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Uspap Exam Questions And Answers|100%
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When an appraiser uses a hypothetical condition in an appraisal, USPAP requires the appraiser to: Clearly and conspicuously state the use of the hypothetical condition in the report Which term is defined as an assignment condition established by applicable law or regulation, which precludes an appraiser from complying with a part of USPAP? Jurisdictional exception Which of these actions would be considered significant appraisal assistance when performed by an appraiser? Research and selection of comparable sales An appraiser develops a value opinion on a single-unit dwelling and does not develop the income approach. In the Appraisal Report prepared for the assignment, the appraiser: Must state the reason for excluding the income approach According to USPAP, what is the primary reason for inspecting a property that is the subject of an appraisal? To gather information about the characteristics of a property that are relevant to its value
Robert agrees to appraise a split-level home in a town 100 miles south of his office. While he is not generally familiar with that area, Robert rationalizes: "I have appraised houses like this one for 20 years. How hard could it be?" When Robert pulls up to the house, he notices the subject is in a gated community. Robert had never appraised a property in a gated community. As Robert inspected the interior of the subject he noted several items and finishes with which he was not familiar: marble floor coverings; upscale, built-in freezers; and a wine cellar. As Robert exits the back door, he notices the subject property fronts on a river. While this river does not connect directly with the ocean, it does connect with a network of streams that do, ultimately lead to the ocean. Robert is quite concerned. He has had no experience appraising a house with some of the features he has seen; and he has never appraised wat Robert should contact the client as soon as possible and explain that he lacks the knowledge and experience to complete the assignment competently. If he feels he can obtain the required level of competency, and the client allows him, then Robert may proceed with the assignment. The SCOPE OF WORK RULE states that an appraisal or appraisal review report must contain sufficient information so that: The client and other intended users understand the scope of work performed by the appraiser
An individual is both a real estate appraiser and a kitchen designer. He has been asked to appraise a property in which he designed the kitchen one year ago. Regarding this situation, which statement is TRUE? The kitchen design service performed on the property must be disclosed. You are a certified residential appraiser, and are working with a supervising certified general appraiser on an industrial appraisal. Your supervisor is a certified general appraiser with 25 years' experience appraising shopping centers, industrial facilities, and office buildings. You and the supervisor sign the commercial reports you have been working on. While inspecting the subject property you note a patch of blackened grass behind the building. The black patch is near some overturned, open barrels. You made detailed notes and took several photos. Your report has a detailed section about your concerns.Your supervisor is concerned about your report. She told you the client, a major bank, would not be happy about a report that details dying grass. The supervisor tells you to remove that section of the report.You have trepidations, but your supervisor threatened not to work with you anymore unless you "remove t Do not sign the report because deleting the section about possible contamination will create a misleading report
A client makes several requests of an appraiser who is completing an appraisal assignment. Which of these client requests is an assignment condition as defined by USPAP? The appraiser must, at minimum, develop the sales comparison and the cost approach Which entity has final authority over USPAP and any changes to USPAP? The Appraisal Standards Board Which statement is TRUE about the effective date of an appraisal? It establishes the context of the value opinion. In order for an appraiser to use a hypothetical condition in the development of an appraisal, USPAP requires which of the following conditions to be met? The use of the hypothetical condition must result in a credible analysis Which of these would be an assignment result in a residential appraisal assignment? Site value An appraiser does not use the cost approach in the appraisal of a 100-year-old duplex dwelling. What must the appraiser include in the Appraisal Report prepared for the assignment, with regard to the exclusion of the cost approach? A statement of the reason for excluding the approach
A warning that the report may not contain supporting rationale for all of the opinions and conclusions set forth in the report Which entity sets the minimum standards for licensing and certification of appraisers which the states are required to adopt? The Appraiser Qualifications Board Jack appraised a residential dwelling located across the street from a factory that he determined is negatively affecting the value of the subject property. However, when offering the assignment, the client asked that the factory not be discussed in the appraisal report. Jack applied a location adjustment in his sales comparison approach on the comp grid but included no further discussion about the location adjustment, or the factory, in the appraisal report. Has he complied with USPAP? No, omitting the discussion could produce a misleading report. A lender has contacted an appraiser to determine the high and low sale prices in the past year that took place in the Green Hills Subdivision. No mention was made of a subject property by the lender. The appraiser supplied a list of all sales within the past year in the subdivision and billed the lender for service. The service being provided by the appraiser is Appraisal practice with no performance standards or record keeping requirements
An appraiser is performing an appraisal review on an appraisal report that was prepared by another appraiser. The appraiser is permitted by USPAP to do all of the following EXCEPT: Use data that became available after the date of the original appraisal to form an opinion of the quality of the appraiser's work In an appraisal assignment, what does the effective date establish? Whether the opinion is current, retrospective, or prospective Which of the following statements about the scope of work is TRUE? Appraisers have flexibility as well as responsibility in determining the scope of work. An appraiser is valuing a residential property for a mortgage loan and is reporting the results in an Appraisal Report. The appraiser is aware that there is another intended user in addition to the client. This intended user is a secondary mortgage market participant who will be purchasing the loan, but the appraiser does not know the name of this intended user. What is the best course of action for the appraiser to comply with USPAP? Identify the intended user by type in the report. An appraiser has developed an appraisal on a parcel of vacant land and provides an oral report of the assignment results. In providing this oral report, to the extent possible, the appraiser must:
consummation of a sale at market value on the effective date of the appraisal. What is this client requesting Exposure time What is the stated purpose of USPAP? Promote and maintain the public trust USPAP compliance is required of: Appraisers required by law, regulation, agreement or choice to be USPAP compliant Which of the following is not a requirement of a written Appraisal Report, prepared in compliance with USPAP? It must contain a copy of the deed or other type of legal description An appraiser is preparing an Appraisal Report on a residential property using a pre- printed report form created by the client. There is no space on the form for the appraiser to provide a summary of the analysis of prior sales of the subject that occurred within the prior three years. What should the appraiser do? Supplement the form with this information, using an addendum if necessary An appraiser receives a request for an appraisal assignment for a property that the appraiser had previously appraised 20 months ago. The appraiser understands that they must handle confidential information appropriately. What else must the appraiser do?
Make proper disclosure regarding the prior assignment In an appraisal of a multi-family residence, which of these would NOT be an assignment result? Building measurements An appraiser does not possess the knowledge and experience to perform an assignment, but wishes to perform the assignment anyway. Which action would NOT be required by USPAP? Inform the client after the report has been delivered about the initial lack of competency and the steps that were taken to complete it competently. According to USPAP, a/an _________ analysis is the study of the cost-benefit relationship of an economic endeavor. Feasibility An appraiser is valuing a residential property that is currently offered for sale and not yet under contract. The appraiser analyzes the subject's current listing and includes this wording in the report, "The subject is currently offered for sale for $499,900 and has been on the market for 60 days." Is this acceptable under USPAP reporting standards? No, because this is a statement of facts, and provides no summary of the appraiser's analysis
assignment conditions to include gathering the information or use an extraordinary assumption about the information. Which statement is TRUE regarding this situation? The appraiser must withdraw from the assignment. An appraiser is engaged to appraise a residence that fronts a two-lane residential street. It is public knowledge that the City Council recently voted to widen the street to four lanes next year. However, the appraiser was not familiar with the City's proposal and therefore did not consider the effects of the street widening in the appraisal. Has the appraiser violated the COMPETENCY RULE? Yes, the appraiser did not consider the relevant characteristic. The market will react today to this change in the future and the appraiser should consider this reaction and note its effect on value If an appraiser has a present or prospective interest in a property, may that appraiser perform and report an appraisal and not violate USPAP Yes, as long as the appraiser discloses the interest in the certification An appraiser has been engaged to perform an appraisal assignment on a residential property and prepare an Appraisal Report. Several days after the appraiser begins to work on the assignment, the client changes their mind and decides they want a Restricted Appraisal Report instead. How would this decision by the client regarding the report option affect the appraiser's scope of work for the assignment?
The scope of work is not affected An appraiser is valuing a property that is known to have environmental contamination, but the appraiser uses a hypothetical condition to value the property as if it was not contaminated. In the appraisal report, the appraiser clearly and accurately discloses the hypothetical condition. Does the appraiser have any other additional USPAP reporting obligations in this situation? Yes, the report must state that the use of the hypothetical condition may have affected the assignment results One of the questions an appraiser needs to answer in determining the scope of work in an appraisal assignment is How much data is needed? An appraiser has agreed to perform an appraisal assignment on a multi-unit residential property. The client has requested a Restricted Appraisal Report because a full explanation of the appraiser's support and rationale for the value opinion is not necessary. There is another intended user identified in addition to the client. In developing the appraisal, is the appraiser permitted to be less thorough than if an Appraisal Report were being prepared? No, because the appraisal development process is not affected by the report option used
assignment and takes the necessary steps to obtain competency. What other step(s), if any, must the appraiser take to comply with USPAP? Disclose in the report the initial lack of competency and the steps taken to complete the assignment competently Appraiser Alonzo has a brother, Ernesto, who referred a client to Alonzo. Alanzo thanked Ernesto, and thought nothing of it. Ernesto called Alonzo the next day and asked, "I thought if I referred a client to you, the least you could do is pay me a referral fee!" Alonzo thinks about it, and sends Ernesto a $50 gift certificate. Did Alonzo violate USPAP? No, Alonzo can pay referral fees as long as the referral is disclosed in the certification of the report An appraiser is providing a value opinion using an effective date in the past (i.e., a retrospective appraisal). When does the appraiser's competency apply? At the time of the agreement to perform the assignment An appraiser transmitted a misleading appraisal review report to the client. Which rule in USPAP has been violated? ETHICS RULE A client engages an appraiser to complete an appraisal on a residential property, and the appraiser reports the assignment results in a Restricted Appraisal Report.
Which statement is true regarding the appraiser's workfile obligations for this assignment? The data and documentation in the workfile must be sufficient to produce an Appraisal Report. An appraiser agrees to perform an appraisal for a very secretive client who insists that their identity not appear in the appraisal report. What should the appraiser do? State in the report that the client's identity has been withheld at their request, but has been retained in the workfile A subject residential house has an unusual configuration and it therefore takes the appraiser a great deal of time to measure and make the calculations to arrive at the calculations of gross living area (GLA). The appraiser's GLA figure is best described as: A physical characteristic USPAP outlines a valuation process that appraisers should employ when performing an appraisal. Which of the following is not one of the steps in this process? Identify the root causes USPAP requires that information about a property's relevant characteristics must be obtained from sources that: The appraiser reasonably believes are reliable
Harvey must have a workfile in support of his value opinion, and place a summary of his oral report in the workfile In developing an appraisal, an appraiser makes a minor error that does not affect the value conclusion. Is this a violation of USPAP? No, because competence does not require perfection Which of these is NOT an assignment element, as defined by USPAP? Letter of engagement Under USPAP, how is an assignment condition best described? An assumption, extraordinary assumption, hypothetical condition, law, rule, or other condition that affects the scope of work An appraiser is offered an appraisal assignment on a waterfront property. The appraiser does not have the knowledge and experience in appraising waterfront properties, but the appraiser still wants to perform the assignment. When is the appraiser required to disclose their lack of knowledge and experience to the client? Before agreeing to perform the assignment If an appraiser uses an acceptable scope of work in an appraisal assignment, the most likely result is: Credible assignment results An opinion of the highest and best use of a property is: A step that might be necessary in some appraisals, but not others
An appraiser is preparing a Restricted Appraisal Report in a situation in which there are other intended users in addition to the client. Which statement is TRUE regarding this situation? The appraiser must identify the other intended users by name in the report An appraiser is developing an opinion of value for an older three-unit property in a neighborhood that is in transition to single-family, owner-occupied housing. All sales of two- to four-family dwellings in the neighborhood that have sold in the past year have seen conversion to single-family, owner-occupied dwellings. The appraiser chose in the original scope of work to NOT develop the income approach and rely solely on the sales comparison approach. What else should the appraiser do with regard to this decision? Include data in the workfile and discussion in the appraisal report supporting the reasoning for excluding the income approach. An appraiser is making a personal inspection of a subject property. While at the property, the appraiser observes that the subject property has defective paint surfaces on the front porch floor and railing. This observation is: A physical characteristic What process does an appraiser use to value a universe of properties using standard methods and common data? Mass appraisal
