The Appraisal Foundation and USPAP, Exams of Nursing

Download The Appraisal Foundation and USPAP and more Exams Nursing in PDF only on Docsity! USPAP Final Exam questions with complete solutions The Appraisal Foundation has the authority to enforce the requirements of USPAP. - correct answer ✔✔False; The Appraisal Foundation is a private entity. The Foundation and its boards have no enforcement authority in any jurisdiction. Which Foundation board is responsible for USPAP? - correct answer ✔✔Appraisal Standards Board (ASB) Currently, the boards within The Appraisal Foundation include: - correct answer ✔✔Appraisal Standards Board, Appraiser Qualifications Board, Board of Trustees Which entity is responsible for establishing education and experience requirements for licensing and certification of appraisers? - correct answer ✔✔Appraiser Qualifications Board (AQB) Which entity appoints members of the AQB and ASB? - correct answer ✔✔Board of Trustees (BOT) Qualification criteria for appraiser certification and recertification are disseminated to state appraisal boards by the: - correct answer ✔✔Appraiser Qualifications Board (AQB) Advisory Opinions are best described as - correct answer ✔✔not part of USPAP, but included as reference material USPAP is written, amended, and interpreted by the: - correct answer ✔✔Appraisal Standards Board (ASB) USPAP is enforced by: - correct answer ✔✔State appraiser licensing/certification agencies Which is NOT a responsibility of the Appraisal Subcommittee (ASC)? - correct answer ✔✔Writing, interpreting, and amending USPAP WRONG Answers: Monitoring the practices, procedures, and activities of The Appraisal Foundation, Maintaining a National Registry of licensed and certified appraisers, Overseeing each state's appraiser licensing and certification program are handled by the ASC Which entity maintains the official National Registry of state-certified and licensed appraisers? - correct answer ✔✔Appraisal Subcommittee (ASC) Who is responsible for issuing credentials to individual appraisers? - correct answer ✔✔State appraisal regulatory agencies Why are USPAP Advisory Opinions issued? - correct answer ✔✔To offer advice Which of these is considered an integral part of USPAP and has the same weight as the components they address? - correct answer ✔✔Comments Which part of USPAP establishes the requirements for workfile content for an appraisal or appraisal review assignment? - correct answer ✔✔RECORD KEEPING RULE In USPAP, the appraisal process is divided into two distinct types of activity: _________ and __________. - correct answer ✔✔Development, reporting The first step in the appraisal process is: - correct answer ✔✔Identify the problem Which step in the appraisal process involves communication of the appraiser's opinions and conclusions? - correct answer ✔✔Reporting To which property types does USPAP apply? - correct answer ✔✔Both tangible and intangible property What is the stated purpose of USPAP? - correct answer ✔✔Promote and maintain a high level of public trust in appraisal practice Appraisal practice includes only: - correct answer ✔✔Valuation services provided by an individual acting as an appraiser In USPAP, each Standard is composed of: - correct answer ✔✔Standards Rules "The type and extent of research and analyses in an appraisal or appraisal review assignment" is the definition of ___________. - correct answer ✔✔Scope of Work In appraisal practice, advocating the cause or interest of any party or issue is: - correct answer ✔✔Not permitted The ethical obligations of USPAP apply to: - correct answer ✔✔Individual appraisers Bias is permitted in an appraisal as long as the bias is clearly disclosed in the report. - correct answer ✔✔False An appraiser is disclosing to a client the fact that she had previously appraised the subject property within the prior three years. When making this disclosure, the appraiser must be careful to: - correct answer ✔✔Not disclose confidential information from the previous assignment An appraiser must disclose any service he or she provided regarding the subject property for a period of _________ prior to agreeing to perform the assignment. - correct answer ✔✔Three years In a real property appraisal assignment prepared for a mortgage lender, an appraiser is permitted by USPAP to base his compensation for an appraisal assignment on: - correct answer ✔✔Whether or not the report is transmitted to the client by the due date An appraiser has been asked to complete an appraisal assignment. The fee is to be paid only if the loan closes. According to USPAP, may the appraiser accept the assignment under these conditions? - correct answer ✔✔No, the fee arrangement is an unethical contingency arrangement and violates the ETHICS RULE. In most cases, an appraiser may share __________ from an appraisal assignment with other appraisers without obtaining the client's consent. - correct answer ✔✔Physical characteristics An appraiser concludes that a subject property has functional inadequacies. This conclusion is: - correct answer ✔✔An assignment result and must be treated as confidential The Confidentiality section of the ETHICS RULE prohibits an appraiser from disclosing confidential information or _________ to unauthorized parties. - correct answer ✔✔Assignment results An appraiser completes an appraisal and transmits the report to the client. The report copy retained in the appraiser's workfile does not have a signature affixed to it. Is this permissible under USPAP? - correct answer ✔✔No, a true copy must include a signature Is an appraiser permitted by USPAP to create a workfile after transmitting the report to the client? - correct answer ✔✔No An appraiser prepared an appraisal report in April 2019. He testified in court regarding the value of the property in January 2020. The decision was rendered in February 2020 and was appealed in April 2020. The appellate court heard the case in January 2021 and remanded the case for reconsideration by the lower court. Final disposition of the case occurred in September 2021. At a minimum, how long must the appraiser retain his workfile? - correct answer ✔✔April 2024; An appraiser must retain the workfile for five years after preparation or two years after final disposition of any judicial proceeding in which the appraiser provided testimony related to the assignment, whichever period is later. April 2024 (five years after preparation) is longer than September 2023 (two years after final disposition). Which statement best describes the word "competency" as it relates to appraisal practice? - correct answer ✔✔It is fundamental to the definition of "appraiser." Which of these is NOT one of the steps required by USPAP when an appraiser wishes to perform an assignment for which he or she initially lacks the knowledge and experience? - correct answer ✔✔Use a hypothetical condition to complete the assignment as though the appraiser already had the knowledge and experience In order to perform an assignment for which an appraiser initially lacks the knowledge and experience to complete competently, the appraiser must: - correct answer ✔✔Disclose to the client, prior to agreeing to perform the assignment, the lack of knowledge or experience The requirement to create and maintain a workfile for an appraisal or appraisal review assignment applies to: - correct answer ✔✔All appraisers, regardless of credential level Three appraisers work together on an appraisal assignment. What would NOT be an appropriate workfile arrangement under USPAP? - correct answer ✔✔The workfile is posted on the Internet, so that anyone who wants to see it will be able to access it. Appraisers have broad _________ and significant _________ in determining the appropriate scope of work in an assignment. - correct answer ✔✔Flexibility, responsibility In order to determine the appropriate scope of work, the appraiser must ________ the problem to be solved. - correct answer ✔✔Identify The credibility of assignment results is measured in the context of: - correct answer ✔✔The intended use Intended use is: - correct answer ✔✔Identified by the appraiser on the basis of communication with the client Examples of assignment conditions include: - correct answer ✔✔All of these answers Identification of the intended use of an appraiser's opinions and conclusions is: - correct answer ✔✔Necessary for determining the appropriate scope of work In an appraisal or appraisal review assignment, the scope of work is an ___________ process. - correct answer ✔✔Ongoing The responsibility for determining an appropriate scope of work rests with the: - correct answer ✔✔Appraiser An appraiser's client wishes to remain anonymous, and asks the appraiser not to include client's identity in an appraisal report. What should the appraiser do? - correct answer ✔✔Omit the client's identity from the report but document the client's identity in the workfile Which statement is TRUE regarding exposure time? - correct answer ✔✔It is always assumed to precede the effective date of the appraisal. Exposure time is: - correct answer ✔✔An opinion developed by an appraiser When appraising a property with proposed improvements, what type of value opinion is permitted by USPAP? - correct answer ✔✔Both current and prospective values An example of a relevant property characteristic that could affect a real property appraisal assignment would be: - correct answer ✔✔The fact that the subject property is affected by an easement What is the primary purpose of an appraiser making an inspection of the subject property? - correct answer ✔✔To collect information about characteristics that are relevant to value When an appraiser provides a current value opinion on a proposed new building, he or she is utilizing a(an) _____________ that the proposed improvements are completed as of the effective date of the appraisal. - correct answer ✔✔Hypothetical condition An extraordinary assumption may be used in an assignment only if: - correct answer ✔✔Required to develop credible results An unacceptable assignment condition would be a condition that: - correct answer ✔✔All of the answers listed: Limits the scope of work to the extent that the value opinion is not credible, Precludes an appraiser's impartiality, Limits report content, resulting in a misleading report When developing a sales comparison approach under USPAP: - correct answer ✔✔The appraiser must analyze such data as are available to indicate a value conclusion Which statement is TRUE regarding USPAP and the three approaches to value? - correct answer ✔✔An assignment condition may require an appraiser to develop an approach that he or she would otherwise consider unnecessary. When analyzing listings of the subject property in a real property appraisal assignment, USPAP requires an appraiser to analyze, at a minimum, ____________. - correct answer ✔✔Current listings When analyzing the subject property's sales history in a real property appraisal assignment, an appraiser is required by USPAP to analyze ______________. - correct answer ✔✔All sales of the subject property that occurred within three years prior to the effective date of the appraisal In the development of an appraisal, the appraiser is required to: - correct answer ✔✔Not commit a substantial error that significantly affects the appraisal The process of reconciliation entails ___________. - correct answer ✔✔Careful consideration of the quality and quantity of data When is it necessary to analyze prior listings of the subject property in a real property appraisal assignment? - correct answer ✔✔When such analysis is relevant to the current assignment STANDARD 2 sets forth requirements for - correct answer ✔✔Appraisal report content The use of standard appraisal reporting forms - correct answer ✔✔Is not required by STANDARD 2 What is the essential difference between the two reporting options? - correct answer ✔✔The content and level of information The two written report options stated in Standards Rule 2-2 are - correct answer ✔✔Appraisal Report and Restricted Appraisal Report Which of the following is NOT required by USPAP to be in an Appraisal Report? - correct answer ✔✔Client's specific name An appraiser's client requests anonymity and asks that their identity not appear in the Appraisal Report that is prepared for the assignment. What must the appraiser do? - correct answer ✔✔All of these actions must be taken: Use care not to violate the Confidentiality section of the ETHICS RULE, State in the report that the client's identity has been withheld at the client's request, Document the identity of the client in the workfile When reporting the results of an appraisal, dates that must be included are - correct answer ✔✔Effective date and report date In an Appraisal Report, the scope of work used to develop the appraisal must be - correct answer ✔✔summarized An appraiser determines that the cost approach is not necessary in an appraisal assignment, and therefore does not develop the approach. In the Restricted Appraisal Report for the assignment, what must the appraiser do? - correct answer ✔✔State the reason for the exclusion of the approach When an extraordinary assumption is used in an appraisal, the report must state the extraordinary assumption and - correct answer ✔✔state that its use may have affected the assignment results All written appraisal reports must contain - correct answer ✔✔a signed certification An appraiser is preparing a Restricted Appraisal Report in a situation where there are intended users in addition to the client. Which statement is true regarding this situation? - correct answer ✔✔These additional intended users must be identified in the report by name. According to USPAP, any appraiser who signs any part of an appraisal report is required to - correct answer ✔✔sign a certification What is the purpose of including a signed certification in an appraisal report? - correct answer ✔✔For the appraiser to acknowledge his or her ethical obligations Which of the following best describes bias in appraisal practice? - correct answer ✔✔It is not permitted A reviewer is reviewing a real property appraisal and has developed her own value opinion that differed from the value opinion in the work under review. When reporting her value opinion in the appraisal review report, what must the reviewer do? - correct answer ✔✔Provide data and analysis that matches the reporting requirements for an Appraisal Report A reviewer is preparing an appraisal review report. The identity of the appraiser who completed the work under review was not provided by the reviewer's client. What should the reviewer do? - correct answer ✔✔State, in the appraisal review report, that the appraiser's identity was withheld by the client As part of an appraisal review assignment, a reviewer develops his own opinion of value that differs from the original appraiser's value opinion. How many certifications does USPAP require in the appraisal review report for this assignment? - correct answer ✔✔One Is a reviewer permitted by USPAP to use information that was not available to the original appraiser to discredit the work under review? - correct answer ✔✔No 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. - correct answer ✔✔True If a reviewer provides an oral report of an appraisal review - correct answer ✔✔a signed certification must be inserted into the workfile If an appraiser is asked to develop an opinion of the quality of another appraiser's work and to agree or disagree with the value conclusion - correct answer ✔✔this is a two-stage assignment Which of these examples indicates that a reviewer DID NOT develop his own opinion of value in an appraisal review assignment? - correct answer ✔✔I reject the value conclusion as lacking credibility due to the errors and inconsistencies found. STANDARD 5, Mass Appraisal, Development, applies to: - correct answer ✔✔Both real and personal property STANDARD 5 is most similar in structure to: - correct answer ✔✔STANDARD 1 An appraiser is engaged by her local county assessment board to complete an appraisal on an apartment building for ad valorem taxation purposes. Which USPAP STANDARD(S) apply to this assignment? - correct answer ✔✔STANDARDS 1 and 2 In a written mass appraisal report prepared under STANDARD 6, what is the purpose of a signed certification? - correct answer ✔✔It serves as an appraiser's acknowledgement of his or her ethical obligations Notifications sent to property owners of the results of a mass appraisal, which may be required by public policy, are considered: - correct answer ✔✔Notifications, and not reports In a personal property appraisal assignment that includes multiple objects as part of the same assignment: - correct answer ✔✔The objects that are more significant to the assignment results should be the focus of the analysis When appraising personal property, the appraiser must analyze prior sales of the subject over what time period? - correct answer ✔✔A reasonable and applicable time An appraiser must recognize that there are distinct levels of trade in personal property, and each may have different comparable data. - correct answer ✔✔True Which of the following reports require a signed certification? - correct answer ✔✔All oral and written reports covered in USPAP An appraiser is developing an appraisal and will be reporting it in a Restricted Appraisal Report. Because this less detailed reporting option is being used, is the appraiser permitted to use an abbreviated appraisal development process? - correct answer ✔✔No Under STANDARD 8, a personal property appraiser has ____ written report options. - correct answer ✔✔2 A written business appraisal report must be prepared in accordance with which of the following options? - correct answer ✔✔Appraisal Report or Restricted Appraisal Report An appraiser's certification in a business or intangible asset appraisal report does not: - correct answer ✔✔Contain a reference to the inspection of the subject property* Which of the following statements BEST describes Advisory Opinions? - correct answer ✔✔They are not part of USPAP but illustrate applicability and provide guidance. An appraisal that takes into consideration the full effect of known environmental contamination would be considered: - correct answer ✔✔"As-is" The competency required to appraise subsidized housing extends beyond typical residential appraisal competency. - correct answer ✔✔True In an appraisal report, the use of terms that reflect a scale such as "good" or "average": - correct answer ✔✔Should include explanation that provides context An appraiser provides raw AVM output to a client. This is: - correct answer ✔✔Not an appraisal, and no workfile is required An appraiser agrees to provide a market value appraisal for a client. Which statement is true about this situation? - correct answer ✔✔It is essential that the appraiser identify the source of the definition of value to be used. If a borrower attempts to engage an appraiser to complete an appraisal for a federally-regulated lending transaction, the appraiser should disclose: - correct answer ✔✔That the lender must engage the appraiser, and that the appraiser cannot later "readdress" the report Regulations and guidelines that apply to an appraisal for a federally-regulated lending transaction are: - correct answer ✔✔Assignment conditions What type of appraisal would be indicated by the phrase, "On September 10, 2012, the market value of the subject property was $200,000"? - correct answer ✔✔Retrospective