National Uniform Standards of Professional Appraisal Practice (USPAP), Exams of Advanced Education

Download National Uniform Standards of Professional Appraisal Practice (USPAP) and more Exams Advanced Education in PDF only on Docsity!

NATIONAL UNIFORM STANDARDS OF

PROFESSIONAL APPRAISAL PRACTICE ALL

DONE SOLUTION

Which entity is responsible for establishing education and experience requirements for licensing and certification of appraisers? - Appraiser Qualifications Board (AQB) The guidance issued by the Appraisal Practices Board is considered: - Voluntary USPAP is developed, interpreted, and amended by the: - Appraisal Standards Board (ASB) The Appraisal Standards Board (ASB) develops, interprets, and amends USPAP. Advisory Opinions are best described as - not part of USPAP, but included as reference material Which is NOT a responsibility of the Appraisal Subcommittee (ASC)? Maintaining a national registry of licensed and certified appraisers Monitoring the practices, procedures, and activities of The Appraisal Foundation Monitoring each state's appraiser licensing and certification program Developing, amending, and interpreting USPAP - Developing, amending, and interpreting USPAP Under FIRREA, USPAP is enforced by: - State appraiser licensing/certification agencies The responsibility of enforcing USPAP is provided to the individual state appraiser licensing and certification agencies. Which entity maintains the official national registry of state-certified and licensed appraisers? - Appraisal Subcommittee (ASC) The Appraisal Subcommittee maintains a registry of all licensed and certified appraisers in the United States. States submit the registry fees using funds collected from appraisers. Who is responsible for issuing credentials to individual appraisers? - State appraisal regulatory agencies State appraiser regulatory agencies are responsible for receiving and processing applications for licensure and certification, and for issuing credentials to qualified individuals.

The first step in the appraisal process is: - Identify the problem Which step in the appraisal process involves communication of the appraiser's opinions and conclusions? Receipt of fee from the client Reporting Determination of scope of work Identification of the problem - Reporting In USPAP, the appraisal process is divided into two distinct types of activity: _________ and __________. Opinion, conclusion New, old Development, reporting Analysis, appraisal - Development, reporting Currently, the boards within The Appraisal Foundation include: - Appraisal Standards Board, Appraiser Qualifications Board, Appraisal Practices Board, Board of Trustees Which independent board was created within The Appraisal Foundation in 2010? - Appraisal Practices Board (APB) Which statement is TRUE regarding The Appraisal Foundation and USPAP enforcement authority? The Appraisal Foundation may take action against individual appraisers who violate USPAP. The Appraisal Foundation does not have the authority to enforce the requirements of USPAP. The Appraisal Subcommittee provides The Appraisal Foundation with the authority to enforce USPAP. - The Appraisal Foundation does not have the authority to enforce the requirements of USPAP. The Appraisal Foundation is a private entity. TAF and its boards have no enforcement authority in any jurisdiction. A preference or inclination that precludes an appraiser's impartiality, independence, or objectivity is: - Bias An appraiser is not permitted to be ____________ when performing an appraisal. - An advocate An appraiser must be impartial and cannot advocate the cause or interest of any party or issue.

If an appraiser assumes a condition to be true that does not exist for the purposes of analysis, this is an example of: - A hypothetical condition A hypothetical condition is used to appraise a property under a condition contrary to known fact. 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: - An extraordinary assumption The terms extraordinary assumption and hypothetical condition: - Have different meanings within USPAP These two terms are often misused by appraisers and users of appraisal services. Sometimes the terms are (mistakenly) used interchangeably, but they are not the same. By using a published cost manual, an appraiser determines that the construction cost of a 2, square foot dwelling is $400,000. This figure represents the dwelling's: - Cost Cost is the amount required to create, produce, or obtain a property. Cost is a fact, or an estimate of fact. "The monetary relationship between properties and those who buy, sell or use those properties" is the definition of: - Value Which of these statements is TRUE about the USPAP definition of client? The client may engage the appraiser through an agent. The client must personally engage the appraiser. The client must be an individual, not a group or entity. - 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: - Client Who makes the identification of the intended use in an assignment? - The appraiser Which statement about intended users is TRUE? The client is always an intended user. An appraiser may retroactively add an intended user after an assignment has been completed. The client must be the only identified intended user. - The client is always an intended user. A workfile must be maintained for: - All appraisal and appraisal review assignments Which is the broader category of services?

Valuation Services Appraisal Practice - Valuation Services In USPAP, each Standard is composed of: - Standards Rules "The type and extent of research and analyses in an assignment" is the definition of ___________. - Scope of work Appraisal practice includes only: - Valuation services provided by an individual acting as an appraiser 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 valuation service A key distinction between appraisal practice and other types of valuation services is that only appraisers conduct appraisal practice. The broker is not providing this service as an appraiser; therefore, it is not part of appraisal practice. An intended user is: - A party who is identified by the appraiser based on communication with the client at the time of the assignment What is the stated purpose of USPAP? - Promote and maintain a high level of public trust in appraisal practice The PREAMBLE states that USPAP is: - For appraisers and users of appraisal services When obligated by law or regulation, an appraiser ________ comply with USPAP. - Must When obligated by law, regulation, or agreement with the client, an appraiser must comply with USPAP. To which property types does USPAP apply? - Both tangible and intangible property One of an appraiser's obligations with regard to user expectations is to: - Identify the capacity in which he or she is performing What could cause an appraiser to prepare an appraisal assignment in conformance with USPAP? - Law or regulation, agreement with the client, or voluntary choice by the appraiser Compliance with USPAP could be triggered by law, regulation, agreement with the client, or the appraiser's choice Which statement is TRUE regarding the relationship between valuation services and appraisal practice?

Valuation services is a subset of appraisal practice. Appraisal practice and valuation services have no relationship. Appraisal practice is a subset of valuation services. - Appraisal practice is a subset of valuation services. Appraisal practice is a subset of the broader concept of valuation services. An individual is ______________ provide valuation services that involve advocacy while acting as an appraiser. - Not permitted to A valuation service that is not consistent with the objectives of USPAP cannot be performed by a person acting as an appraiser. USPAP states that in a situation when an individual is not required by law, regulation, or agreement to comply with USPAP: - The individual should still comply when he or she is acting as an appraiser When performing valuation services outside of appraisal practice, appraisers must be careful not to __________ the client and other intended users about their role. - Mislead The ethical obligations of USPAP apply to: - Individual appraisers only Which statement regarding bias in an appraisal assignment is TRUE? An appraiser is never permitted to perform an assignment with bias. USPAP does not say anything about bias in an appraisal assignment. An appraiser may perform with bias as long as it is disclosed in the appraisal report. Bias is permitted as long as it benefits the client. - An appraiser is never permitted to perform an assignment with bias. In appraisal practice, advocating the cause or interest of any party or issue is: - Not permitted An appraiser has appraised a property multiple times within the prior three years. He is asked by a prospective client to appraise the property again. Which statement is TRUE? He must disclose that he provided a prior service but is not requried to disclose the number of times he has appraised the property. He must disclose the number of times he has appraised the property within the prior three years. Disclosing that he previously appraised the property is a violation of the ETHICS RULE.

The appraiser is not required to disclose that he previously appraised the property unless he feels it is important to the client. - He must disclose the number of times he has appraised the property within the prior three years. Prior to accepting an assignment, an appraiser must disclose any service he or she provided regarding the subject property for a period of _________. - Three years An appraiser has been asked to complete an appraisal assignment. The fee is to be paid when and if the loan closes. According to USPAP, may the appraiser accept the assignment under these conditions? No, the fee arrangement is an unethical contingency arrangement and violates the ETHICS RULE. Yes, as long as the appraiser clearly discloses the basis of such a contingency in the certification and in any letter of transmittal. Yes, this is a business decision between the appraiser and the client. No, unless the appraiser receives written permission allowing the transfer of the appraisal to other parties. - No, the fee arrangement is an unethical contingency arrangement and violates the ETHICS RULE. The payment of fees by the appraiser in connection with the procurement of an assignment is: - Allowed if properly disclosed Confidential information under USPAP is information the appraiser receives from: - The client and is identified as confidential, but is not available from other sources The disclosure of confidential information to a third party is unethical unless: - Authorized by the client A subject property's physical characteristics are ________ assignment results. Sometimes The same thing as Not Always - Not 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 workfile?

September 2018 September 2015 February 2014 April 2016 - April 2016 A workfile must be in existence prior to the issuance of any report. Which statement best describes the word "competency" as it relates to appraisal practice? Clients are required to be competent. It is an ideal, virtually impossible to achieve. It is fundamental to the definition of "appraiser." Lack of competency is expected by clients. - It is fundamental to the definition of "appraiser." Competency is one of the fundamental expectations inherent in 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: Refer the appraisal to an appraiser qualified to complete the assignment Disclose to the client, prior to accepting the assignment, the lack of knowledge or experience Associate with an appraiser qualified to complete the assignment Ask for more time and reduce the fee - Disclose to the client, prior to accepting the assignment, the lack of knowledge or experience Three appraisers work together on an appraisal assignment. What would NOT be an appropriate workfile arrangement under USPAP? - The workfile is posted on the Internet, so that anyone who wants to see it will be able to access it. When multiple appraisers work on an assignment, each one may maintain a separate copy of the workfile. It is also permissible for a single workfile to be created, as long as all of the appraisers who have workfile obligations are able to access it. Which statement about appraisal trainees and workfile obligations is TRUE? Trainees should follow their supervising appraiser's instructions and not worry about USPAP. Trainees have no USPAP obligations because they are not licensed or certified. Under USPAP, trainees are not permitted to keep or possess workfiles. Under USPAP, trainees have the same workfile obligations as licensed or certified appraisers. - Under USPAP, trainees have the same workfile obligations as licensed or certified appraisers. Appraisers have broad _________ and significant _________ in determining the appropriate scope of work in an assignment.

Errors, omissions Flexibility, responsibility Acceptance, liability Boundaries, limitations - Flexibility, responsibility In order to determine the appropriate scope of work, the appraiser must ________ the problem to be solved. Solve Accept Value Identify - Identify The credibility of assignment results is measured in the context of: - The intended use Identification of the intended use of an appraiser's opinions and conclusions is: - Necessary for determining the appropriate scope of work Examples of assignment conditions could include: (select the most complete answer) All of these answers Extraordinary assumptions Laws and regulations Hypothetical conditions - All of these answers Intended use is: - Identified by the appraiser on the basis of communication with the client Determining the scope of work requires: Information obtained through communication with the client The appraiser to advocate for the client No input or information from the client or anyone else - Information obtained through communication with the client Communication with the client is required to establish most of the information necessary for the scope of work decision. Exclusion of a valuation approach that is not applicable in a given assignment is an example of: An unethical act by an appraiser A scope of work decision A non-credible appraisal - A scope of work decision The responsibility for the scope of work decision rests with the:

Client Intended users Appraiser's peers Appraiser - Appraiser In an assignment, the scope of work is an ___________ process. - Ongoing An appraiser must not allow client objectives to cause the assignment results to be: Independent Biased Objective Impartial - Biased An appraiser's report must contain ____________ to allow intended users to understand the scope of work performed. - Sufficient information If a client's objectives result in an appraiser developing biased assignment results: - The appraiser is solely responsible Scope of work has no disclosure requirements. False True - False In reporting the scope of work under USPAP: - 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: - 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: - Scope of work decision What is the purpose of the JURISDICTIONAL EXCEPTION RULE? To allow USPAP to preempt existing laws and regulations To provide state appraisal regulatory agencies additional enforcement powers To allow attorneys to appraise real property without a state license or certification.

To preserve the balance of USPAP if compliance with a part of USPAP is precluded by law or regulation - To preserve the balance of USPAP if compliance with a part of USPAP is precluded by law or regulation When a law or regulation precludes compliance with any part of USPAP, appraisers must: - Comply with that law or regulation If an assignment involves a jurisdictional exception, what must an appraiser do? - 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 As used in the JURISDICTIONAL EXCEPTION RULE, the term "law" includes ____________. - Constitutions, legislative and court-made law, and administrative rules and ordinances If a law or regulation precludes an appraiser with complying with a part of USPAP: - A jurisdictional exception is automatically created Appraisers cannot be expected to be aware of all of the laws and regulations that apply to a particular assignment. True False - False When does a jurisdictional exception occur in an assignment? - It is automatic when a law precludes compliance with a part of USPAP A state passes a law requiring appraisers to keep their workfiles for 10 years after preparation of the report. Would this be a jurisdictional exception under USPAP? Yes No Cannot determine from the information provided - No Which of these is an example of a jurisdictional exception in an appraisal assignment? An attorney asking an appraiser not to analyze the prior sales history of the subject property A client requesting a specific definition of value State regulations requiring appraisers to keep workfiles for six years A probate court paying appraisers based on the value of the subject property - A probate court paying appraisers based on the value of the subject property A probate court paying an appraiser based on the value of the property would be a jurisdictional exception, because it would preclude an appraiser from complying with part of the Management section of the ETHICS RULE. The other examples would not be jurisdictional

exceptions because they would not preclude an appraiser from complying with a part of USPAP. Instructions from an attorney cannot be used as the basis for a jurisdictional exception. The requirements of STANDARD 1 can be used as a checklist by an appraiser who is developing a real property appraisal. True False - True Which statement is FALSE regarding STANDARD 1? It mirrors the appraisal process. It contains six Standards Rules. It covers real and personal property appraisal development. It can be used as a checklist for proper development. - It covers real and personal property appraisal development. STANDARD 1 requires an appraiser to ____________ in developing a real property appraisal. - Use due diligence and due care When does a series of minor errors potentially result in a USPAP violation? When the errors were made by a trainee assisting the appraiser When the client has to request corrections from the appraiser after the report has been completed When there are more than 3 such errors in the report When the series of errors affects the credibility of the results - When the series of errors affects the credibility of the results Exposure time is: - Always assumed to precede the effective date of the appraisal Exposure time is always assumed to occur prior to the effective date of the appraisal. When is identification of the intended use of an appraiser's opinions and conclusions necessary in an appraisal assignment? Only in mortgage lending appraisal assignments Only when the client states it is important It is necessary in all appraisal assignments - It is necessary in all appraisal assignments If a borrower receives a copy of an appraisal report from a mortgage lender as a result of disclosure requirements: - This does not make the borrower an intended user Parties who receive a copy of an appraisal, appraisal review, or appraisal consulting report as a consequence of disclosure requirements applicable to an appraiser's client do not become

intended users of the report unless they were specifically identified by the appraiser at the time of the assignment. What should an appraiser do if, during the course of an assignment, he or she becomes aware of a change in the intended use of the report? Withdraw from the assignment Finish the report under the original intended use and modify it later Consider whether the extent of the planned development process and report are still appropriate Go out and make a re-inspection of the subject property - Consider whether the extent of the planned development process and report are still appropriate If a client wishes to remain anonymous, the appraiser must: - Document the client's identity in the workfile and state in the report that the client's identity has been withheld at the client's request What is the primary purpose of an appraiser making an inspection of the subject property? To meet the USPAP requirement that all subject properties be inspected All of the answers listed To prove to the client that the appraiser knows the property To collect information about characteristics that are relevant to value - To collect information about characteristics that are relevant to value AO-2 advises that the primary purpose of a property inspection is to collect information about the characteristics of the subject property that are relevant to its value. USPAP does not require that the subject property be inspected. When appraising proposed improvements, what type of appraisal is permitted by USPAP? (Select the most complete answer.) Both current and prospective Prospective only Current only - Both current and prospective Both current and prospective value appraisals subject to completion of proposed improvements to real property are permitted under USPAP. An example of a relevant property characteristic that could affect a real property appraisal assignment would be: The amount of time that is given for the appraiser to complete the assignment

The type of report requested by the client The fact that the appraisal report is going to be used in litigation. The fact that the subject property is affected by an easement - The fact that the subject property is affected by an easement Which of these would be an acceptable source an appraiser would use to obtain the relevant physical characteristics of the subject real property in an appraisal assignment? (Select the most complete answer.) Any or all of these sources would be acceptable Personal inspection of the subject property A legal description recorded in public records Copy of a survey by a professional engineer - Any or all of these sources would be acceptable An extraordinary assumption may be used in an assignment only if: Required to develop credible results Accompanied - Required to develop credible results When an appraiser provides a current value opinion on a proposed new building, he or she is utilizing a(an) _____________ that the proposed improvements are completed as of the effective date of the appraisal. - Hypothetical condition Development of a value opinion(s) for a subject property with proposed improvements in a current value appraisal involves at least one hypothetical condition, specifically that the described improvements have been completed as of the date of value. Select the most complete answer. An unacceptable assignment condition would be a condition that: All of the answers listed would be unacceptable assignment conditions Precludes an appraiser's impartiality Limits report content, resulting in a misleading report Limits the scope of work to the extent that the value opinion is not credible - All of the answers listed would be unacceptable assignment conditions An appraiser performs a research assignment, in which the appraiser completes research for a client but does not develop any opinions or conclusions. Which statement is TRUE regarding this assignment? It is an appraisal review. It is a valuation service, but is not part of appraisal practice. It is an appraisal. This is not an appraisal, but it is part of appraisal practice. - This is not an appraisal, but it is part of appraisal practice. Which statement is TRUE regarding USPAP and the three approaches to value?

USPAP requires that at least two of the three approaches be developed in every appraisal assignment. An appraiser must develop all three approaches to value in every appraisal assignment. USPAP requires specific methodology for developing the cost and income approaches, but not the sales comparison approach. An assignment condition may require an appraiser to develop an approach that he or she would otherwise consider unnecessary. - An assignment condition may require an appraiser to develop an approach that he or she would otherwise consider unnecessary. When developing a sales comparison approach under USPAP: The appraiser must analyze such data as are available to indicate a value conclusion The appraiser must use the methods and techniques that USPAP requires him/her to use Guidelines for time and distance specified by SR 1-4 must be followed The appraiser must consider at least three comparable sales - The appraiser must analyze such data as are available to indicate a value conclusion USPAP only requires that an appraiser analyze such comparable sales data as are available to indicate a value conclusion. When analyzing listings of the subject property in a real property appraisal assignment, USPAP requires an appraiser to analyze, at a minimum, ____________. Current listings All listings that occurred within the last year Any future listings that will occur within the next year All listings that occurred within the last three years - Current listings Standards Rule 1-5(a) requires appraisers to analyze current listings and agreements. Analyzing prior listings may be an assignment condition specified by certain clients, but it is not specifically required by USPAP. When analyzing the subject property's sales history in a real property appraisal assignment, an appraiser is required by USPAP to analyze ______________. All sales and transfers of the subject and comparables within the prior ten years All sales of the subject property that occurred within three years prior to the effective date of the appraisal Only the most recent sale of the subject property, if it occurred within the prior three years The most recent sale of the subject property, regardless of when it occurred - All sales of the subject property that occurred within three years prior to the effective date of the appraisal

USPAP Standards Rule 1-5(b) requires analysis of a three-year subject property sales/transfer history prior to the effective date. If an appraiser is asked to appraise a property on which there is a known, current agreement of sale, the agreement must be: - Analyzed in the appraisal When is it necessary to analyze prior listings of the subject property in a real property appraisal assignment? - When such analysis is relevant to the current assignment The process of reconciliation entails ___________. Careful consideration of the quality and quantity of data Complying with a client's request to find additional comparable sales that support the appraiser's opinion of value Averaging the indicated values to arrive at a final value opinion Changing the adjustments to bring the indicated values into a tighter range - Careful consideration of the quality and quantity of data Standards Rule 1-6 requires the appraiser to reconcile the quality and quantity of the data within the approaches, as well as the applicability and relevance of the approaches themselves. Standards Rule 1-5 requires an appraiser to analyze the sales history of the comparable sales. True False - False The use of standard appraisal reporting forms: Is mandated by STANDARD 2 Requires approval by the ASB and AQB Is prohibited by USPAP Is not required by STANDARD 2 - Is not required by STANDARD 2 STANDARD 2 sets forth requirements for: - Appraisal report content The written report options set forth in Standards Rule 2-2 are Appraisal Report and Restricted Appraisal Report Appraisal Report and Limited Appraisal Report Paper Appraisal Report and Electronic Appraisal Report Form Report and Narrative Report - Appraisal Report and Restricted Appraisal Report What is the essential difference between the two written report options? A Restricted Appraisal Report does not require the appraiser to maintain a workfile In a form report, there are no USPAP requirements The level of detail and information The report form and format prescribed by USPAP - The level of detail and information

What is the importance of stating the date of the report? - It establishes the appraiser's perspective on the market Which of the following is NOT required by USPAP to be in an Appraisal Report? Effective date of appraisal Client's specific name Type and definition of value Name or type of other intended users - Client's specific name The client's specific name is not required to be in an Appraisal Report. If the client wishes to remain anonymous, the appraiser may omit the client's name(s) from the report, but must have the client's name(s) in his or her workfile. When reporting the results of an appraisal, the two dates that must be included are: Effective date and report date Effective date and inspection date Inspection date and assignment date Inspection date and report date - Effective date and report date In a Restricted Appraisal Report, the exclusion of any of the valuation approaches must be: stated explained permitted by the client omitted - Explained In an Appraisal Report, the scope of work used to develop the appraisal must be: described stated summarized omitted - Summarized In an Appraisal Report, the scope of work used to develop the appraisal must be summarized. When an extraordinary assumption is used in an appraisal, the report must state the extraordinary assumption and: also value the property without the extraordinary assumption state that it lowers the credibility of the value opinion provide proof of client approval for the extraordinary assumption state that its use may have affected the assignment results - state that its use may have affected the assignment results Compared to a value opinion expressed in an Appraisal Report, a value opinion expressed in a Restricted Appraisal Report is:

more reliable less credible equally credible less reliable - equally credible A properly-developed value opinion reported in a Restricted Appraisal Report is just as credible as the value opinion reported in an Appraisal Report In an appraisal assignment, an appraiser identifies an additional intended user in addition to the client. Does USPAP permit the appraiser to provide a Restricted Appraisal Report in this assignment? USPAP does not address this issue Yes No - No According to USPAP, any appraiser who signs any part of an appraisal report is required to: read the report sign the letter of transmittal sign the certification inspect the property - sign the certification What is the purpose of including a signed certification in an appraisal report? Because it is required by Fannie Mae To certify that the appraiser was of sound mind To prove that an actual written report was provided by the appraiser For the appraiser to acknowledge his or her ethical obligations - For the appraiser to acknowledge his or her ethical obligations Does USPAP require an appraiser to disclose any significant real property appraisal assistance that was provided in an appraisal assignment? Maybe, it depends on whether or not the person providing the assistance is licensed or certified No, never Yes, in all cases - Yes, in all cases An appraiser provides an oral report of a real property appraisal assignment. Which statement is CORRECT? The appraiser has no USPAP reporting obligations. Because she gave an oral report, the appraiser does not have to sign a certification statement. The appraiser must send a written, signed, and dated certification statement to the client after she provides the oral report. The appraiser must add a signed and dated certification to her appraisal workfile. - The appraiser must add a signed and dated certification to her appraisal workfile.

A written summary of an oral appraisal report must be added to the appraiser's workfile ______________ the issuance of an oral report. Before Within 180 days subsequent to On the same day as Within a reasonable time - Within a reasonable time To the extent possible and appropriate, oral appraisal reports for real property must address the substantive matters that apply to a(n) Appraisal Report Restricted Appraisal Report Limited Appraisal Report Appraisal Review Report - Appraisal Report An appraiser completes an appraisal for Bank A. Two months later, he is contacted Bank B, who asks him to "readdress" his prior report to them. Which statement is TRUE about the appraiser's USPAP obligations? He can "readdress" the report if he obtains permission from Bank A He is not permitted to do a new appraisal for Bank B because he appraised the same property for Bank A within the last three years He can "readdress" the report only if the value and/or market conditions have not changed He is not permitted to "readdress" the report to Bank B - He is not permitted to "readdress" the report to Bank B Once a report has been prepared for a named client(s) and any other intended users and for an identified intended use, the appraiser cannot "readdress" (transfer) the report to another party. USPAP requires an appraiser to obtain a release from a previous client before appraising the same property for a new client. False True - False As a matter of business practice, some appraisers request a release from a prior client before accepting an assignment to appraise the same property for a new client, however USPAP does not require this. Which statement is TRUE regarding a Recertification of Value? It changes the effective date of the value to a current date. It does not change the effective date of the value. It changes the effective date of the value to a prospective (future) date. - It does not change the effective date of the value.

If a client requests a more current valuation on a property that was the subject of a prior assignment, this is a(n) ____________. new assignment consulting assignment recertification of value extension of a prior assignment - New assignment If a supervising appraiser makes changes to a trainee's appraisal report which the trainee does not agree with, the trainee should: sign the report using another appraiser's name sign the certification because the supervisor knows best give the supervisor blanket permission to sign all reports for him not sign the certification - not sign the certification The client must be the only intended user for: Appraisal Review Reports Restricted Appraisal Reports Appraisal Reports Oral Appraisal Reports - Restricted Appraisal Reports A Restricted Appraisal Report is intended only for situations when the client is the only intended user of the assignment results. 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. supporting, defending expressing, critiquing developing, communicating reporting, supporting - developing, communicating A major difference between the Standards for real property appraisal and appraisal review is that: There are no differences; the Standards are interchangeable The real property appraisal Standards are "paired", but there is only one Standard that addresses appraisal review The appraisal review Standard applies only to licensed and certified appraisers The Standards for appraisal appear in USPAP, while the Standards for appraisal review are included within the Advisory Opinions - The real property appraisal Standards are "paired", but there is only one Standard that addresses appraisal review

STANDARDS 1 and 2 are paired. STANDARD 1 sets performance standards for development of a real property appraisal and STANDARD 2 sets performance standards for reporting a real property appraisal. However, STANDARD 3 is not paired with another Standard; it establishes both development and reporting requirements for appraisal review assignments. A reviewer is required to identify the appraiser who completed the work under review, unless: The reviewer wants to protect the appraiser's identity to shield him or her from liability The identity has been withheld by the client The review is being performed for litigation purposes. The reviewer has a bias against the appraiser who performed the work under review - The identity has been withheld by the client 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. an appraisal review only an appraisal only either an appraisal or an appraisal review a broker price opinion - either an appraisal or an appraisal review A review appraiser may use additional information that was not available to the original appraiser as long as the information: supports the data in the appraisal report under review is not used as the basis to discredit the original appraiser's value opinion is not used in a review that includes the reviewer's own opinion of value discredits the data in the appraisal report under review - is not used as the basis to discredit the original appraiser's value opinion Does USPAP permit a reviewer to use an extraordinary assumption in a review assignment? No USPAP does not address this issue Yes - Yes Which statement is TRUE regarding USPAP and the appraisal review process for real property? A reviewer is required to develop his or her own opinion of value if the reviewer feels the original value is not credible.

If the reviewer develops his or her own opinion of value, it must be developed under the requirements of STANDARD 1. 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. In reviewing an appraisal, the reviewer is prohibited from developing or expressing an opinion of value. - If the reviewer develops his or her own opinion of value, it must be developed under the requirements of STANDARD 1. Appraisers may provide their own opinions as part of a review assignment. These opinions must be developed under the STANDARD that is applicable to the type of assignment. In reviewing a real property appraisal, the reviewer would develop his own opinion of value under the requirements of STANDARD 1. Consistent with the reviewer's scope of work, a reviewer must develop an opinion regarding: (Select the most complete answer.) The completeness, accuracy, and reasonableness of the work under review The professional qualifications of the appraiser who completed the work under review Both of these - The completeness, accuracy, and reasonableness of the work under review The Comment to Standards Rule 3-3(a) states that consistent with the reviewer's scope of work, the reviewer is required to develop an opinion as to the completeness, accuracy, adequacy, relevance, and reasonableness of the analysis in the work under review. Development of an opinion of the qualifications of the appraiser is not required by USPAP. An appraisal review can be a two-stage assignment; an appraisal review and a value opinion by the reviewer. False True - True A reviewer has been requested to also develop her own value opinion in a review assignment. Which statement is TRUE regarding this situation? The reviewer must use the same scope of work as the original appraiser. The reviewer may use a different scope of work than the original appraiser. The reviewer is prohibited from developing her own value opinion as part of a review assignment. The reviewer must use the same comparable sales as the original appraiser. - The reviewer may use a different scope of work than the original appraiser. An appraisal review report: must be written has no minimum content requirements under USPAP must be separate from the work under review must be prepared using a pre-printed report form - must be separate from the work under review

If a client withholds the identity of the appraiser who completed the work under review, the reviewer: must state this fact in the review report must withdraw from the assignment may complete the assignment, but must use an extraordinary assumption to assume the appraiser is licensed or certified may not develop his or her own opinion of value - must state this fact in the review report If the identity of the appraiser(s) in the work under review is withheld by the client, that fact must be stated in the appraisal review report. A reviewer is responsible for ensuring that there is __________ in a review report so that it can be properly understood by __________. Sufficient information; intended users Meaningful analysis; anyone Credible data; anyone Current information; intended users - Sufficient information; intended users Under certain circumstances, a reviewer may use information that was not available to the original appraiser to impugn the work under review. True False - False Information that was not available to the original appraiser in the normal course of business may be used by the reviewer; however, the reviewer must not use such information in the reviewer's development of an opinion as to the quality of the work under review. A reviewer performing an appraisal review must not sign the work under review unless he or she: Intends to accept the responsibility as a co-signer of the work Has sufficient E&O insurance to indemnify the client against loss Knows the appraiser who performed the work under review Agrees with its conclusions - Intends to accept the responsibility as a co-signer of the work If a reviewer provides an oral report of an appraisal review: - 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. Did Did not - Did not

"The value opinion stated in the appraisal report is (or is not) adequately supported" is provided in AO-20 as language that does not indicate a reviewer developed his/her own value opinion. 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: the appraiser would violated USPAP by accepting the assignment the appraiser must prepare a written report this is a two-stage assignment this is an appraisal consulting assignment - this is a two-stage assignment A client may want the reviewer to develop and report his or her own opinion of value (an appraisal) within an appraisal review assignment. In this instance, the appraisal review assignment is actually a two-stage assignment, an appraisal review plus a value opinion by the reviewer. Which of these examples indicates that a reviewer DID NOT develop his own opinion of value in an appraisal review assignment? I concur with the value conclusion. I do not agree with the value conclusion. I reject the value conclusion as lacking credibility due to the errors and inconsistencies found. In my opinion, the value conclusion is too high. - I reject the value conclusion as lacking credibility due to the errors and inconsistencies found. "I reject the value conclusion as lacking credibility due to the errors and inconsistencies found" is provided in AO-20 as language that does not indicate a reviewer developed his/her own value opinion. The other choices are listed in AO-20 as examples of language that indicate that the reviewer did develop his/her own value opinion. STANDARD 6, Mass Appraisal, applies to: - Both real and personal property STANDARD 6 is most similar in structure to: - STANDARD 3 Notifications sent to property owners of the results of a mass appraisal, which may be required by public policy, are considered: Violations of the ETHICS RULE of USPAP Reports under STANDARD 6 Notifications, and not reports Reports under STANDARD 2 - Notifications, and not reports 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? STANDARDS 7 and 8

STANDARD 6

STANDARDS 4 and 5 STANDARDS 1 and 2 - STANDARDS 1 and 2 If the subject of an ad valorem taxation appraisal assignment is a single piece of real property, this is an appraisal assignment which must be developed and reported under STANDARDS 1 and

In a written mass appraisal report prepared under STANDARD 6, what is the purpose of a signed certification? - 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 reasonable and applicable time One year Three years Five years - A reasonable and applicable time In appraising personal property, the appraiser must also analyze prior sales but, unlike SR 1- 5 (real property), there is no minimum time period specified. SR 7-5 requires the analysis of prior sales that occurred within a reasonable and applicable time period, if relevant given the intended use of the appraisal and property type In a personal property appraisal assignment that includes multiple objects as part of the same assignment: All objects must be given the same focus regardless of their value or significance All objects must have the same value An appraiser must be licensed or certified as a personal property appraiser in order to complete the assignment The objects that are more significant to the assignment results should be the focus of the analysis - The objects that are more significant to the assignment results should be the focus of the analysis Personal property appraisals frequently involve multiple objects in a single appraisal assignment, and the value significance of these objects can vary greatly. Standards Rule 7-4(e) specifies that objects which are more significant to the assignment results should be the focus of the analysis. An appraiser must recognize that there are distinct levels of trade in personal property, and each may have different comparable data. True False - True

Which of the following reports require a signed certification? - All oral and written reports covered in USPAP Under STANDARD 8, a personal property appraiser has ____ written report options. STANDARD 8 does not establish written report options two three four - two A written business appraisal report must be prepared in accordance with which of the following options? Self-Contained Appraisal Report or Summary Appraisal Report Appraisal Report or Restricted Appraisal Report Appraisal Report or Business Appraisal Report Written Appraisal Report or Electronic Appraisal Report - Appraisal Report or Restricted Appraisal Report When reporting the results of a business appraisal, which of these is NOT a permissible option for an appraiser? Limited Report Restricted Appraisal Report Oral report Appraisal Report - Limited Report The requirements of Standards Rule 10-4 regarding oral appraisal reports are similar to the requirements of Standards Rule 2-4 for real property appraisers. The same two written report options (Appraisal Report and Restricted Appraisal Report) are used in business appraisal, personal property appraisal, and real property appraisal. An appraiser's certification in a business or intangible asset appraisal report does NOT: State that the appraiser has prepared and reported the analysis in conformity with USPAP Contain a reference to the inspection of the subject property State that the appraiser has no bias - Contain a reference to the inspection of the subject property The certification required by STANDARD 10 contains no reference to a personal inspection of the property, as one cannot inspect intangible assets. How many active Statements on Appraisal Standards are currently in USPAP? Five Three Zero Seven - Zero