USPAP PRACTICE EXAM

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Prior to accepting an assignment or entering into an agreement to perform any assignment, the appraiser must have the knowledge and experience to complete the assignment or the appraiser must:

Disclose the lack of knowledge and/or experience to the client before accepting the assignment

Take all steps necessary or appropriate to complete the assignment competently

Describe the lack of knowledge and/or experience and the steps taken to complete the assignment competently in the report.

All of the above (correct)

The appraiser should retain his/her records for an appraisal for at least:

2 Years

5 Years (correct)

7 Years

10 Years

The act or process of developing an opinion of value or an opinion of value developed without invoking the DEPARTURE RULE is considered:

A Limited Appraisal

A Complete Appraisal (correct)

A Summary Appraisal

A Restricted Appraisal

The act or process of developing an opinion of value or an opinion of value developed under and resulting from invoking the DEPARTURE RULE is considered:

A Limited Appraisal Signup and view all the answers

Which of the following are typically considered legally competent to conclude that there has been a violation of USPAP?

A state licensing/certification agency Signup and view all the answers

Review appraisers can only conclude and report that the appraisal report under review:

All of the above. Signup and view all the answers

A current version of USPAP contains ten Statements on Appraisal Standards (3 of which are retired), which have _____of / than a 'Standards' Rule.

Full Weight Signup and view all the answers

USPAP contains a Preamble, 5 rules, definitions, and ____ Standards.

10 Signup and view all the answers

The following is true about Advisory Opinions

The Advisory Opinions are not part of USPAP, however are sometimes included for convenience of reference. They do not have the same status as Statements on Appraisal Standards. Signup and view all the answers

Which of the following does not comply with USPAP and should be eliminated from appraisal practice.

Letter Opinion of Value Signup and view all the answers

The following is performed to confirm whether or not the conditions of an appraisal have been met. This will not change the effective date of the value opinion.

Recertification of Value Signup and view all the answers

Which of the following develops, publishes, interprets and amends the Uniform Standards of Professional Appraisal Practice (USPAP)?

ASB Signup and view all the answers

Record Keeping is a section of which of the following USPAP rules?

Ethics Rule Signup and view all the answers

According to USPAP, an assumption, directly related to a specific assignment, which, if found to be false, could alter the appraisers opinions or conclusions is the definition of a:

Extraordinary Assumption Signup and view all the answers

The USPAP now identifies two types of appraisal assignments. They are;

Complete and Limited Signup and view all the answers

An appraiser typically uses how many approaches to analyze the value of a property?

Three Signup and view all the answers

All or part of a Standards Rule of USPAP from which departure is not permitted are considered:

Binding Requirements Signup and view all the answers

According to USPAP, Departure applies to:

Development of an assignment Signup and view all the answers

If an appraisal is completed by one appraiser, yet signed by a review appraiser as well, who is responsible for the appraisal?

Both A and B Signup and view all the answers

The term 'Client' is defined in the definitions section of USPAP as:

The party or parties who engage an appraiser in a specific assignment. Signup and view all the answers

The interests, benefits, and rights inherent in the ownership of real estate is defined as:

Real Property Signup and view all the answers

The definition of 'Real Estate' is:

An identified parcel of land, including improvements, if any. Signup and view all the answers

The appraiser must recognize that land is appraised as:

All of the above Signup and view all the answers

In developing a real property appraisal, when the value opinion to be developed is market value, an appraiser must analyze any prior sale of the subject property that occurred within the following minimum time periods:

Three years for all property types Signup and view all the answers

When applicable, the appraiser must consider and analyze the cash flow return(s) and reversion(s) to the specified investment position over a projected time period(s), when performing:

Cash flow and/or investment analysis Signup and view all the answers

When can a review appraiser form an opinion of value different from that in the report being reviewed.

The Opinion of value may be set forth in the review appraisal report, provided that they comply with Standards 3-2. Signup and view all the answers

A Retrospective appraisal is:

When the effective date of the appraisal is prior to the date of the report. Signup and view all the answers

Study Notes

Appraiser Qualifications and Responsibilities

Appraisers must possess knowledge and experience to complete assignments or must have mechanisms in place to acquire them.
Appraisal records must be retained for a minimum period, typically five years after the assignment's completion.

Appraisal Process and Rules

Developing an opinion of value without invoking the Departure Rule is considered a standard appraisal.
Invoking the Departure Rule leads to a different opinion of value, allowing for flexibility in following USPAP guidelines.

USPAP Compliance and Review

Review appraisers can only conclude and report on compliance based on the appraisal report they review.
The current USPAP version includes ten Statements on Appraisal Standards, with retired standards noted; these statements offer directives rather than being strictly classified as 'Standards.'

Advisory Opinions and Compliance

Advisory Opinions provide guidance on USPAP but do not enforce compliance.
Practices violating USPAP should be removed to maintain appraisal integrity.

Conditions and Legality

Verification of conditions met in an appraisal does not alter the effective date of the value opinion.
The Appraisal Standards Board develops, publishes, and amends USPAP.

Record Keeping and Assumptions

Record Keeping falls under specific USPAP rules meant to ensure proper documentation.
An assumption that could alter the appraiser’s conclusions if proven false is considered a critical element in the appraisal process.

Types of Assignments

USPAP identifies two types of appraisal assignments, each requiring distinct approaches and considerations.
An appraiser typically utilizes three approaches to analyze property value.

Departure and Accountability

All parts of a Standards Rule from which departure is not permitted are binding and must be adhered to in the appraisal.
Departure applies specifically to circumstances allowing modification of appraisal methodologies.

Responsibility and Definitions

If an appraisal is performed by one appraiser and signed off by a review appraiser, the original appraiser is responsible for the appraisal.
The term 'Client' in USPAP refers to the party engaging the appraiser.
Real estate ownership encompasses the interests, benefits, and rights inherent to the property.

Real Estate Characteristics

'Real Estate' encompasses not only the land but also any permanent structures on it.
Land is appraised considering its highest and best use according to market analysis.

Market Value and Historical Analysis

For market value appraisals, analysis of prior sales within a minimum time frame (commonly three years) is mandatory.
When applicable, appraisal includes analyzing projected cash flow returns and investment reversions.

Review Appraisals and Retrospectives

A review appraiser can form a differing opinion of value based on additional analysis or information beyond the reviewed report.
A retrospective appraisal assesses the value of a property at a past date, often accommodating specific analytical needs.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.