantial error of omission or commission that effects appraisal review Standard 3-1(c) - CORRECT ANSWER Not render services in a careless or negligent manner Standard 3-2(a) - CORRECT ANSWER Identify client and other intended users Standard 3-2(b) - CORRECT ANSWER Identify the intended use of reviewers opinions & conclusions Standard 3-2(c) - CORRECT ANSWER Identify purpose of appraisal review: if appraiser is developing their own opinion of value or opinion of appraiser's work. Standard 3-2(d) - CORRECT ANSWER Identify work under review and characteristics relevant to work under review or intended use. Identify - (i): Any ownership interest in the property. (ii): Date of work under review and effective date. (iii): appraiser who work is under review. (iv): physical, legal and economic characteristics of subject property. Standard 3-2(e) - CORRECT ANSWER Identify any extraordinary assumptions Standard 3-2(f) - CORRECT ANSWER Identify any hypothetical conditions Standard 3-2(g) - CORRECT ANSWER Determine scope of work necessary for credible assignment review results Standard 3-3(a) - CORRECT ANSWER When necessary for credible results in review of opinions, etc. reviewer must: (i): determine whether analyses are appropriate. (ii): determine whether opinions and conclusions are credible. (iii): develop reasons for any disagreement. Standard 3-3(b) - CORRECT ANSWER Develop review whether report is clear and not misleading, develop any reasons for disagreement. Standard 3-3(c) - CORRECT ANSWER When assignment includes review developing his own opinion of value, he/she must: (i): Requirement of standard 1, 3, 6, 7, and 9 apply Standard 3-4(a) - CORRECT ANSWER clearly and accurately set forth appraisal review in a manner that isn't misleading. Standard 3-4(b) - CORRECT ANSWER Contain info for intended users of appraisal review to understand report. Standard 3-4(c) - CORRECT ANSWER Clearly and accurately disclose all assumptions and conditions Standard 3-5(a) - CORRECT ANSWER State client and intended users Standard 3-5(b) - CORRECT ANSWER State intended use of appraisal review Standard 3-5(c) - CORRECT ANSWER State purpose of appraisal review Standard 3-5(d) - CORRECT ANSWER State information sufficient to identify: (i): work under review. (ii): date of work under review. (iii): effective date of opinions or conclusions in work under review. (iv): appraiser who completed work under review Standard 3-5(e) - CORRECT ANSWER state date of appraisal review report Standard 3-5(f) - CORRECT ANSWER State extraordinary assumptions and hypothetical conditions and how their use may affect results Standard 3-5(g) - CORRECT ANSWER State scope of work in appraisal review Standard 3-5(h) - CORRECT ANSWER State reviewers opinions and conclusions about work under review, any reasons for disagreement. Standard 3-5(i) - CORRECT ANSWER When scope of work requires reviewer to develop their own opinion of value, reviewer must: State info that in report that was credible and summarize any addition information relied on for reasoning. State all assumptions and conditions Standard 3-5(j) - CORRECT ANSWER Signed certification Standard 3-6 - CORRECT ANSWER Certification Standard 3-7 - CORRECT ANSWER Oral Appraisal Report Standard 6-1(a) - CORRECT ANSWER be aware of, understand and correctly employ recognized methods and techniques necessary to produce credible results Standard 6-1(b) - CORRECT ANSWER Not commit a substantial error of omission or commission that effects mass appraisal Standard 6-1(c) - CORRECT ANSWER Not render mass appraisal in a careless or negligent manner Standard 6-2(a) - CORRECT ANSWER Identify client and other intended users Standard 6-2(b) - CORRECT ANSWER Identify intended use Standard 6-2(c) - CORRECT ANSWER ): Identify type and definition of value Standard 6-2(d) - CORRECT ANSWER Identify effective date Standard 6-2(e) - CORRECT ANSWER Identify the characteristics of properties that are relevant to type and definition of value and intended use, including: - (i): the group to which a property is identified according to similar market influence -(ii): the appropriate market area and time frame relative to property being valued -(iii): their location and physical, legal and economic characteristics Standard 6-2(f) - CORRECT ANSWER Identify characteristics of market that are relevant to purpose and intended use of the mass appraisal, including: -(i): location of market area -(ii): physical, legal and economic attributes -(iii): time frame of market activity -(iv): property interest reflected in the market Standard 6-2(g) - CORRECT ANSWER Appraising real or personal property -(i): identify appropriate market area and time frame relative to property -(ii): when subject is real property identify and consider any personal property, trade fixtures, or intangibles that are not real property but are included -(iii): when subject is personal property, identify and consider any real properties or intangibles that are not personal property but are included in the appraisal -(iv): identify known easements, restrictions, encumbrances, leases, reservations, covenants, contracts, declarations, special easements, ordinances, or other items of similar nature. -(v): identify and analyze whether an appraised fractional interest, physical segment or partial holding contributes pro rata to the value of the whole Standard 6-2(h) - CORRECT ANSWER Analyze relevant economic conditions at the time of valuation including market acceptability of the property and supply, demand, scarcity and rarity Standard 6-2(i) - CORRECT ANSWER Identify any extraordinary assumptions and any hypothetical conditions necessary in the assignment Standard 6-2(j) - CORRECT ANSWER Determine scope of work necessary to produce credible results Standard 6-3(a) - CORRECT ANSWER Similar to 1-3 with respect to Mass appraisals: In appraising real property, identify and analyze the effect on use and value of these factors: existing land use regulations, reasonably probable modifications of land regulations, economic supply and demand, physical adaptability of real estate, neighborhood trends and the highest and best use of the real estate. Standard 6-3(b) - CORRECT ANSWER Unique to Mass appraisals: In appraising real property, identify and analyze the effects on use and value of industry trends, value-in-use and trade level of personal property. When applicable, analyze current use and alternative uses to encompass what is profitable, legal, and physically possible, as relevant to the type and definition of value and intended use of the appraisal. Appraiser must analyze and define market consistent with that of personal property Standard 6-4(a) - CORRECT ANSWER Identify the appropriate procedures and market information required to perform the appraisal, including all physical, functional and external market factors Standard 6-4(b) - CORRECT ANSWER Employ recognized techniques for specifying property valuation models. Standard 6-4(c) - CORRECT ANSWER Employ recognized techniques for calibrating mass appraisal models Standard 6-5(a) - CORRECT ANSWER Collect, verify and analyze such data as are necessary and appropriate to develop: -(i): cost of new improvements -(ii): accrued depreciation -(iii): value of land & property by sales of comparable properties -(iv): value by capitalization of income or potential earnings, Standard 6-5(b) - CORRECT ANSWER base estimates of capitalization rates and projections of future rental rates and/or potential earnings, capacity, expenses, interest rates, and vacancy rates on reasonable and appropriate evidence Standard 6-5(c) - CORRECT ANSWER Identify and as applicable analyze terms and conditions of any available leases Standard 6-5(d) - CORRECT ANSWER identify the need for and extent of any physical inspection Standard 6-6(a) - CORRECT ANSWER value improved parcels by recognized methods and techniques based on cost approach, sales comparison approach and income approach Standard 6-6(b) - CORRECT ANSWER value sites by recognized methods or techniques; include sales comparison approach, allocation method, extraction method, capitalization of ground rent and land residual technique Standard 6-6(c) - CORRECT ANSWER When developing value of leased fee estate or leasehold estate, analyze effect on value if any on terms of conditions of lease Standard 6-6(d) - CORRECT ANSWER analyze effect of value if any due to assemblage of parcels, divided interest or component parts of a property Standard 6-6(e) - CORRECT ANSWER when analyzing anticipated public or private improvements, located on or off site, analyze effect on value if any, of such anticipated improvements to the extent they are reflected in market actions Standard 6-7(a) - CORRECT ANSWER reconcile the quality and quantity of the data available and analyzed for relevance of approaches methods and techniques used Standard 6-7(b) - CORRECT ANSWER employ recognized mass appraisal testing procedures and techniques to ensure that standards of accuracy are maintained Standard 6-8(a) - CORRECT ANSWER clearly and accurately set forth info so it's not misleading Standard 6-8(b) - CORRECT ANSWER contain enough info so intended users understand report Standard 6-8(c) - CORRECT ANSWER clearly and accurately disclose all assumptions and conditions Standard 6-8(d) - CORRECT ANSWER state identity of client and intended users Standard 6-8(e) - CORRECT ANSWER state intended use Standard 6-8(f) - CORRECT ANSWER disclose any assumptions or limiting conditions that result in deviation from recognized methods Standard 6-8(g) - CORRECT ANSWER set forth effective date of appraisal and date of report Standard 6-8(h) - CORRECT ANSWER state the type and definition of value and cite source of definition Standard 6-8(i) - CORRECT ANSWER identify properties appraised including property rights Standard 6-8(j) - CORRECT ANSWER describe scope of work used in assignment, exclusion of three approaches to value which must be explained Standard 6-8(k) - CORRECT ANSWER describe and justify model specifications considered, data requirements, and models chosen Standard 6-8(l) - CORRECT ANSWER describe procedure for collecting, validating and reporting data Standard 6-8(m) - CORRECT ANSWER describe calibration methods considered and chosen Standard 6-8(n) - CORRECT ANSWER discuss how highest and best use and appropriate market or market level Standard 6-8(o) - CORRECT ANSWER identify the appraisal performance tests used and set forth performance measures attained Standard 6-8(p) - CORRECT ANSWER describe reconciliation performed Standard 6-8(q) - CORRECT ANSWER include signed certification Standard 7-1(a) - CORRECT ANSWER understand and correctly employ methods and techniques for credible results Standard 7-1(b) - CORRECT ANSWER not commit a substantial error of omission or commission that affects results Standard 7-1(c) - CORRECT ANSWER not render services in a careless or negligent manner Standard 7-2(a) - CORRECT ANSWER identify client and intended users Standard 7-2(b) - CORRECT ANSWER identify intended users Standard 7-2(c) - CORRECT ANSWER identify type and definition of value in the assignment Standard 7-2(d) - CORRECT ANSWER identify effective date of appraisal Standard 7-2(e) - CORRECT ANSWER identify characteristics of property that are relevant to type and definition of value and intended use, including: -(i): establish identity of item -(ii): identify relative quality of item -(iii): all other physical and economic attributes with material effect on value -(iv): the ownership interest to be valued -(v): any known restrictions, encumbrances, leases, covenants, contracts, declarations, etc. -(vi): any real property or intangible items that are not personal property but are included Standard 7-2(f) - CORRECT ANSWER identify extraordinary assumptions Standard 7-2(g) - CORRECT ANSWER identify hypothetical conditions Standard 7-2(h) - CORRECT ANSWER determine scope of work necessary for credible assignment results Standard 7-3(a) - CORRECT ANSWER identify properties current use and alternative uses as relevant to the type and definition of value and intended use Standard 7-3(b) - CORRECT ANSWER define and analysis the appropriate market consistent with type and definition of value Standard 7-3(c) - CORRECT ANSWER analyze relevant economic conditions that exist on the effective date of valuation Standard 7-4(e) (identical to 1-4 except for) - CORRECT ANSWER significance of value of individual assets and which have higher significance Standard 7-5(a) - CORRECT ANSWER analyze all agreements of sale Standard 7-5(b) - CORRECT ANSWER analyze all prior sales of subject property that occurred within a reasonable time period Standard 7-6 - CORRECT ANSWER Same as 1-6 Standard 8 - CORRECT ANSWER Identical to standard 2, requires the report and content to not be misleading Standard 9 - CORRECT ANSWER Development of a business or intangible asset appraisal Standard 9-1 - CORRECT ANSWER Mirrors standard 1-1 Standard 9-2 - CORRECT ANSWER Mirrors standard 1-2 Standard 10-1(a) - CORRECT ANSWER clearly and accurately set forth an appraisal for interest in a business enterprise or intangible asset Standard 10-1(b) - CORRECT ANSWER contain sufficient information to enable the intended users to understand Standard 10-1(c) - CORRECT ANSWER clearly and accurately disclose all assumptions and conditions in the assignment Standard 10-2 - CORRECT ANSWER doesn't apply because highest and best use isn't used Standard 10-3 - CORRECT ANSWER same as 2-3 except can't inspect intangible assets Standard 10-4 - CORRECT ANSWER an oral appriasial report for an interest in a business enterprise or intangible asset must address the substantive matters set forth in 10-2(a) AO-1 - CORRECT ANSWER Sales history requirements and how they apply to real property AO-2 - CORRECT ANSWER Inspection of the subject real and personal property - USPPAP doesn't require an inspection it is decided in scope of work AO-3 - CORRECT ANSWER Update of a prior appraisal of a real, personal or intangible property - Start from scratch, NEW appraisal AO-4 - CORRECT ANSWER Addresses application of standard 1-5(b), applying to real property - Research all sales of subject property within three years including foreclosure AO-7 - CORRECT ANSWER Market time for real and personal property (after effective date) AO-9 - CORRECT ANSWER Real property that is or suspected to be contaminated - Valuation as if impaired or unimpaired, property characteristics AO-11 - CORRECT ANSWER Content requirements and reporting options for written appraisal reports of real, personal and intangible properties. (state or summarize) AO-12 - CORRECT ANSWER Discuss the use of appraisal report options 2-2, 8-2, and 10-2 on real, personal and intangible property - Decide which reporting option to use AO-13 - CORRECT ANSWER Performing evaluations of real property collateral to conform with USPAP involving real property - Deals with distinctions between "appraisals" versus "evaluations" AO-14 - CORRECT ANSWER Addresses many issues for appraising subsidized housing on only real property AO-16 - CORRECT ANSWER Addresses fair housing laws and appraisal report content on only real property and expands on fair housing issues through guidance and several illustrations AO-17 - CORRECT ANSWER Appraisals of real property that include current or prospective value opinions for proposed improvements AO-18 - CORRECT ANSWER Addresses the use of an Automated Valuation Model (AVM) that can be applied to real, personal and intangible property AO-19 - CORRECT ANSWER Discussion of unacceptable assignment conditions and was covered in Ethics Rule only applies to real property AO-20 - CORRECT ANSWER Appraiser obligation in an appraisal review assignment that includes the reviewers own opinion of vale on real property, personal property or intangible property AO-21 - CORRECT ANSWER USPAP compliance on real, personal or intangible property AO-22 - CORRECT ANSWER Applies to the scope of work in market value assignments of real property AO-23 - CORRECT ANSWER Identifying the relevant characteristics of the subject property of a real property appraisal assignment AO-24 - CORRECT ANSWER Normal course of business for real and personal property AO-25 - CORRECT ANSWER Clarification of the client in a federally related transaction, explains the issue of the appraiser's engagement in such an assignment on real property AO-26 - CORRECT ANSWER Readdressing or transferring a report to another party, covered with the scope of work rule and applies to real, personal and intangible properties AO-27 - CORRECT ANSWER Applies to real, personal and intangible properties when an appraiser is asked to perform an appraisal for a new client of a property he previously appraised AO-28 - CORRECT ANSWER Scope of work decision, performance and disclosure on real, personal and intangible properties AO-29 - CORRECT ANSWER Guidelines for when a scope of work is acceptable on real, personal and intangible property AO-30 - CORRECT ANSWER Clients' obligations in an assignment for use by a federally regulated financial institution AO-31 - CORRECT ANSWER Assignments involving more than one appraiser on real, personal and intangible property AO-32 - CORRECT ANSWER Specific to ad valorem (latin for according to value) property tax appraisal and mass appraisal assignments on real, personal and intangible properties AO-33 - CORRECT ANSWER Applies to real property and addresses discounted cash flow (DCF) analysis AO-34 - CORRECT ANSWER Details appraiser responsibility when a retrospective or prospective value opinion is being expressed in an assignment real and personal property AO-35 - CORRECT ANSWER Addresses a reasonable exposure time in real and personal property market value opinions AO-36 - CORRECT ANSWER Addresses identification and disclosure of client, intended use and intended users, applies to all property types USPAP Provides... - CORRECT ANSWER 1. A common basis for comparison 2. A reference source for all users of the document 3. A basis for uniform enforcement for state regulatory agencies 4. A reason for clients, other intended users, and the public to place their trust in the services performed by professional appraisers USPAP Stands for - CORRECT ANSWER Uniform Standards of Professional Appraisal Practice Year Appraisal Foundation formed - CORRECT ANSWER 1987 3 Boards of Appraisal Foundation - CORRECT ANSWER - Board of Trustees (BOT) - The Appraiser Qualifications Board (AQB) - The Appraisal Standards Board (ASB) - Appraisal Practices Board (APB) How does USPAP achieve legal authority - CORRECT ANSWER It achieves legal authority by adoption, citation, or implementation by government agencies through regulation or administrative actions, or by private enterprise in the form of contract requirements. Functions of the Board of Trustees (BOT) - CORRECT ANSWER -Appoints Members to the APB, AQB, and ASB -Secures funding for TAF operations -Monitors performance and oversight of TAF and its three boards (APB, AQB, and ASB) and three Advisory councils Functions of the Appraisal Qualifications Board (AQB) - CORRECT ANSWER -Establishes education requirements -Defines issues and promotes qualification criteria -Anything that has to do with education of USPAP Functions of The Appraisal Standards Board (ASB) - CORRECT ANSWER -Responsible for the subject, content, and substance of USPAP and other communications related to appraisal standards -Issues responses such as FAQs and Q&As -Can make Revisions to USPAP Functions of The Appraisal Practices board (APB) - CORRECT ANSWER -Responsible for identifying and issuing voluntary guidance in the form of valuation advisories, on recognized valuation methods and techniques, which may apply to all disciplines within the appraisal profession Functions of The Appraisal Subcommittee (ASC) - CORRECT ANSWER -Formed in 1989, as a result of FIRREA -This is an entity of the federal government, which has a role over state boards and real appraisers Responsibilities of the Appraisal Subcommittee (ASC) - CORRECT ANSWER -Has authority to monitor the Appraisal Foundation - Oversee the activities of state licensure and certification agencies Who establishes the minimum qualifications criteria for appraisers and standards for practice? - CORRECT ANSWER The AQB and the ASB 10 USPAP Standards (4 and 5 are gone) - CORRECT ANSWER 1. Real Property Appraisal, Development 2. Real Property Appraisal, Reporting 3. Appraisal Review, Development and Reporting 6. Mass Appraisal, Development and Reporting 7. Personal Property Appraisal, Development 8. Personal Property Appraisal, Reporting 9. Business Appraisal, Development 10. Business Appraisal, Reporting Advisory Options - CORRECT ANSWER 36 have been published 31 Remain Active Steps in Appraisal Process - CORRECT ANSWER 1. Definition of the problem 2. Determination of the appropriate scope of work 3. Data collection and Analysis 4. Application of the approaches to value 5. Reconciliation of value indications and final opinion of value 6. Report of defined value opinions Two types of activity defined in USPAP - CORRECT ANSWER 1. Development 2. Reporting Market Value - CORRECT ANSWER USPAP does not define a specific definitions, but rather the components of the term market value There are a number of definitions of market value, each is unique. USPAP does not endorse any specific definition. Advocacy - CORRECT ANSWER 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 Impartiality - CORRECT ANSWER Conveys a mental state that does not favor one side over another at the outset of an investigation Bias - CORRECT ANSWER A preference or inclination that precludes an appraiser's impartiality, independence, or objectivity in an assignment Assumption - CORRECT ANSWER That which is taken to be true Extraordinary Assumption - CORRECT ANSWER An assumption, directly related to a specific assignment, as of the effective date of the assignment results, which, if found to be false, could alter the appraiser's opinions or conclusions. Extraordinary assumptions presume as fact otherwise uncertain information Hypothetical Condition - CORRECT ANSWER A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. Exposure Time - CORRECT ANSWER 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. Exposure time is a retrospective opinion based on an analysis of past events assuming a competitive and open market Cost - CORRECT ANSWER The amount required to create, produce, or obtain a property Price - CORRECT ANSWER the amount asked, offered, or paid for a property Value - CORRECT ANSWER The monetary relationship between properties and those who buy, sell, or use those properties. Value is ALWAYS an opinion, never a fact Appraiser - CORRECT ANSWER One who is expected to perform valuation services competently and in a manner that is independent, impartial, and objective. Expected Performance of Components of an appraiser - CORRECT ANSWER The appraiser is expected to perform COMPETENTLY while maintaining his or her INDEPENDENCE, IMPARTIALITY, and OBJECTIVITY Client - CORRECT ANSWER The party or parties who engage, by employment or contract, an appraiser in a specific assignment. The client may be identified as an individual, group, or entity and may engage and communicate with the appraiser directly or through an agent Assignment - CORRECT ANSWER 1) An agreement between an appraiser and a client to provide a valuation service 2) The valuation service that is provided as a consequence of such an agreement Assignment Results - CORRECT ANSWER An appraiser's opinions or conclusions developed specific to an assignment. Physical characteristics are NOT assignment results Confidential Information - CORRECT ANSWER Information that is either: Identified by the client as confidential when providing it to an appraiser and that is not available from any other source, or classified as confidential or private by applicable law or regulation Intended Use - CORRECT ANSWER The use or uses of an appraiser's reported appraisal, or appraisal review assignment opinions and conclusions, as identified by the appraiser based on communication with the client at the time of the assignment. Intended User - CORRECT ANSWER The client and any other party as identified by name or type, as users of the appraisal or appraisal review report by the appraiser on the basis of communication with the client at the time of the assignment. The client is ALWAYS the intended user Report - CORRECT ANSWER Any communication, written or oral, of an appraisal or appraisal review that is transmitted to the client upon completion of an assignment. Most reports are written and most clients mandate written reports. Oral report requirements are included to cover court testimony and other oral communications of an appraisal or appraisal review Signature - CORRECT ANSWER Personalized evidence indicating, authentication of the work performed by the appraiser and the acceptance of the responsibility for content, analyses, and the conclusions in the report Workfile - CORRECT ANSWER Documentation necessary to support an appraiser's analysis, opinions, and conclusions. Valuation Services - CORRECT ANSWER Services pertaining to aspects of property value Appraisal Practice - CORRECT ANSWER Valuation services performed by an individual acting as an appraiser, including but not limited to appraisal and appraisal review. Appraisal Practice is a subset of... - CORRECT ANSWER Valuation Services Appraisal - CORRECT ANSWER The act or process of developing an opinion of value, an opinion of value Appraisal Review - CORRECT ANSWER The act or process of developing and communication an opinion about the quality of another appraiser's work that was performed as part of an appraisal or appraisal review assignment. Scope of work - CORRECT ANSWER The type and extent of research and analyses in an appraisal or appraisal review assignment Requirements for an appraisal or appraisal review - CORRECT ANSWER - Identify the problem to be solved - Determine and perform the scope of work necessary to develop credible assignment results, for the intended use - Disclose the scope of work performed in the report What does the ethics rule establish? - CORRECT ANSWER Establishes fundamental obligations of an appraiser as part of the profession Ethics Rule - CORRECT ANSWER An appraiser must promote and preserve the public trust inherent in professional appraisal practice by observing the highest standards of professional ethics. Requirements of the ethics rule - CORRECT ANSWER An Appraiser Must: -Not misrepresent his or her role when providing valuation services that are outside of appraisal practice -Certify compliance with USPAP -Communicate in a manner that is not misleading Who does the ethics rule apply to? - CORRECT ANSWER Individual Appraisers Sections of Ethics Rule - CORRECT ANSWER -Conduct -Management -Confidentiality Activities Covered by the Ethics Rule - CORRECT ANSWER -General Conduct -Development -Communication Conduct Section of Ethics Rule - CORRECT ANSWER -Appraiser must perform ethically and competently -Appraiser must perform in accordance with USPAP -Appraiser must not engage in criminal conduct -Appraiser must NOT willfully or knowingly violate the requirements of the record keeping rule Conduct Section of Ethics Rule States - CORRECT ANSWER If known prior to accepting an assignment, an/or if discovered at any time during the assignment, an appraiser must disclose to the client, and in each subsequent report certification Number of years required for disclosure - CORRECT ANSWER 3 years Payment of Fees in Ethics Rule - CORRECT ANSWER An appraiser must disclose that he or she paid a fee or commission, or gave a thing of value in connection with the procurement of an assignment Confidentiality Section of ethics rule - CORRECT ANSWER States that an appraiser must protect the confidential nature of the appraiser-client relationship Who can an appraiser disclose confidential information to? - CORRECT ANSWER -The client -Parties specifically authorized by the client -State appraiser regulatory agencies -Third parties as may be authorized by due process of law A duly authorized professional pee review committee except when such disclosures to a committee would violate applicable law or regulation What is not confidential information? - CORRECT ANSWER Physical characteristics are not assignment results and can be shared with other appraisers Record Keeping Rule - CORRECT ANSWER Establishes requirements for an appraiser's workfile Workfile Requirements - CORRECT ANSWER -An appraiser must prepare a workfile for each appraisal or appraisal review assignment -A workfile must be in existence prior to the issuance of any report. It is not permissible to issue a report, and then retroactively create a workfile -A written summary of an oral report must be added to the workfile within a reasonable time after issuance of the oral report Retention requirement for Workfile - CORRECT ANSWER An appraiser must retain the workfile for a period of at least 5 years after preparation or at least two years after final disposition of any judical proceeding in which the appraiser provided testimony related to the assignment, whichever period expires last. These are Minimum Requirements Violation of ethics rule - CORRECT ANSWER An appraiser who willfully or knowingly fails to comply with the obligations of the record keeping rule is in violation of the ethics rule When should a workfile be created? - CORRECT ANSWER A workfile must be in existence prior to the issuance of a written or oral report. A written summary of an oral report must be added to the workfile within a reasonable time after the issuance of the oral report. What does the competency rule apply to? - CORRECT ANSWER The competency rule applies to all of appraisal practice, including appraisal and appraisal review, and any other services provided by an individual acting as an appraiser Competency Rule: Definition - CORRECT ANSWER An appraiser must: (1) be competent to perform the assignment, (2) acquire the necessary competency to perform the assignment, or (3) decline or withdraw from the assignment. In all cases, the appraiser must perform competently when completing the assignment Sections of the competency rule - CORRECT ANSWER -Being Competent -Acquiring Competency -Lack of Competency Being Competent section of Competency Rule - CORRECT ANSWER An appraiser must determine, prior to accepting an assignment, that he or she can perform the assignment competently Requirements of competency - CORRECT ANSWER 1. The ability to property identify the problem to be addressed 2. The knowledge and experience to complete the assignment competently 3. Recognition of, and compliance with, laws and regulations that apply to the appraiser or to the assignment Acquiring Competency section of Competency Rule - CORRECT ANSWER If an appraiser determines that he or she is not competent prior to accepting an assignment they must 1. Disclose the lack of knowledge and/or experience to the client before accepting the assignment 2. Take all steps necessary or appropriate to complete the assignment competently 3. Describe, in the report, the lack of knowledge and experience and the steps taken the complete the assignment competently What requirements are included in Standard 1? - CORRECT ANSWER Requirements that are specific to the development of real property appraisal assignments are found in Standard 1 General statement in beginning of standard 1 - CORRECT ANSWER In developing a real property appraisal, an appraiser must identify the problem to be solved, determine the scope of work necessary to solve the problem, and correctly complete research and analyses necessary to produce a credible appraisal How many rules are there in Standard 1? - CORRECT ANSWER Six Standard rule 1 - CORRECT ANSWER 1. Appraiser must be aware of, understand, and correctly employ those recognized methods and techniques that are necessary to produce a credible appraisal 2. Not commit a substantial error of omission or commission that significantly affects an appraisal 3. Not render appraisal services in a careless or negligent manner, such as by making a series or errors, that although individually might not significantly affect the results of an appraisal, in the aggregate affects the credibility of those results Standard Rule 1.2 (a) - CORRECT ANSWER An appraiser must identify the client and other intended users Standard Rule 1.2 (b) - CORRECT ANSWER An appraiser must identify the intended use of the appraiser's opinions and conclusions Standard Rule 1.2 (c) - CORRECT ANSWER An appraiser must identify the type and definition of value, and, if the value opinion to be developed is market value, ascertain whether the value or to be the most probable price in specific terms. Exposure Time - CORRECT ANSWER Estimated length of time the property interest being appraiser would have been offered on the market prior to a hypothetical consummation of a sale at market value on the effective date of the appraisal When does exposure time end? - CORRECT ANSWER Exposure time ends on the effective date of the appraisal When does marketing time begin? - CORRECT ANSWER Marketing time begins on the effective date of the appraisal and extends into the future Standard Rule 1-2 (d) - CORRECT ANSWER The appraiser must identify the effective date of the appraiser's opinions and conclusions Standard Rule 1-2 (e) - CORRECT ANSWER An appraiser must identify the characteristics of the property that are relevant to the type and definition of value and intended use of appraisal Purpose of inspection - CORRECT ANSWER To gather information about the characteristics of the property that are relevant to its value Minimum level of inspection - CORRECT ANSWER USPAP does not require an inspection Standard Rule 1-2 (f) - CORRECT ANSWER An Appraiser must identify any extraordinary assumptions necessary in the assignment When can you use an extraordinary assumption? - CORRECT ANSWER Can be used only if... -It is required to properly develop credible opinions and conclusions -The appraiser has reasonable basis for the extraordinary assumption -Use of the extraordinary assumption results in a credible analysis -The appraiser complies with the disclosure requirements set forth in USPAP for extraordinary assumptions Standard Rule 1-2 (g) - CORRECT ANSWER An appraiser must identify any hypothetical conditions necessary to the assignment Standard Rule 1-2 (h) - CORRECT ANSWER An appraiser must determine the scope of work necessary to produce credible assignment results in accordance with the scope of work rule Standard Rule 1-3 - CORRECT ANSWER When necessary for credible assignment results in developing a market value opinion, an appraiser must a) Identify and analyze the effect on use and value of existing land use regulations, reasonably probably modifications of such land use regulations, economic supply and demand, the physical adaptability of the real estate, and market area trends and b) Develop an opinion of the highest and best use of real estate Standard rule 1-4 - CORRECT ANSWER In developing a real property appraisal, an appraiser must collect, verify, and analyze all information necessary for credible assignment results Standard Rule 1-4 (a) - CORRECT ANSWER When a sales comparison approach is necessary for credible assignment results, an appraiser must analyze such comparable sales data as are available to indicate a value conclusion Standard Rule 1-4 (b) - CORRECT ANSWER When a cost approach is necessary for credible assignment results the appraiser must: -Develop an opinion of site value by an appropriate appraisal method or technique -Analyze such comparable cost data as are available to estimate the cost new of the improvements (if any) -Analyze such comparable data as are available to estimate the difference between the cost new and the present worth of the improvements Standard Rule 1-4 (c) - CORRECT ANSWER (i) analyze such comparable rental data as are available and/or the potential earnings capacity of the property to estimate the gross income potential of the property; (ii) analyze such comparable operating expense data as are available to estimate the operating expenses of the property; (iii) analyze such comparable data as are available to estimate rates of capitalization and/or rates of discount; and (iv) base projections of future rent and/or income potential and expenses on reasonably clear and appropriate evidence Standard Rule 1-4 (D) - CORRECT ANSWER When developing an opinion of the value of a leased fee estate or a leasehold estate, an appraiser must analyze the effect on value, if any, of the terms and conditions of the lease(s). Standard Rule 1-4 (e) - CORRECT ANSWER When analyzing the assemblage of the various estates or component parts of a property, an appraiser must analyze the effect on value, if any, of the assemblage. An appraiser must refrain from valuing the whole solely by adding together the individual values of the various estates or component parts. Standard Rule 1-4 (f) - CORRECT ANSWER When analyzing anticipated public or private improvements, located on or off the site, an appraiser must analyze the effect on value, if any, of such anticipated improvements to the extent they are reflected in market actions. Standard Rule 1-4 (g) - CORRECT ANSWER When personal property, trade fixtures, or intangible items are included in the appraisal, the appraiser must analyze the effect on value of such non-real property items. Standard Rule 1-5 - CORRECT ANSWER When the opinion of value to be developed is market value, an appraiser must, if such information is available to the appraiser in the normal course of business: (a) analyze all agreements of sale, options, and listings of the subject property current as of the effective date of the appraisal; and (b) analyze all sales of the subject property that occurred within the three (3) years prior to the effective date of the appraisal. Standard 2 States... - CORRECT ANSWER In reporting the results of a real property appraisal, an appraiser must communicate each analysis, opinion, and conclusion in a manner that is not misleading. Report - CORRECT ANSWER Any communication, written or oral, of an appraisal or appraisal review that is transmitted to the client upon completion of an assignment. What does standard 2 do? - CORRECT ANSWER STANDARD 2 sets forth minimum content requirements for written and oral real property appraisal reports. Standard Rule Reporting requirements - CORRECT ANSWER Each written or oral real property appraisal report must: (a) clearly and accurately set forth the appraisal in a manner that will not be misleading; (b) contain sufficient information to enable the intended users of the appraisal to understand the report properly; and (c) clearly and accurately disclose all assumptions, extraordinary assumptions, hypothetical conditions, and limiting conditions used in the assignment Sufficient information Requirement - CORRECT ANSWER The appraiser is not required to include sufficient information so that anyone other than intended users can understand the report. Standard Rule 2-2 - CORRECT ANSWER Each written real property appraisal report must be prepared under one of the following options and prominently state which option is used: Appraisal Report or Restricted Appraisal Report. Two real property reporting options defined in USPAP - CORRECT ANSWER -Appraisal Report -Restricted Appraisal Report What is the difference between an appraisal report and a restricted appraisal report? - CORRECT ANSWER The level of detail Who is responsible for determining which reporting option to use? - CORRECT ANSWER The appraiser is responsible for the decision regarding which reporting option to use The content of an Appraisal Report must, at a minimum: - CORRECT ANSWER state the identity of the client and any intended users, by name or type When can a restricted report be used? - CORRECT ANSWER A Restricted Appraisal Report is for client use only, and may only be used when the client is the only intended user of the assignment results. In an Appraisal Report, the appraiser must, at a minimum: - CORRECT ANSWER state the intended use of the appraisal. The content of an Appraisal Report must, at a minimum: - CORRECT ANSWER -summarize information sufficient to identify the real estate involved in the appraisal, including the physical, legal, and economic property characteristics relevant to the assignment. -state the real property interest appraised. -state the type and definition of value and cite the source of the definition. -state the effective date of the appraisal and the date of the report. -summarize the scope of work used to develop the appraisal. -summarize the information analyzed, the appraisal methods and techniques employed, and the reasoning that supports the analyses, opinions, and conclusions; exclusion of the sales comparison approach, cost approach, or income approach must be explained. -state the use of the real estate existing as of the date of value and the use of the real estate reflected in the appraisal; -when an opinion of highest and best use was developed by the appraiser, summarize the support and rationale for that opinion; The report content of an Appraisal Report must, at a minimum: - CORRECT ANSWER Clearly and conspicuously: state all extraordinary assumptions and hypothetical conditions; and state that their use might have affected the assignment results -Include a signed certification in accordance with Standards Rule 2-3. When is a signed certification required? - CORRECT ANSWER A signed certification is required in all written appraisal reports, regardless of the report option utilized. What is the purpose of a signed certification? - CORRECT ANSWER A signed certification serves as an appraiser's recognition of his or her ethical obligations. Standard Rule 2-4 - CORRECT ANSWER To the extent that it is both possible and appropriate, an oral real property appraisal report must address the substantive matters set forth in Standards Rule 2-2(a). Record Keeping rule (Oral) - CORRECT ANSWER The workfile must include... summaries of any oral reports or testimony, or a transcript of testimony, including the appraiser's signed and dated certification... A workfile must be in existence prior to the issuance of any report. A written summary of an oral report must be added to the workfile within a reasonable time after the issuance of the oral report. Standard 3 States... - CORRECT ANSWER -Develop a credible opinion as to the quality of another appraiser's work performed as part of an appraisal or appraisal review assignment -Report the results of an appraisal review assignment in a manner that is not misleading Appraisal Review - CORRECT ANSWER The act or process of developing and communicating an opinion about the quality of another appraiser's work that was performed as part of an appraisal or appraisal review assignment. What does Standard 3 cover? - CORRECT ANSWER STANDARD 3 contains both the minimum development and reporting requirements for appraisal review assignments. Does a reviewer always have to develop an opinion of value? - CORRECT ANSWER USPAP does not require a reviewer to develop an opinion of value in every appraisal review assignment. What is a reviewer required to do? - CORRECT ANSWER Rather, a reviewer is required to identify - for each assignment - whether it is necessary to develop this opinion in order to produce credible assignment results for the intended use. Standard 6 - CORRECT ANSWER STANDARD 6 applies to all mass appraisals of real or personal property regardless of the purpose of such appraisals. The basic requirements for developing and reporting a mass appraisal are presented in STANDARD 6. Definition of Mass Appraisal - CORRECT ANSWER the process of valuing a universe of properties as of a given date using standard methodology, employing common data, and allowing for statistical testing. Does jurisdictional Exception apply to mass appraisal? - CORRECT ANSWER The JURISDICTIONAL EXCEPTION RULE may apply to several sections of STANDARD 6 because ad valorem tax administration is subject to various laws (includes state, county, and municipal). How many standard rules are there in standard 6? - CORRECT ANSWER There are nine Standards Rules in STANDARD 6. Standards Rules 6-1 through 6-7 apply to the development of the mass appraisal. Standards Rule 6-8 addresses the written report of a mass appraisal assignment. Standards Rule 6-9 applies to the certification which is required to be part of every report of a mass appraisal assignment. Business Enterprise - CORRECT ANSWER an entity pursuing an economic activity. Business Equity - CORRECT ANSWER the interests, benefits, and rights inherent in the ownership of a business enterprise or a part thereof in any form (including, but not necessarily limited to, capital stock, partnership interests, cooperatives, sole proprietorships, options, and warrants). Intangible Property (Intangible Assets) - CORRECT ANSWER nonphysical assets, including but not limited to franchises, trademarks, patents, copyrights, goodwill, equities, securities, and contracts as distinguished from physical assets such as facilities and equipment. How many numbered statements are active? - CORRECT ANSWER There are currently no active Statements on Appraisal Standards. What are advisory options? - CORRECT ANSWER Advisory Opinions are included in the USPAP bound publication, but unlike Statements, are not part of USPAP and may be adopted by the ASB without prior public exposure or comment. Advisory Opinions do not establish new standards or interpret existing standards. Advisory Opinions are issued by the Appraisal Standards Board (ASB) for the purpose of illustrating the applicability of USPAP in specific situations and offering advice for the resolution of appraisal issues and problems. Thirty-six Advisory Opinions have been issued; five of them (AO-5, AO-6, AO-8, AO-10, and AO-15) have been retired. How many active advisory options are there? - CORRECT ANSWER There are currently 31 active Advisory Opinions. How are advisory options labeled? - CORRECT ANSWER The disciplines are real property (RP), personal property (PP), and intangible property including business interests (IP). If the Advisory Opinion applies to all disciplines, (All) is used. Appraisal review is the process of ______ and _____ an opinion about the quality of another appraiser's work performed as part of an appraisal or appraisal review assignment. a) Supporting, defending b) Developing, communicating c) Expressing, Critiquing d) Reporting, Supporting - CORRECT ANSWER b) Developing, communicating 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. a) A broker price opinion b) An appraisal review only c) Either an appraisal or an appraisal review d) an appraisal only - CORRECT ANSWER c) Either an appraisal or an appraisal review A reviewer is required to identify the appraiser who completed the work, under review, unless: a) The identify has been withheld by the client b) The review is being performed for litigation purposes c) The reviewer wants to protect the appraiser's identity to shield him or her from liability d) The reviewer has a bias against the appraiser who performed the work under review - CORRECT ANSWER a) The identify has been withheld by the client Under certain circumstances, a reviewer may use information that was not available to the original appraiser to impugn the work under review. a) True b) False - CORRECT ANSWER b) False If a reviewer provides an oral report of an appraisal Review: a) A signed certification must be inserted into the workfile b) The reviewer is precluded from developing his or her own opinion of value c) It is not necessary that the appraiser sign a certification d) The reviewer has violated USPAP - CORRECT ANSWER a) 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. a) Did b) did not - CORRECT ANSWER b) Did not 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: a) The appraiser would violate USPAP by accepting the assignment b) The appraiser must prepare a written report c) this is a two-stage assignment d) This is an appraisal consulting assignment - CORRECT ANSWER c) this is a two-stage assignment A major difference between the standards for real property appraisal and appraisal review is that: a) There are no differences; the standards are interchangeable b) The standards for appraisal appears in USPAP, while the standards for appraisal review are included within the Advisory Opinions c) The appraisal review standard applies only to licensed and certified appraisers d) The real property appraisal standards are "Paired", but there is only one standard that addresses appraisal review - CORRECT ANSWER d) The real property appraisal standards are "Paired", but there is only one standard that addresses appraisal review Does USPAP permit a reviewer to use an extraordinary assumption in a review assignment? a) Yes b) USPAP does not address the issue c) No - CORRECT ANSWER a) Yes A review appraiser may use additional information that was not available to the original appraiser as long as the information: a) discredits the data in the appraisal report under review b) is not used in a review that includes the reviewer's own opinion of value c) is not used as the basis to discredit the original appraiser's value opinion d) Supports the data in the appraisal report under review - CORRECT ANSWER c) is not used as the basis to discredit the original appraiser's value opinion Which statement is TRUE regarding USPAP and the appraisal review process for real property? a) In reviewing an appraisal, the reviewer is prohibited from developing or expressing an opinion of value b) A reviewer who develops his or her own opinion of value must start from scratch and gather all of the relevant information himself or herself c) If the reviewer develops his or her own opinion of value, it must be developed under the requirements of STANDARD 1. d) A reviewer is required to develop his or her own opinion of value if the reviewer feels the original value is not credible. - CORRECT ANSWER c) If the reviewer develops his or her own opinion of value, it must be developed under the requirements of STANDARD 1. Consistent with the reviewer's scope of work, a reviewer must develop an opinion regarding: a) The professional qualifications of the appraiser who completed the work under review b) Both of these c) The completeness, accuracy, and reasonableness of the work under review - CORRECT ANSWER c) The completeness, accuracy, and reasonableness of the work under review A reviewer has been requested to also develop her own value opinion in a review assignment. Which statement is TRUE regarding this situation? a) The reviewer must use the same comparable sales as the original appraiser b) The reviewer must use the same scope of work as the original appraiser c) The reviewer may use a different scope of work than the original appraiser d) The reviewer is prohibited from developing her own value opinion as part of a review assignment - CORRECT ANSWER c) The reviewer may use a different scope of work than the original appraiser A reviewer is responsible for ensuring that there is __________ in a review report so that it can be properly understood by ___________. a) Current information; intended users b) Meaningful analysis; anyone c) Credible Data; Anyone d) Sufficient Information; Intended Users - CORRECT ANSWER d) Sufficient Information; Intended Users A reviewer performing an appraisal review must not sign the work under review unless he or she: a) Knows the appraiser who performed the work under review b) Intends to accept the responsibility as a co-signer of the work c) Has sufficient E&O insurance to indemnify the client against loss d) Agrees with its conclusions - CORRECT ANSWER b) Intends to accept the responsibility as a co-signer of the work What is the stated purpose of USPAP? a) Establish requirements that licensed and certified appraisers must follow b) Promote and maintain a high level of public trust in appraisal practice c) Establish a federal appraisal enforcement agency d) Create requirements so stringent that no appraiser can possibly comply with them - CORRECT ANSWER b) Promote and maintain a high level of public trust in appraisal practice The preamble states that USPAP is: a) Only for appraisers b) Limited to state-licensed or certified appraisers c) Only for users of appraisal services d) For appraisers and users of appraisal services - CORRECT ANSWER d) For appraisers and users of appraisal services When obligated by law or regulation, an appraiser ________ comply with USPAP a) Must b) May c) Should d) Need Not - CORRECT ANSWER a) Must What could cause an appraiser to prepare an appraisal assignment in conformance with USPAP? a) A deed restriction on the property being appraised b) Law or regulation, agreement with the client, or voluntary choice by the appraiser c) Only specific written instructions from the intended user can trigger USPAP compliance d) Law or regulation only - CORRECT ANSWER b) Law or regulation, agreement with the client, or voluntary choice by the appraiser One of an appraiser's obligations with regard to user expectations is to: a) Identify the capacity in which he or she is performing b) Ensure the appraisal or appraisal review results help the client's cause c) Withdraw from an appraisal assignment if the value is not going to be sufficient to meet the client's needs - CORRECT ANSWER a) Identify the capacity in which he or she is perfomring Which statement is TRUE regarding the relationship between valuation services and appraisal practice? a) Appraisal practice is a subset of valuation services b) Appraisal practice and valuation services have no relationship c) Valuation services is a subset of appraisal practice - CORRECT ANSWER a) Appraisal practice is a subset of valuation services Scope of Work Rule, Sections - CORRECT ANSWER 1. Problem Identification 2. Scope of work Acceptability 3. Disclosure Obligations To what does the scope of work rule apply to? - CORRECT ANSWER - Appraisal - Appraisal Review Assignments Scope of work includes... - CORRECT ANSWER -The extent to which the property is identified - The extent to which tangible property is inspection - The type and extent of data researched - The type and extent of analyses applied to arrive at opinions or conclusions How is the credibility of assignment results measured? - CORRECT ANSWER It is measured in the context of intended use Intended use - CORRECT ANSWER -An appraisal cannot be completed without identifying an intended use -The intended use drives the research and analyses required for credible appraisal results Types of appraisal effective dates - CORRECT ANSWER 1. Retrospective 2. Current 3. Prospective Who is responsible for identifying the subject property and its relevant characteristics? - CORRECT ANSWER The appraiser Assignment Conditions - CORRECT ANSWER -Assumptions -Extraordinary Assumptions -Hypothetical Assumptions -Laws and regulations -Jurisdictional Exceptions -Other conditions that affect the scope of work Scope of work Rule - CORRECT ANSWER Laws, including constitutions, legislative, and court-made law, administrative rules, and ordinances. Regulations include rules or orders, having legal force, issued by an administrative agency Scope of work is acceptable when... - CORRECT ANSWER The expectations of parties who are regularly intended users for similar assignments and what an appraiser's peers' actions would be in performing the same or similar assignments Redetermining Scope of work - CORRECT ANSWER The Scope of work is an ongoing process, it may change throughout the appraisal. An appraiser may revise the scope of work during the assignment Who is responsible for the determination of the scope of work? - CORRECT ANSWER The Appraiser Assignment Conditions, Limitations - CORRECT ANSWER An appraiser must not allow assignment conditions to limit the scope of work to such a degree that assignment results are not credible in the context of the intended use Where must scope of work be disclosed in the report? - CORRECT ANSWER There is no specific section, it can be disclosed anywhere throughout the repot What must the scope of work include? - CORRECT ANSWER The report must contain sufficient information to allow intended users to understand the scope of work performed If an appraiser assumes a condition to be true that does not exist for the purpose of analysis, this is an example of: A) A limiting condition b) An assumption c) A hypothetical condition d) An extraordinary Assumption - CORRECT ANSWER c) 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: a) A limiting condition b) An extraordinary Assumption c) An assignment condition d) A hypothetical condition - CORRECT ANSWER b) An extraordinary assumption "The monetary relationship between properties and those who buy, sell, or use those properties" is the definition of: a) None of these b) Price c) Cost d) Value - CORRECT ANSWER d) Value By using a published cost manual, an appraiser determines that the construction of of a 2,500 SF dwelling is $400,000. This figure represents the dwelling's a) Cost b) Price c) Value - CORRECT ANSWER a) Cost Which of these statements is TRUE about the USPAP definition of client? a) The client must be an individual, not a group or entity b) The client may engage the appraiser through an agent c) The client must personally engage the appraiser - CORRECT ANSWER b) The client may engage the appraiser through an agent According to USPAP, the party or parties who engage an appraiser in a specific assignment defines the: a) Party who pays the fee b) Other intended users c) Appraiser's Peers d) Client - CORRECT ANSWER d) Client Who makes the identification of the intended use in the assignment? a) The appraisal standards board b) The intended users themselves c) The appraiser d) The Client - CORRECT ANSWER c) The appraiser An intended user is: a) Only the party who pays for the appraisal report b) A party who is identified by the appraiser based on communication with the client at the time of the assignment c) Anyone who uses the appraisal report d) Anyone who receives the appraisal report from the client - CORRECT ANSWER b) A party who is identified by the appraiser based on communication with the client at the time of the assignment Which statement about intended users is TRUE? a) An appraiser may retroactively add an intended user after an assignment has been completed b) The client is always an intended user c) The client must be the only identified intended user. - CORRECT ANSWER b) The client is always an intended user What is appraisal practice a subset of? - CORRECT ANSWER Appraisal practice is a subset of valuation services 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? a) A valuation service b) An appraisal c) A USPAP service d) Not an appraisal, but still part of appraisal practice - CORRECT ANSWER A) A valuation Service A workfile must be maintained for: a) All appraisal and appraisal review assignments b) Valuation services that are outside USPAP c) Oral appraisal reports only d) Written appraisal reports only - CORRECT ANSWER a) All appraisal and appraisal review assignments Appraisal practice includes only: a) Appraisal and appraisal review b) Market value appraisals c) Work completed by licensed and certified appraisers d) Valuation services provided by an individual acting as an appraiser - CORRECT ANSWER d) Valuation services provided by an individual acting as an appraiser Which is a broader category of services? a) Valuation services b) Appraisal Practice - CORRECT ANSWER a) Valuation services "The type and extent of research and analyses in an assignment" is the definition of a) Report b) Signature c) Scope of work d) Intended use - CORRECT ANSWER c) Scope of work In USPAP, each standard is composed of: a) Voluntary guidance b) Statements on appraisal standards c) Standard rules d) Practical advice - CORRECT ANSWER c) Standards Rules Which independent board was created within The appraisal foundation in 2010? a) Appraiser Qualifications Board (AQB) b) Consumer Financial Protection Bureau (CFPB) c) Appraisal Practices Board (APB) d) Appraisal Subcommittee (ASC) - CORRECT ANSWER C) Appraisal Practices Board Qualification criteria for appraiser certification and recertification are disseminated to state appraisal boards by the: a) Consumer Financial Protection Bureau (CFPB) b) Appraisal Standards Board (ASB) c) Board of Trustees (BOT) d) Appraiser Qualifications Board (AQB) - CORRECT ANSWER d) Appraiser Qualifications Board (AQB) Advisory Opinions are best described as: a) Subject to Fannie Mae Requirements b) Issued by the Appraisal Subcommittee (ASC) c) Not part of USPAP, but included as reference material d) An alternative index to USPAP - CORRECT ANSWER C) Not part of USPAP, but included as reference material The guidance issued by the Appraisal Practices Board is Considered: a) Part of USPAP b) Only applicable in appraisals prepared for mortgage lending c) Voluntary - CORRECT ANSWER C) Voluntary USPAP is developed, interpreted, and amended by the: a) Appraisal Subcommittee (ASC) b) Appraisal Practices Board (APB) c) Appraisal Standards Board (ASB) d) Appraiser Qualifications Board (AQB) - CORRECT ANSWER C) Appraisal Standards Board (ASB) Which entity maintains the official national registry of state-certified and licensed appraisers? a) Appraisal Subcommittee (ASC) b) Appraisal Standards Board (ASB) c) Appraiser Qualifications Board (AQB) d) The Appraisal Foundation (TAF) - CORRECT ANSWER a) Appraisal Subcommittee (ASC) Which is NOT a responsibility of the Appraisal Subcommittee (ASC) ? a) Developing, amending, and interpreting USPAP b) Maintaining a national registry of licensed and certified appraisers c) Monitoring the practices, procedures, and activities of The Appraisal Foundation d) Monitoring each state's appraiser licensing and certification program - CORRECT ANSWER a) Developing, amending, and interpreting USPAP The first step in the appraisal process is a) Perform market analysis and highest and best use b) Reconcile the value indicators c) Determine scope of work d) Identify the problem - CORRECT ANSWER d) Identify the problem Purpose of USPAP - CORRECT ANSWER To promote and maintain a high level of public trust in appraisal practice by establishing requirements for appraisers. USPAP is required by - CORRECT ANSWER -Law -Regulation -Agreement (with the client or other intended users) Property Types covered under USPAP - CORRECT ANSWER -Tangible Property (both real and personal property) -Intangible Property (Business interests and others) When MUST an appraiser comply with USPAP? - CORRECT ANSWER An individual must comply with USPAP when required by law, regulation, or agreement with the client or other intended users When SHOULD an appraiser comply with USPAP? - CORRECT ANSWER An individual should comply with USPAP when choosing to represent oneself as an appraiser Acting as an appraiser means... - CORRECT ANSWER -Representing oneself as an appraiser - An expectation of appraisal competence in the service being provided - An expectation that the service will be provided in a manner that is independent, impartial, and objective The payment of fees by the appraiser in connection with the procurement of an assignment is: a) Allowed if properly disclosed b) Prohibited by the ETHICS RULE c) A scope of work decision considered unethical in all cases d) A jurisdictional exception acceptable if acknowledged in the engagement letter - CORRECT ANSWER a) Allowed if properly disclosed The disclosure of confidential information to a third party is unethical unless: a) Authorized by the client b) Needed in another similar assignment c) Instructed by an attorney d) Beneficial to the borrower - CORRECT ANSWER a) Authorized by the client A subject property's physical characteristics are _________ Assignment Results a) Sometimes b) Always c) The same thing as d) NOT - CORRECT ANSWER d) NOT Confidential information under USPAP is information the appraiser receives from: a) Another appraiser b) The real estate agent c) The client and is identified as confidential, but is not available from other sources d) The client and is identified as confidential but is available from other sources - CORRECT ANSWER c) The client and is identified as confidential, but is not available from other sources An appraiser prepared an appraisal report in April 2011. He testified in court regarding the value of the property in January 2012. The decision was rendered in February 2012 and was appealed in March 2012. The appellate court heard the case in January 2013 and remanded the case for reconsideration by the lower court. Final disposition of the case occurred in September 2013. At a minimum, how long must the appraiser retain his work file? a) September 2015 b) February 2014 c) September 2018 d) April 2016 - CORRECT ANSWER d) April 2016 Which statement about an appraiser's workfile is TRUE? a) USPAP requires an appraiser to retain his or her workfiles for a minimum of 7 years b) An appraiser may choose not to create a workfile for certain appraisal assignments c) The workfile may be created after the report has been issued d) The workfile must be in existence prior to the issuance of a report - CORRECT ANSWER d) 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? a) Clients are required to be competent b) Lack of competency is expected by clients c) It is fundamental to the definition of "appraiser." d) It is an ideal, virtually impossible to achieve - CORRECT ANSWER c) It is fundamental to the definition of "appraiser." In order to accept an assignment when an appraiser initially lacks the knowledge and experience to complete an assignment competently, he or she must: a) Refer the appraisal to an appraiser qualified to complete the assignment b) Associate with an appraiser qualified to complete the assignment c) Ask for more time and reduce the fee d) Disclose to the client, prior to accepting the assignment, the lack of knowledge or experience - CORRECT ANSWER d) Disclose to the client, prior to accepting the assignment, the lack of knowledge or experience 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 must she do to comply with USPAP? a) Have another appraiser co-sign the work with her b) Nothing; she has fulfilled her USPAP obligation c) Disclose in the report her initial lack of competency and the steps taken to obtain completency - CORRECT ANSWER c) Disclose in the report her initial lack of competency and the steps taken to obtain completency Three appraisers work together on an appraisal assignment. What would NOT be an appropriate workfile arrangement under USPAP? a) The workfile is kept in a location where all three appraisers will be able to access it. b) The workfile is posted on the internet, so that anyone who wants to see it will be able to access it. c) Each appraiser maintains a copy of the workfile. - CORRECT ANSWER b) The workfile is posted on the internet, so that anyone who wants to see it will be able to access it Which statement about appraisal trainees and workfile obligations is true? a) Under USPAP, trainees are not permitted to keep or possess workfiles b) Under USPAP, trainees have the same workfile obligations as licensed or certified appraisers c) Trainees have no USPAP obligations because they are not licensed or certified d) Trainees should follow their supervising appraiser's instructions and not worry about USPAP - CORRECT ANSWER b) Under USPAP, trainees have the same workfile obligations as licensed or certified appraisers 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? a) Yes, as long as the appraiser clearly discloses the basis of such a contingency in the certification and in any letter of transmittal. b) No, the fee arrangement is an unethical contingency arrangement and violates the ETHICS RULE c) No, unless the appraiser receives written permission allowing the transfer of the appraisal to other parties d) Yes, this is a business decision between the appraiser and the client. - CORRECT ANSWER b) No, the fee arrangement is an unethical contingency arrangement and violates the ETHICS RULE The credibility of assignment results is measured in the context of: a) Fannie Mae's collateral underwriter program b) The intended use c) A review by the ASB d) Whether or not the client's objectives are met - CORRECT ANSWER b) The intended use Appraisers have broad _______ and significant _______ in determining the appropriate scope of work in assignment. a) Acceptance, liability b) Errors, omissions c) Boundaries, limitations d) Flexibility, responsibility - CORRECT ANSWER d) Flexibility, responsibility Identification of the intended use of an appraiser's opinions and conclusions is: a) Necessary for determining the appropriate scope of work b) Not required unless the client wants the intended use to be disclosed c) Not necessary in most appraisal assignments d) Necessary only when doing non-mortgage assignments - CORRECT ANSWER a) Necessary for determining the appropriate scope of work Intended use is: a) Determined by the client on the basis of communication with the appraiser b) Identified by the appraiser on the basis of communication with the client c) One of the last determinations to be made before submitting the report d) Not necessary to determine in an appraisal review assignment - CORRECT ANSWER b) Identified by the appraiser on the basis of communication with the client Examples of assignment conditions could include: a) Hypothetical conditions b) Extraordinary Assumptions c) Laws and regulations d) All of these answers - CORRECT ANSWER d) All of these answers Determining the scope of work requires: a) No input or information from the client or anyone else b) The appraiser to advocate for the client c) Information obtained through communication with the client - CORRECT ANSWER c) Information obtained through communication with the client In an assignment, the scope of work is an _______ process a) Unimportant b) Inflexible c) Ongoing d) Unnecessary - CORRECT ANSWER c) Ongoing The responsibility for the scope of work decision rests with the: a) Appraiser b) Appraiser's peers c) Client d) Intended Users - CORRECT ANSWER d) Appraiser Exclusion of a valuation approach that is not applicable in a given assignment is an example of: a) An unethical act by an appraiser b) A scope of work decision c) A non-credible appraisal - CORRECT ANSWER b) A scope of work decision An appraiser must not allow client objectives to cause the assignment results to be: a) Independent b) Biased c) Objective d) Impartial - CORRECT ANSWER b) Biased If a client's objectives result in an appraiser developing biased assignment results: a) The appraiser is not responsible; after all, he was just following orders b) The appraiser is solely responsible c) This is permissible as long as the appraiser discloses the bias d) The client has violated USPAP - CORRECT ANSWER b) The appraiser is solely responsible Scope of work has no disclosure requirements a) True b) False - CORRECT ANSWER b) False In reporting the scope of work under USPAP: a) Use of pre-printed is prohibited b) The scope of work must be described in a narrative style c) The report must contain sufficient information so that intended users understand the scope of work d) All written reports must contain a specific section titled "Scope of Work" - CORRECT ANSWER c) The report must contain sufficient information so that intended users understand the scope of work An appraiser's peers are defined as other appraisers who: a) Have expertise and competency in a similar type of assignment b) Hold the same level of state licensure c) Have a similar level of education d) Practice in the same market - CORRECT ANSWER a) Have expertise and competency in a similar type of assignment Exclusion of an approach that is not necessary for credible results in a given assignment is a: a) Scope of work decision b) Standards Rule c) Choice of the client d) Jurisdictional Exception - CORRECT ANSWER a) Scope of work decision An appraiser's report must contain _________________ to allow intended users to understand the scope of work performed a) A section titled "Scope of work" b) A pre-printed Statement c) No disclosure d) Sufficient Information - CORRECT ANSWER d) Sufficient Information An appraiser is valuing an environmentally contaminated property. Does USPAP require the appraiser to be an expert in the scientific aspects of contamination? a) No b) Yes c) An appraiser should not accept an assignment of this type - CORRECT ANSWER a) No In an appraisal report, the use of terms that reflect a scale such as "good" or "average": a) Involves the use of an extraordinary assumption b) Is illegally discriminatory, but does not violate USPAP c) Should include explanation that provides context d) Is a violation of USPAP - CORRECT ANSWER c) Should include explanation that provides context The competency required to appraise a subsidized housing ________ typical residential appraisal competency: a) Extends beyond b) Is basically the same as c) Is less stringent than - CORRECT ANSWER a) Extends beyond The use of supported conclusions related to race, color, or religion in an appraisal may be prohibited by applicable law. a) True b) False - CORRECT ANSWER a) True Which statement about the definition of market value is true? a) There is one universal definition of market value that is applicable in all assignments b) Market value is the same as cost c) There are many different definitions of market value; each one is unique d) All market value definitions are interchangeable - CORRECT ANSWER c) There are many different definitions of market value; each one is unique If a borrower attempts to engage an appraiser to complete an appraisal for a federally-regulated lending transaction, the appraiser should disclose: a) That the lender must engage the appraiser, and that the appraiser cannot later "readdress" the report b) That the lender must directly engage the appraiser, and that the report can only be readdressed with express written permission from the lender c) That the borrower is permitted to order the appraisal, and that the appraiser may later "readdress" the report, if needed - CORRECT ANSWER a) That the lender must engage the appraiser, and that the appraiser cannot later "readdress" the report The results of DCF Analysis should: a) Be expressed as a single-point value conclusion b) Not be included in appraisal report c) Be tested and checked for errors and reasonableness d) Not be referred to as an appraisal - CORRECT ANSWER c) Be tested and checked for errors and reasonableness If an appraiser uses a commercial software program for DCF analysis in an appraisal, what should the appraiser provide in the report? a) The name of the person who wrote the software program b) The name and version of the software program c) the original cost of the software program - CORRECT ANSWER b) The name and version of the software program What does the effective date of an appraisal establish? a) The date upon which the report was prepared b) The context of the market conditions for the appraiser's opinions c) The date the certification statement was signed d) The approximate date the appraiser can expect payment - CORRECT ANSWER b) The context of the market conditions for the appraiser's opinions What type of appraisal would be indicated by the phrase, "The market value of the subject property was $200,000"? a) Retrospective b) Current c) Prospective d) Concurrent - CORRECT ANSWER a) Retrospective Developing an opinion of value of a property as of a specified future date is: a) A prospective Appraisal b) A retrospective appraisal c) The most common type of appraisal d) Not permissible under USPAP - CORRECT ANSWER a) A prospective Appraisal How many active statements on Appraisal Standards are currently in USPAP? a) 0 b) 3 c) 5 d) 7 - CORRECT ANSWER a) 0 An evaluation of real property collateral, as defined in the Agencies' guidelines is considered ______ under USPAP a) An appraisal b) A non-valuation service c) An appraisal Review d) Not permissible - CORRECT ANSWER a) An appraisal An appraiser provides raw AVM output to a lender. This is: a) Not an appraisal; however, a workfile is required by USPAP b) An appraisal under STANDARDS 1 and 2 c) Not an appraisal, and no workfile is required d) A violation of the ETHICS RULE - CORRECT ANSWER c) Not an appraisal, and no workfile is required Which statement about the definition of market value is true? a) All market value definitions are interchangeable b) There is one universal definition market value that is applicable in all assignments c) Market value is the same as cost d) There are many different definitions of market value, each one is unique - CORRECT ANSWER d) There are many different definitions of market value, each one is unique A value opinion developed to reflect the most probably price under a forced-sale condition is: a) Consistent with the market value definition found FIRREA b) Not consistent with market value c) Not credible d) consistent with the market value definition found in USPAP - CORRECT ANSWER b) Not consistent with market value Appraisals for federally-regulated financial institutions often involve the use of the Jurisdictional Exception rule a) True b) False - CORRECT ANSWER b) False Laws and regulations that apply to an appraisal for a federally-regulated lending transaction would be considered: a) Assignment condition b) limiting condition c) Hypothetical Condition d) Jurisdictional Exception - CORRECT ANSWER a) Assignment condition What is the purpose of the jurisdictional exception rule? a) To allow USPAP to preempt existing laws and regulations b) To preserve the balance of USPAP if compliance with a part of USPAP is precluded by law or regulation c) To provide state appraisal regulatory agencies additional enforcement powers d) To allow attorneys to appraise real property without a state license or certification - CORRECT ANSWER b) 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? a) Include a copy of the applicable law or regulation as an addendum to the appraisal or appraisal review report b) 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 c) Nothing; the law automatically supersedes USPAP and eliminates any need for disclosure - CORRECT ANSWER b) 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: a) Ignore the law and adhere to USPAP b) Comply with that law or regulation c) Ignore USPAP d) Be allowed to take exception to the law or regulation - CORRECT ANSWER b) Comply with that law or regulation Appraisers cannot be expected to be aware of all the laws and regulations that apply to a particular assignment: a) True b) False - CORRECT ANSWER b) False If a law or regulation precludes an appraiser with complying with a part of USPAP: a) The appraiser should ignore the law or regulation, and comply with USPAP b) The appraiser may choose to invoke the jurisdictional exception rule c) A jurisdictional exception is automatically created - CORRECT ANSWER c) A jurisdictional exception is automatically created As used in the Jurisdictional Exception Rule, the term "law" includes __________ a) Administrative rules and ordinances only b) Constitutions, legislative, and court-made law, and administrative rules and ordinances c) Court-made laws only d) Legislative laws only - CORRECT ANSWER b) Constitutions, legislative, and court-made law, and administrative rules and ordinances When does a jurisdictional exception occur in an assignment? a) The state enforcement agency must approve of the exception to USPAP compliance b) The appraiser must invoke the rule c) The client must invoke the rule d) It is automatic when a law precludes compliance with a part of USPAP - CORRECT ANSWER d) It is automatic when a law precludes compliance with a part of USPAP A state passes a law requiring appraisers to keep their workfiles to 10 years after preparation of the report. Would this be a jurisdictional exception under USPAP? a) No b) Cannot determine from the information provided c) Yes - CORRECT ANSWER a) No Which of these is an example of a jurisdictional exception in an appraisal assignment? a) State regulations requiring appraisers to keep workfiles for six year b) A probate court paying appraisers based on the value of the subject property c) An attorney asking an appraiser not to analyze the prior sales history of the subject property d) A client requesting a specific definition of value - CORRECT ANSWER b) A probate court paying appraisers based on the value of the subject property In a written mass appraisal report prepared under STANDARD 6, what is the purpose of a signed certification? a) It serves to acknowledge that the appraiser's opinions were developed under the requirements of STANDARD 1 b) It serves as an appraiser's acknowledgement of his or her ethical obligations c) A signed certification is not required in a report of mass appraisal d) It certifies that the appraiser has met his or her continuing education requirements - CORRECT ANSWER b) It serves as an appraiser's acknowledgement of his or her ethical obligations When appraising personal property, the appraiser must analyze prior sales of the subject over what time period? a) A reasonable and applicable time b) One year c) Three Years d) Five Years - CORRECT ANSWER a) 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 a) True b) False - CORRECT ANSWER a) True Which of the following reports require a signed certification? a) All oral and written reports covered in USPAP b) Only real property appraisal reports c) Only personal property and appraisal review reports d) All reports except mass appraisal - CORRECT ANSWER a) All oral and written reports covered in USPAP Under STANDARD 8, a personal property appraiser has ____ written report options a) Two b) Three c) Four d) STANDARD 8 does not establish written report options - CORRECT ANSWER a) Two An appraiser's certification in a business or intangible asset appraisal report does NOT: a) Contain a reference to the inspection of the subject property b) State that the appraiser has prepared and reported the analysis in conformity with USPAP c) State that the appraiser has no bias - CORRECT ANSWER a) 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? a) Appraisal report or business appraisal report b) Self-contained appraisal report or summary appraisal report c) Appraisal report or restricted appraisal report d) Written appraisal report or electronic appraisal report - CORRECT ANSWER c) Appraisal report or restricted appraisal report STANDARD 6, Mass Appraisal, applies to: a) Real property only for the purposes of ad valorem taxation b) Personal property only c) Both real and personal property d) Real property only - CORRECT ANSWER c) Both real and personal property STANDARD 6 is most similar in structure to: a) STANDARD 2 b) STANDARD 9 c) STANDARD 1 d) STANDARD 3 - CORRECT ANSWER d) STANDARD 3 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? a) STANDARD 6 b) STANDARDS 7 & 8 c) STANDARDS 1 & 2 d) STANDARDS 4 & 5 - CORRECT ANSWER c) STANDARDS 1 & 2 Notifications sent to property owners of the results of a mass appraisal, which may be required by public policy, are considered: a) Reports under STANDARD 6 b) Notifications, and not reports c) Reports under STANDARD 2 d) violations of the ETHICS RULE of USPAP - CORRECT ANSWER b) Notifications, and not reports When reporting the results of a business appraisal, which of these is NOT a permissible option for an appraiser? a) Limited report b) Restricted appraisal report c) Oral Report d) Appraisal Report - CORRECT ANSWER a) Limited report In a personal property appraisal assignment that includes multiple objects as part of the same assignment: a) An appraiser must be licensed or certified as a personal property appraiser in order to complete the assignment b) All objects must have the same value c) The objects that are more significant to the assignment results should be the focus of the analysis d) All objects must be given the same focus regardless of their values or significance - CORRECT ANSWER c) The objects that are more significant to the assignment results should be the focus of the analysis Which board within The Appraisal Foundation has the authority to make revisions to USPAP? Board of Trustees (BOT) Appraisal Standards Board (ASB) Appraiser Qualifications Board (AQB) All boards within the Foundation have the authority to revise USPAP - CORRECT ANSWER Appraisal Standards Board (ASB) The three independent boards within The Appraisal Foundation include: Appraisal Standards Board, Appraisal Subcommittee, Federal Housing Finance Agency Appraisal Standards Board, Appraiser Qualifications Board, Board of Trustees Board of Trustees, Federal Housing Board, Fannie Mae Board Appraisal Standards Board, Federal Appraiser Board, Federal Housing Administration - CORRECT ANSWER Appraisal Standards Board, Appraiser Qualifications Board, Board of Trustees Which law mandated that all states must establish a program for appraiser licensing and certification? HVCC Dodd-Frank Act Truth in Lending Act FIRREA - CORRECT ANSWER FIRREA Who is responsible for appointing members to the Appraiser Qualifications Board? Appraisal Standards Board (ASB) The Secretary of HUD The AQB appoints its own members The Board of Trustees (BOT) - CORRECT ANSWER the board of trustees (bot) The Dodd-Frank Act of 2010 requires the ASC to create and maintain a national registry of: Home builders and contractors Subprime lenders Appraisal trainees and supervisors Appraisal management companies - CORRECT ANSWER Appraisal management companies The ASC's National Complaint Hotline will provide referrals for complaints against: Appraisers only AMCs only Appraisers, lenders, AMCs or others Government entities such as state appraisal boards and HUD - CORRECT ANSWER Appraisers, lenders, AMCs or others The ASC is composed of members appointed by the four federal financial institution regulatory agencies, plus the Bureau of Consumer Financial Protection, the Federal Housing Finance Agency, and _____________. Department of Homeland Security Environmental Protection Agency National Association of Homebuilders Department of Housing and Urban Development - CORRECT ANSWER Department of Housing and Urban Development Currently, what is the annual national registry fee per appraiser? $25 $40 $75 $100 - CORRECT ANSWER 40 Which entity is responsible for monitoring The Appraisal Foundation to ensure it is properly fulfilling its responsibilities under Title XI of FIRREA? Appraisal Subcommittee (ASC) U.S. Department of HUD Appraiser Qualifications Board (AQB) State appraisal regulatory agencies - CORRECT ANSWER asc An appraiser violates the laws of his state when performing an appraisal. Which entity may take disciplinary action against him? The Appraiser Qualifications Board (AQB) The Appraisal Standards Board (ASB) The state appraisal regulatory agency Any and all of these entities may pursue disciplinary action - CORRECT ANSWER The state appraisal regulatory agency An individual submits an application to become a certified appraiser. Who is responsible for approving or disapproving the application? Appraisal Subcommittee (ASC) The state appraisal regulatory agency Appraiser Qualifications Board (AQB) A professional appraisal organization - CORRECT ANSWER The state appraisal regulatory agency Which of these is NOT a function performed by professional appraiser organizations? Disseminating professional publications and trade journals Issuing appraisal credentials Offering networking opportunities Providing legislative lobbying and advocacy - CORRECT ANSWER Issuing appraisal credentials How often do ASC representatives perform an on-site review of each state's appraisal licensing and certification program? Monthly Every year Every two years Every three years - CORRECT ANSWER every 2 years The Appraisal Foundation issues Valuation Advisories on recognized appraisal methods and techniques. For appraisers, compliance with these Valuation Advisories is: Voluntary Required by state appraisal regulatory agencies Forbidden Mandated by federal law - CORRECT ANSWER voluntary Which federal entity maintains oversight authority over state appraisal regulatory agencies? The Appraisal Foundation (TAF) U.S. Department of HUD Appraisal Subcommittee (ASC) No one; these agencies are self-policing - CORRECT ANSWER asc Before the AQB revises the Real Property Appraiser Qualification Criteria, it must first: Expose the proposed changes and solicit comments Demonstrate that the proposed changes will not affect the profession Formally poll all appraisers in the United States Receive formal approval from the U.S. Department of HUD - CORRECT ANSWER Expose the proposed changes and solicit comments According to the AQB minimum criteria, an applicant for a Licensed Residential Appraiser credential must obtain _______ experience hours in no fewer than _______ months. 1,000; 6 1,000; 12 2,000; 16 2,000; 24 - CORRECT ANSWER 1000; 6 A Trainee Appraiser wishes to upgrade to a Licensed Residential Appraiser credential. Under the AQB Criteria, how many additional hours of appraisal education must the Trainee Appraiser complete? 25 50 75 90 - CORRECT ANSWER 75 As the term "Trainee Appraiser" is used in the AQB Criteria, it refers to which state-specific terms? Trainee Appraisers only Provisional Appraisers only Registered Appraisers only The term "Trainee Appraiser" refers to all of these - CORRECT ANSWER The term "Trainee Appraiser" refers to all of these To obtain a Licensed Residential Appraiser credential, an applicant must obtain ______ creditable hours of appraisal education. 120 150 200 2,000 - CORRECT ANSWER 150 Which type of appraisal credential does not require an applicant to possess any appraisal experience? Licensed Residential Appraiser Trainee Appraiser Certified Residential Appraiser None of these classifications requires an applicant to possess appraisal experience - CORRECT ANSWER Trainee Appraiser An applicant for a Certified Residential Appraiser credential must possess _________ from an accredited college or university. A Bachelor's degree or higher An Associate's degree in a concentrated field of study related to business or real estate 30 semester credit hours in specified topics Any of these - CORRECT ANSWER any of these A holder of a valid Certified Residential Appraiser credential wants to upgrade to a Certified General credential. How many additional hours of appraisal education does he or she need in order to qualify? 100 150 175 200 - CORRECT ANSWER 100 A Trainee Appraiser wishes to take the examination to become a Certified Residential Appraiser. When may he take the exam? Any time he wishes to take it After he has completed the required education After he has accumulated the required number of experience hours Only after he completes his education and experience requirements - CORRECT ANSWER Only after he completes his education and experience requirements An applicant for a Certified General Appraiser credential must have accumulated a minimum of how many hours of non-residential appraisal work? 1,000 1,500 2,000 2,500 - CORRECT ANSWER 1500 An applicant for a Certified General Appraiser credential must have _________ from an accredited college or university. An Associate degree or higher A Bachelor's degree or higher A Master's or Doctorate degree 30 semester credit hours of education in economics and mathematics - CORRECT ANSWER A Bachelor's degree or higher For a distance education course to be acceptable for appraiser qualifying education, it must include a written examination. What does the term "written" mean in this requirement? A paper exam only An electronically-administered exam only A paper exam or an electronically-administered exam A written or orally-administered exam - CORRECT ANSWER A paper exam or an electronically-administered exam A Certified Residential Appraiser wants to act as a Supervisory Appraiser. The appraiser had his certificate suspended by the state two years ago, but has had no disciplinary issues since that time. Is the appraiser qualified to be a Supervisory Appraiser? Yes, because the appraiser is currently "in good standing" No, because the suspension permanently disqualifies the appraiser from ever acting as a Supervisory Appraiser Yes, because the suspension was over one year ago No, because the appraiser must have been "in good standing" for a period of at least three years - CORRECT ANSWER No, because the appraiser must have been "in good standing" for a period of at least three years In order to be acceptable for appraiser qualifying education, an appraisal course must be a minimum of ____ hours in length. Three Seven Ten Fifteen - CORRECT ANSWER 15 Trainee Appraiser Ed is trying to complete his qualifying education courses toward becoming a Certified Residential Appraiser. Which one of these courses would NOT count toward meeting that requirement? 30-hour Residential Sales Comparison and Income Approaches 15-hour Statistics, Modeling, and Finance 7-hour USPAP Update Course 20-hour course in Appraisal Subject Matter Electives - CORRECT ANSWER 7-hour USPAP Update Course The AQB requirements for Supervisory Appraisers would apply to whom? An individual who is supervising a Certified Residential Appraiser An individual who is supervising a Licensed Residential Appraiser An individual who is supervising a Trainee Appraiser All of these - CORRECT ANSWER An individual who is supervising a Trainee Appraiser Which of the following appraisal credentials allows the credential holder to appraise any one-to-four family residential property, regardless of complexity? Licensed Residential Appraiser only Trainee Appraiser only Certified Residential Appraiser only Both Licensed Residential Appraiser and Certified Residential Appraiser - CORRECT ANSWER Certified Residential Appraiser only In order to be acceptable for appraiser qualifying education, an appraisal course must include ________ examination. An oral An open-book A closed-book An optional - CORRECT ANSWER A closed-book According to the AQB Criteria, an applicant for a Licensed Residential Appraiser credential must obtain _______ experience hours in no fewer than _______ months. 1,000; 6 1,000; 12 1,500; 12 2,000; 24 - CORRECT ANSWER 1000;6 The AQB requires an appraiser to have at least _____ years of experience as a certified appraiser before he or she may act as a Supervisory Appraiser. Two Three Four Six - CORRECT ANSWER 3 The definition of __________ appraisal includes the phrase "One in which the property to be appraised, the form of ownership, or the market conditions are atypical." Complex one-to-four family residential property Non-residential property Limited Non-federally related two-to-four family real property - CORRECT ANSWER Complex one-to-four family residential property Appraiser Marie holds a valid Licensed Residential Appraiser Credential, and she wants to upgrade to a Certified Residential Appraiser credential. How many additional hours of appraisal education does she need, according to the AQB? 50 75 100 125 - CORRECT ANSWER 50 The AQB requirements for Supervisory Appraisers would apply to whom? An individual who is supervising a Certified Residential Appraiser An individual who is supervising a Licensed Residential Appraiser An individual who is supervising a Trainee Appraiser All of these - CORRECT ANSWER An individual who is supervising a Trainee Appraiser According to the current AQB Criteria, an applicant for a Certified Residential Appraiser credential must have accumulated _____ hours of appraisal experience, in no fewer than ______ months. 1,000; 6 1,200; 12 1,500; 12 3,000; 18 - CORRECT ANSWER 1500;12 According to the AQB Criteria, an applicant for a Trainee Appraiser credential must have completed _____ hours of appraisal education, including the __________ course. 120, 7-hour National USPAP Update 200, Residential Site Valuation and Cost Approach 75, 15-Hour National USPAP or equivalent 60, Basic Appraisal Procedures - CORRECT ANSWER 75, 15-Hour National USPAP or equivalent USPAP defines an appraiser as one who ___________. Is expected to perform valuation services competently and in a manner that is independent, impartial, and objective Is licensed or certified by the state where he or she is domiciled Has received formal training in appraisal procedures, practice, and ethics Has successfully completed the 15-hour National USPAP Course or its AQB-approved equivalent - CORRECT ANSWER Is expected to perform valuation services competently and in a manner that is independent, impartial, and objective Under the ETHICS RULE, Trainee Appraisers have _______ confidentiality requirements as compared to Supervisory Appraisers. Lesser The same More stringent No - CORRECT ANSWER the same A Trainee Appraiser is assisting in an appraisal under a Supervisory Appraiser. The Trainee Appraiser had provided prior real estate brokerage services on the subject property within the prior three years. The Trainee Appraiser is not signing the report certification. Does USPAP require the Supervisory Appraiser to disclose the prior service provided by the Trainee Appraiser? Yes, because the Trainee Appraiser has an obvious conflict of interest No, however if the appraiser believes disclosure is necessary, then it should be made Yes, the Supervisory Appraiser is required by USPAP to disclose this prior service provided by the Trainee Appraiser No, but the Trainee Appraiser is precluded from assisting in this assignment - CORRECT ANSWER No, however if the appraiser believes disclosure is necessary, then it should be made A Supervisory Appraiser who knowingly allows a Trainee Appraiser to communicate a misleading report has violated _________ of USPAP. The RECORD KEEPING RULE The ETHICS RULE The REPORTING RULE No part - CORRECT ANSWER the ethics rule May a Supervisory Appraiser provide blanket authorization for an experienced Trainee Appraiser to use the supervisor's signature? Yes, as long as the authorization is in writing No, this is specifically prohibited by the ETHICS RULE Yes, but the Trainee Appraiser must be careful not abuse this trust No, because an appraiser is never allowed to affix the signature of another appraiser to a report - CORRECT ANSWER No, this is specifically prohibited by the ETHICS RULE In an appraisal assignment, when is the workfile required to be in existence? Prior to the issuance of any report or communication of assignment results At the time the assignment is accepted Within a reasonable time period after the issuance of a report Only when the client requests a workfile - CORRECT ANSWER Prior to the issuance of any report or communication of assignment results The SCOPE OF WORK RULE governs what aspect of an appraisal assignment? Competency Reporting Development None, because it does not apply to appraisal - CORRECT ANSWER development An appraiser wishes to perform an appraisal assignment but he does not possess the necessary competency. What are his options under USPAP? He must decline the assignment Acquire the necessary competency or decline the assignment Complete the assignment competently or complete it incompetently Affiliate with another appraiser or disclose his lack of competency - CORRECT ANSWER Acquire the necessary competency or decline the assignment A Supervisory Appraiser denies a Trainee Appraiser's ability to access workfiles for appraisals on which the Trainee assisted, when the trainee has been asked to submit reports to the state appraisal regulatory agency. What part of USPAP has the Supervisory Appraiser violated? The COMPETENCY RULE The RECORD KEEPING RULE STANDARD 1 No part of USPAP has been violated - CORRECT ANSWER The RECORD KEEPING RULE A workfile access and retrieval agreement between a Trainee Appraiser and a Supervisory Appraiser: Must be in writing Is illegal Must comply with the form and format specified in USPAP May be written or oral - CORRECT ANSWER may be written or oral Trainee Tom asks Appraiser Anne for access to a workfile for an assignment on which he had provided assistance to her. He is required to submit the report and workfile to the state appraisal regulatory agency as part of an experience audit. Anne does not want to provide access to this information. Which statement is TRUE regarding this situation? Anne may deny access to the workfile at her discretion. If Anne provides Tom access to the workfile, she will violate the Confidentiality section of the ETHICS RULE. Anne must provide access to the workfile in this situation. Tom was required to maintain his own copy of the workfile, and should have done so. - CORRECT ANSWER Anne must provide access to the workfile in this situation. The SCOPE OF WORK RULE applies in: Appraisal assignments only Appraisal or appraisal review assignments only Mass appraisal assignments only All assignments that an individual performs as an appraiser - CORRECT ANSWER Appraisal or appraisal review assignments only When a Trainee Appraiser and a Supervisory Appraiser work together on an assignment, which one must retain custody of the workfile? The Trainee Appraiser The Supervisory Appraiser They each must have separate copies of the workfile Either, but one must take responsibility - CORRECT ANSWER either but one must take responsibility At the beginning of the Trainee Appraiser's career, who is likely to bear primary responsibility for the scope of work determination in an appraisal assignment? The Trainee Appraiser The Supervisory Appraiser The client The Appraisal Standards Board - CORRECT ANSWER The Supervisory Appraiser Trainee Tina assists Supervisor Sam in a real property appraisal assignment; however Tina does not sign the certification. Where does USPAP require Sam to disclose the extent of Tina's assistance in the Appraisal Report? Anywhere Nowhere; this disclosure is not required In the certification On the title page - CORRECT ANSWER anywhere A Trainee Appraiser who signs a certification in a real property appraisal report has: Violated USPAP Accepted full responsibility for the assignment results and the report Committed a violation of federal law Accepted responsibility for only those parts of the appraisal on which he or she provided assistance - CORRECT ANSWER Accepted full responsibility for the assignment results and the report STANDARD 1 in USPAP establishes the requirements for: Reporting a real property appraisal Developing a real property appraisal Disclosing prior services provided regarding the subject property Customary and reasonable fees - CORRECT ANSWER Developing a real property appraisal Which approach or approaches must be developed in every real property appraisal assignment? The sales comparison approach only The cost approach only Both the sales comparison and cost approaches Whatever approach or approaches are necessary for credible results - CORRECT ANSWER Whatever approach or approaches are necessary for credible results A Trainee Appraiser assists a Supervisory Appraiser in the performance of an appraisal. The Trainee Appraiser's only contribution to the assignment is assisting in the property inspection and preliminary MLS research into comparable sales. Should the Trainee Appraiser sign the certification in this appraisal report? Yes, all trainees must sign all reports on which they provided assistance No, because the trainee's contribution to the assignment was limited Yes, because if the trainee doesn't sign, that would be a violation of USPAP No, because trainees are not permitted to sign appraisal reports - CORRECT ANSWER No, because the trainee's contribution to the assignment was limited In a market value appraisal, USPAP requires appraisers to analyze, if available in the normal course of business: The most recent prior sale of the subject property if it occurred within 3 years of the effective date of the appraisal All sales of the subject property that occurred within 3 years prior to the effective date of the appraisal All sales of the subject property that occurred within 3 months prior to the date of the report All prior sales of the subject property, regardless of how long ago they occurred - CORRECT ANSWER All sales of the subject property that occurred within 3 years prior to the effective date of the appraisal Which of these is the MOST appropriately rounded final value opinion? $104,550 $3,646,000 $2,050,000 $384,700 - CORRECT ANSWER $2,050,000 Trainee Appraisers have ________ workfile responsibilities as Supervisory Appraisers. Lesser Equal Greater No - CORRECT ANSWER equal The employing company for a Trainee Appraiser has policies that do not comply with USPAP. What should the Trainee Appraiser do? Comply with the employing company's policies File a complaint against the company with the state appraisal regulatory agency File a grievance with The Appraisal Foundation Take whatever steps are necessary to ensure USPAP compliance - CORRECT ANSWER Take whatever steps are necessary to ensure USPAP compliance A Trainee Appraiser makes a minor error in an appraisal that does not affect the value conclusion. Is this a violation of USPAP? Yes, because all errors are violations of USPAP No, because USPAP does not require perfection Yes, but the Supervisory Appraiser is solely responsible for the USPAP violation No, but the error is a violation of state laws and regulations - CORRECT ANSWER No, because USPAP does not require perfection Who is responsible for complying with USPAP? Appraisal companies only Individual appraisers only Individual appraisers and appraisal companies jointly An appraiser's clients - CORRECT ANSWER individual appraisers only Appraiser Amy agrees to present a seminar for a small lending institution to explain appraisal issues to the institution's staff. Does the ETHICS RULE of USPAP apply to Amy in performing this activity? Yes, because Amy is providing an appraisal No, because Amy may be unethical if she wants to Yes, because Amy is acting as an appraiser No, because USPAP does not apply if Amy is not performing an appraisal - CORRECT ANSWER Yes, because Amy is acting as an appraiser A Trainee Appraiser assists a Supervisory Appraiser in the performance of a real property appraisal. The Trainee Appraiser inspects the property, but the Supervisory Appraiser does not. Both appraisers sign the certification. Which of these statements in the certification would be appropriate? At least one of the signing appraisers has made a personal inspection of the property that is the subject of this report. The Trainee Appraiser has made a personal inspection of the subject property. The Supervisory Appraiser has not made an inspection of the subject property. Both the Trainee Appraiser and the Supervisory Appraiser have made a personal inspection of the subject property. I have (or have not) made a personal inspection of the property that is the subject of this report. - CORRECT ANSWER The Trainee Appraiser has made a personal inspection of the subject property. The Supervisory Appraiser has not made an inspection of the subject property. Generally speaking, a Trainee Appraiser who wishes to become credentialed as an appraiser has _____ paths from which to choose. Three Four Five Six - CORRECT ANSWER 3 The requirements for Trainee Appraiser and Supervisory Appraiser established by an individual credentialing jurisdiction ____________ the requirements established by the AQB. May not exceed May exceed Must be exactly the same as Are less important than - CORRECT ANSWER may exceed Once the Trainee Appraiser has established a goal of becoming a credentialed appraiser, who is responsible for monitoring the Trainee Appraiser's progress? The Trainee Appraiser only The Supervisory Appraiser The state appraisal regulatory agency No one - CORRECT ANSWER The Supervisory Appraiser Regarding the requirements for Trainee Appraiser and Supervisory Appraiser, the Supervisory Appraiser is responsible for understanding: The AQB requirements only The individual jurisdiction's requirements only The AQB requirements and the jurisdiction's requirements The applicability of the DEPARTURE RULE in USPAP - CORRECT ANSWER The AQB requirements and the jurisdiction's requirements Supervisory Appraisers are responsible for: Accompanying the Appraisal Trainee when he or she is taking classes Ensuring that the Trainee Appraiser can support his or her family Instructing the Trainee Appraiser in appraisal ethics Providing transportation for the Trainee Appraiser - CORRECT ANSWER Instructing the Trainee Appraiser in appraisal ethics The Trainee Appraiser's competency to inspect a property unsupervised: Should never be re-examined by the Supervisory Appraiser Will not vary by property type or complexity Should be evaluated on an assignment-by-assignment basis Does not matter; the Supervisory Appraiser must accompany the Trainee Appraiser on all inspections - CORRECT ANSWER Should be evaluated on an assignment-by-assignment basis Who is responsible for providing tasks to the Trainee Appraiser to ensure that he or she is progressing and learning? The Trainee Appraiser The Supervisory Appraiser The state appraisal regulatory agency The client - CORRECT ANSWER The Supervisory Appraiser If a Trainee Appraiser submits an experience log to a state appraisal regulatory agency claiming 50 experience hours on a non-complex single family home appraisal, what is MOST likely to happen? The experience log will be accepted as submitted The agency will request additional documentation from the Trainee Appraiser The applicant will be subject to discipline by the Appraisal Subcommittee The Appraiser Qualifications Board will reject the application - CORRECT ANSWER The agency will request additional documentation from the Trainee Appraiser Which of these is NOT one of the AQB minimum requirements for an experience log? Type of property Number of actual work hours by the trainee/applicant on the assignment A true copy of the appraisal report Date of report - CORRECT ANSWER A true copy of the appraisal report Subject to state-specific laws and regulations, a Supervisory Appraiser is responsible for accompanying the Trainee Appraiser on: All inspections until the Trainee Appraiser becomes licensed or certified All inspections until the Trainee Appraiser is competent to conduct inspections independently All inspections, even after the Trainee Appraiser becomes licensed or certified The first ten property inspections, after which the Trainee Appraiser is deemed competent to perform an inspection without supervision - CORRECT ANSWER All inspections until the Trainee Appraiser is competent to conduct inspections independently A Trainee Appraiser has more than one Supervisory Appraiser. How should experience logs be handled in this situation? A separate log should be maintained for each Supervisory Appraiser The Trainee Appraiser should keep one master log which includes all assignments The experience log must be saved in Microsoft Excel This is not permissible; a Trainee Appraiser may have only one Supervisory Appraiser - CORRECT ANSWER A separate log should be maintained for each Supervisory Appraiser A Supervisory Appraiser should be expected to instruct the Trainee Appraiser in: Appraisal ethics only Appraisal methods and techniques only Appraisal ethics and appraisal methods and techniques Personal finance, including how to create a budget and balance a checkbook - CORRECT ANSWER Appraisal ethics and appraisal methods and techniques The AQB minimum states that a Supervisory Appraiser must have _____ experience as a certified appraiser. 1 year of 2 years of 3 years of Extensive - CORRECT ANSWER 3 years of Which course is part of the Trainee Appraiser's required core curriculum, according to the AQB? Residential Site Valuation and Cost Approach 15 Hour National USPAP Course Statistics, Modeling, and Finance Residential Market Analysis and Highest and Best Use - CORRECT ANSWER 15 Hour National USPAP Course A Supervisory Appraiser has his certification suspended by a state appraisal regulatory agency. When must the Supervisory Appraiser notify his Trainee Appraiser of this disciplinary sanction? Within 30 days Immediately Before the Supervisory Appraiser renews his credential The Supervisory Appraiser does not have to inform the Trainee Appraiser unless the Trainee Appraiser was involved in the appraisal that led to the disciplinary sanction - CORRECT ANSWER immediately A Trainee Appraiser who performs the cost approach repeatedly on residential appraisal assignments: Is violating USPAP Is on the road to perfection Is forming habits that may be good or bad Should also be working on non-residential appraisals - CORRECT ANSWER Is forming habits that may be good or bad A Supervisory Appraiser must not have been subject to any prior disciplinary action within the prior _____ that would affect his or her ability to practice. Three years Four years Five years Six months - CORRECT ANSWER 3 years The AQB's requirements for an appraisal credential are: Maximums, and may not be exceeded by the credentialing jurisdiction Minimums, and may be exceeded by the credentialing jurisdiction Suggested guidelines, and are not intended to be enforceable New for 2015; there were no AQB requirements previously - CORRECT ANSWER Minimums, and may be exceeded by the credentialing jurisdiction The Supervisory Appraiser - Trainee Appraiser relationship is __________ commitment by both parties. An irrevocable A short-term A long-term An exclusive - CORRECT ANSWER long term A Supervisory Appraiser engages several appraisal trainees and has them turning out a high volume of appraisal reports with minimal training and supervision. This type of operation is known as: A USPAP factory A trainee school A typical appraisal shop An appraisal mill - CORRECT ANSWER An appraisal mill The ASC's National Registry would NOT be useful in searching for ________ Appraisers. Certified Residential Certified General Trainee Licensed Residential - CORRECT ANSWER trainee The ASC National Registry can be used to search for ________ appraisal credentials. Active only Expired only Both active and expired Supervisor and Trainee - CORRECT ANSWER Both active and expired A Supervisory Appraiser is bringing a Trainee Appraiser along too fast, and has assigned tasks that the Trainee Appraiser is not capable of completing. What should the Trainee Appraiser do? Not worry, because the Supervisory Appraiser is responsible for any errors that might be made Tell the Supervisory Appraiser Find a different Supervisory Appraiser Obtain a separate errors and omissions insurance policy - CORRECT ANSWER tell the supervisory appraiser Supervisor Scott has been working with Trainee Tara for over a year. Scott only assigns very basic tasks to Tara, and she feels she is not being challenged. Tara is anxious to progress in her appraisal knowledge. What should she do? Immediately disassociate with Scott and find a new Supervisory Appraiser Quietly begin to work on additional tasks without Scott knowing about it Inform Scott that she is ready for more advanced responsibilities Nothing; Scott is the boss and therefore he knows best - CORRECT ANSWER Inform Scott that she is ready for more advanced responsibilities Trainee Appraiser Tim has more than one Supervisory Appraiser. Which statement is TRUE regarding his obligation to maintain experience logs? Tim should maintain separate experience logs for each Supervisory Appraiser. Tim will not be able to use experience hours from multiple Supervisory Appraisers towards becoming licensed or certified. Tim should maintain one single experience log, and have each Supervisory Appraiser sign it annually. Tim must carry his experience log around with him at all times. - CORRECT ANSWER Tim should maintain separate experience logs for each Supervisory Appraiser. The decision to allow a Trainee Appraiser to inspect a property unsupervised should be made on _________ basis. A blanket A case-by-case An annual A quarterly - CORRECT ANSWER case by case Which statement about Trainee Appraisers and the need for Supervisory Appraiser accompaniment on inspections is TRUE? Every Trainee Appraiser will learn and progress differently. A Trainee Appraiser should be able to inspect a complex property without supervision after his or her first year. A Trainee Appraiser must pass the state licensing exam before being permitted to inspect a property unsupervised. No Trainee Appraiser should inspect a property unsupervised. - CORRECT ANSWER Every Trainee Appraiser will learn and progress differently. Which statement is TRUE regarding a Supervisory Appraiser's responsibility regarding a Trainee Appraiser's completion of the education requirements? The Supervisory Appraiser is responsible for monitoring the Trainee Appraiser's completion of the education requirements. The Supervisory Appraiser is responsible for teaching the education courses that the Trainee Appraiser is required to complete. The Supervisory Appraiser is responsible for taking the required education courses alongside the Trainee Appraiser. The Supervisory Appraiser has no responsibility to the Trainee Appraiser regarding education requirements. - CORRECT ANSWER The Supervisory Appraiser is responsible for monitoring the Trainee Appraiser's completion of the education requirements. The AQB requirements for an experience log are: Only applicable to the Certified General Appraiser classification Merely a guideline, which a jurisdiction can ignore if they wish A maximum, which cannot be exceeded by the jurisdiction A minimum, which may be exceeded by the jurisdiction - CORRECT ANSWER A minimum, which may be exceeded by the jurisdiction Who is primarily responsible for ensuring that the Trainee Appraiser learns from his or her field experience? The Supervising Appraiser only The Trainee Appraiser only The appraisal education provider The state appraisal regulatory agency - CORRECT ANSWER The Trainee Appraiser only Who is responsible for documenting a Trainee Appraiser's experience log? The Trainee Appraiser only The Supervisory Appraiser only Both the Trainee Appraiser and the Supervisory Appraiser The secretary or office manager of the appraisal firm where the trainee works - CORRECT ANSWER Both the Trainee Appraiser and the Supervisory Appraiser A Missouri licensed appraiser allows his certificate to expire. He must renew it within _______ of expiration or else it will become void. 90 days 180 days One year Two years - CORRECT ANSWER 2 years The law that created licensing and certification for appraisers in Missouri is known as: Secure and Fair Enforcement for Mortgage Licensing Act Dodd-Frank Wall Street Reform and Consumer Financial Protection Act Missouri Certified and Licensed Real Estate Appraisers and Appraisal Management Company Regulation Act Fair Housing Act of 1988 - CORRECT ANSWER Missouri Certified and Licensed Real Estate Appraisers and Appraisal Management Company Regulation Act You are reading the Missouri appraiser licensing law and you see a reference to "the Commission". What does this term refer to? The Missouri state legislature The MO Real Estate Appraisers Commission The MO Real Estate Commission The Warren Commission - CORRECT ANSWER The MO Real Estate Appraisers Commission According to the Missouri appraiser license law, which entity is empowered to perform functions and duties necessary to carry out the provisions of the license law? Bureau of Consumer Financial Protection Real Estate Appraisers Commission Appraisal Subcommittee Appraisal Standards Board - CORRECT ANSWER Real Estate Appraisers Commission An applicant for registration as a Trainee is preparing to take qualifying education courses. In order to be used for qualifying education, a course must be a minimum of ____ hours in length. 3 7 15 75 - CORRECT ANSWER 15 An applicant for registration as a Trainee Appraiser in Missouri wants to use courses he has already completed to meet the education requirement. According to the Commission, these courses must have been completed within the prior: 1 year 2 years 5 years There is no time limit for these courses - CORRECT ANSWER 5 years An applicant for a Certified General Appraiser credential is applying to the Commission in Missouri. She has accumulated 3,000 hours of non-residential appraisal experience over a period of 24 months. Which statement is true regarding the acceptability of this experience? The applicant has met the experience requirement for a Certified General credential. The applicant needs another six months of experience. The applicant needs another 500 hours of appraisal experience obtained in Missouri. Only 50% of the applicant's claimed experience hours will count towards certification. - CORRECT ANSWER The applicant has met the experience requirement for a Certified General credential. An applicant for a Certified General Appraiser credential in Missouri has accumulated 3,000 hours of appraisal experience over 18 months. Of these hours, 1,000 are in the appraisal of non-residential properties. Which statement is TRUE regarding the acceptability of this experience? The applicant has met the experience requirements for Certified General. The applicant needs another 400 hours of experience. The applicant needs another 500 hours of non-residential appraisal experience. The applicant needs another six months of experience in order to reach a total of 36 months. - CORRECT ANSWER The applicant needs another 500 hours of non-residential appraisal experience. When may an applicant for a Certified Residential Appraiser credential in Missouri take the certification examination? Before receiving his or her Trainee registration After receiving his or her Trainee registration but before completing the required college coursework After the education requirements are completed, but before the experience is accumulated After both the education and experience requirements are completed - CORRECT ANSWER After both the education and experience requirements are completed A registered Trainee is assisting a Certified General Appraiser. What type of appraisals is the Trainee permitted to assist on? Appraisals of 1-4 family residential properties only Any appraisals that the supervisory appraiser is permitted to appraise Appraisals for non-lending purposes only Appraisals for federally-regulated financial institutions only - CORRECT ANSWER Any appraisals that the supervisory appraiser is permitted to appraise A registered Trainee Appraiser in Missouri assists on an appraisal assignment but does not sign the report. Can the Trainee receive experience credit for this appraisal? Yes; because there is no requirement that the Trainee has to be mentioned or acknowledged in the report No; the Trainee must sign the certification in order to receive credit Yes; as long as the Supervisory Appraiser properly acknowledges the Trainee in the report as having provided assistance No; the supervisory appraiser should have signed the Trainee's name - CORRECT ANSWER Yes; as long as the Supervisory Appraiser properly acknowledges the Trainee in the report as having provided assistance In Missouri, who is permitted to supervise a Trainee? Any credentialed appraiser in good standing A Certified General Appraiser only A Certified Residential Appraiser only A Certified Residential Appraiser or Certified General Appraiser only - CORRECT ANSWER A Certified Residential Appraiser or Certified General Appraiser only What level of college coursework is required in order to qualify for a Certified General Appraiser credential in Missouri? Associate's degree or higher Bachelor's degree or higher Master's degree or higher 21 semester credit hours in specified topics - CORRECT ANSWER Bachelor's degree or higher An applicant for a Certified General Appraiser credential is applying to the Commission in Missouri. She has accumulated 3,000 hours of appraisal experience over 24 months. Of these hours, 1,800 hours are in non-residential property appraisal. Which statement is true regarding the acceptability of this experience? The applicant has met the experience requirement for a Certified General credential. The applicant needs another six months of experience. The applicant needs another 500 hours of appraisal experience obtained in Missouri. Only 50% of the applicant's claimed experience hours will count towards certification - CORRECT ANSWER The applicant has met the experience requirement for a Certified General credential. An appraisal that provides an estimate of value would be considered ________ under Missouri law. Illegal An analysis A consultation A valuation - CORRECT ANSWER a valuation A certified appraiser is suspended by the Missouri Real Estate Appraisers Commission in July 2017. He completes his suspension in September 2017 and is reinstated. When is the soonest that he will be permitted to supervise a Trainee? Immediately December 2019 July 2020 September 2020 - CORRECT ANSWER september 2020 A supervisory appraiser in Missouri is currently supervising two registered Trainees. How many additional Trainees may she supervise at this time? Zero One Two An unlimited number - CORRECT ANSWER 1 How many experience hours are necessary to meet the AQB minimum requirement for a Certified General Appraiser credential? 1,500 2,500 3,000 4,000 - CORRECT ANSWER 3000 A Trainee Appraiser and a Supervisory Appraiser work together on an appraisal review assignment. Which one must retain physical custody of the workfile? The Supervisory Appraiser must retain custody The Trainee Appraiser must retain custody A neutral third party must retain custody Either, but one must take responsibility - CORRECT ANSWER Either, but one must take responsibility Mary wants to become a Certified General Appraiser under the current AQB Criteria. She will need what type of degree or diploma? A high school diploma or GED An Associate degree or higher, in any field of study A Bachelor's degree or higher, in any field of study A Master's degree in Real Property Valuation - CORRECT ANSWER A Bachelor's degree or higher, in any field of study A current Trainee Appraiser wishes to take the examination to obtain a Licensed Residential Appraiser credential. When may she take the exam? Any time she wishes to take it After she has submitted an experience log with 500 creditable experience hours After she has submitted an experience log with 1,500 creditable experience hours After she completes both the education and experience requirements - CORRECT ANSWER After she completes both the education and experience requirements What does the Appraisal Subcommittee's National Complaint Hotline do? It investigates and hands down a disciplinary sanction It provides a referral for a complaint It arbitrates the complaint It puts the complainant in touch with an attorney with litigation experience - CORRECT ANSWER It provides a referral for a complaint Which statement is TRUE regarding a workfile access and retrieval agreement between a Trainee Appraiser and a Supervisory Appraiser? The agreement must be in written form. The agreement must be recorded with the state appraisal regulatory agency. The agreement must comply with the form and format specified in USPAP. The agreement may be written or oral. - CORRECT ANSWER The agreement may be written or oral. You want to be appointed to the Appraiser Qualifications Board. Who would be responsible for appointing you to this position? The Chairman of the Federal Reserve Board Appraisal Practices Board (APB) The current Chairman of the AQB The Board of Trustees (BOT) - CORRECT ANSWER BOT According to USPAP, when may a Supervisory Appraiser affix a Trainee Appraiser's signature to an appraisal report? Never, because an appraiser may not affix the signature of another appraiser If authorization is given by the Trainee Appraiser in a specific assignment If the Trainee Appraiser provides blanket signature authorization to the supervisor Always, because the Supervisory Appraiser is the Trainee Appraiser's superior - CORRECT ANSWER If authorization is given by the Trainee Appraiser in a specific assignment An appraiser receives a request for a real property appraisal, but the appraiser does not possess the competency to perform this particular assignment and does not want to acquire the competency. USPAP would require the appraiser to: Provide a Broker Price Opinion instead Give the prospective client a referral to another appraiser Decline the assignment Disclose to the client that the appraiser intends to complete the assignment without acquiring competency - CORRECT ANSWER decline the assignment A current Certified Residential Appraiser wants to become a Certified General Appraiser. According to the AQB minimum criteria, how many additional hours of appraisal education does the appraiser need in order to qualify? 75 100 150 200 - CORRECT ANSWER 100 How many registered Trainees may a supervisory appraiser in Missouri supervise at one time? An unlimited number of No more than three A minimum of four No more than five - CORRECT ANSWER no more than 3 USPAP compliance is the responsibility of whom? Individual appraisers only Appraisal companies only Individual appraisers and appraisal companies jointly Appraisers and users of appraisal services - CORRECT ANSWER individual appraisers only Who would be specifically required to comply with the AQB minimum requirements for Supervisory Appraisers? An appraiser who is supervising a Trainee Appraiser An appraiser who is supervising a Certified Residential Appraiser An appraiser who is supervising a Licensed Residential Appraiser All appraisers who have employees in their firm - CORRECT ANSWER An appraiser who is supervising a Trainee Appraiser What are the two written report options specified in Standards Rule 2-2 of USPAP? Form Appraisal Report and Narrative Appraisal Report Lending Appraisal Report and Non-Lending Appraisal Report Appraisal Report and Restricted Appraisal Report Written Appraisal Report and Oral Appraisal Report - CORRECT ANSWER Appraisal Report and Restricted Appraisal Report You believe a revision to USPAP should be made. Which Appraisal Foundation Board would you want to contact in order to communicate your idea for a revision to USPAP? Appraiser Qualifications Board (AQB) Appraisal Practices Board (APB) Appraisal Standards Board (ASB) Board of Trustees (BOT) - CORRECT ANSWER asb A Trainee Appraiser signs the letter of transmittal in an Appraisal Report, but does not sign the certification. Which of these statements is TRUE regarding the Trainee Appraiser's signature obligations under USPAP? The Trainee Appraiser must have inspected the subject property before he/she may The Trainee Appraiser is not required to sign the certification as long as he/she signs the letter of transmittal. The Trainee Appraiser must sign the certification because he has signed the letter of transmittal. A letter of transmittal is not part of an appraisal report, and therefore USPAP does not address this issue. - CORRECT ANSWER The Trainee Appraiser must sign the certification because he has signed the letter of transmittal. The requirements for reporting a real property appraisal are set forth in which USPAP Standard? STANDARD 1 STANDARD 2 STANDARD 9 STANDARD 10 - CORRECT ANSWER standard 2 Why is it essential for a Trainee Appraiser to obtain experience in all applicable valuation methodologies and approaches to value? So the Trainee Appraiser will do all the work, allowing the Supervisory Appraiser to take time off work So the Trainee Appraiser becomes capable of performing the duties of a licensed or certified appraiser In order for the Trainee Appraiser to build up a client list that he/she will take with them once they become licensed or certified In order for the Supervisory Appraiser to attend to other matters while the Trainee Appraiser works unsupervised - CORRECT ANSWER So the Trainee Appraiser becomes capable of performing the duties of a licensed or certified appraiser [Show More]

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