USPAP 15-HOUR COURSE 100% VERIFIED ANSWERS 2024/2025 CORRECT STUDY SET, Exams of Organization and Business Administration

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USPAP 15-HOUR COURSE

100% VERIFIED ANSWERS

2024/2025 CORRECT STUDY

SET

The Preamble states that USPAP is for appraisers and users of appraisal services. The stated purpose of USPAP Promote and maintain a high level of public trust in appraisal practice. When obligated by law or regulation an appraiser must comply with USPAP. USPAP applies to which types of properties? Tangible and Intangible Valuation services is not a subset of appraisal practice. An appraiser has the professional responsibility to identify the capacity in which he or she is performing. Reasons why an appraiser would prepare an appraisal assignment in conformance with USPAP

1. Agreement with client.
2. Law or regulation.
3. Voluntary choice.

An appraiser who provides an appraisal service that is not an appraisal, appraisal review, or appraisal consulting assignment does not have workfile obligations associated with the assignment. True An individual is not prohibited from providing valuation services that involve advocacy while acting as an appraiser. False When performing valuation services outside of appraisal practice, appraisers must be careful not to _________________ the client and other intended users about their role. Mislead 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 acting as an appraiser. An appraiser is engaged to teach an appraisal course. What parts of USPAP apply? The parts of USPAP that apply generally to appraisal practice. The Appraisal Practices Board (APB) was created when? 2010 The APB is a(n) independent board. Boards within The Appraisal Foundation (TAF)

1. Board of Trustees (BOT)
2. Appraisal Standards Board (ASB)
3. Appraisal Qualifications Board (AQB)
4. Appraisal Practices Board (APB) APB is a

private entity. The APB has authority to enforce the requirements of USPAP. False Who has the only jurisdiction and authority over appraisers? States ASB Develops, interprets, and amends USPAP. Advisory opinions Not part of USPAP; reference material only. APB Guidance is voluntary. ASC Maintains the official National Registry of state certified and licensed appraisers. State appraisal regulatory committees responsible for issuing credentials to individual appraisers. Responsibilities of ASC:

• Establishes, improves, and promulgates the USPAP
• Subject, content, and substance of USPAP and other communication related to appraisal standards.
• Establishes standards of professional appraisal practice for the guidance and education of appraisers and users of appraisal services.
• Maintains the official National Registry of state certified and licensed appraisers. Developing, amending, and interpreting USPAP is NOT a responsibility of ASC

12. USPAP divides the appraisal process into two distinct types of activity: Develop and report Identify the problem The first step in the appraisal process. Communication The reporting process involves ________________ of the appraiser's opinions and conclusions. AQB

• Disseminates to state appraisal boards the qualifications criteria for appraiser certifications and recertification.
• Responsible for establishing education and experience requirements for licensing and certification of appraisers. BOT appoints members of the APB, AQB, ASB. The ethical obligations of USPAP apply to Individual appraisers. Bias is never allowed. In appraisal practice, advocating the cause or interest of any party or issue is never permitted. If an appraiser has appraised a property multiple times within the prior 3 years he must disclose the number of times he appraised the property to a prospective client. True 3 years

Prior to accepting an assignment, an appraiser must disclose any service he provided regarding the subject property for a period of An appraiser has been asked to complete an appraisal assignment. The fee is to be paid when when the loan closes. According to USPAP, may the appraiser accept the assignment under the conditions? No The payment of fees by the appraiser in connection with the procurement of an assignment is allowed if properly disclosed. Confidential information is under USPAP is information the appraiser receives from the client an dis identified as confidential, but is not available from other sources. The disclosure of confidential information to a third party is unethical unless authorized by the client. Competency fundamental to the definition of appraiser. An appraiser must obtain the necessary competency prior to accepting the assignment. False In order to accept an assignment when an appraise initially lacks the knowledge and experience to complete an assignment competently he must Disclose to the client, prior to accepting, the lack of knowledge or experience. USPAP ________________ permit an appraiser to create a workfile after transmitting the report to the client. does not An appraiser prepared an appraisal report in April 2009. He testified in court regarding the value of the property in January 2010. The decision was rendered in February 2010 and was appealed in

March 2010. The appellate court heard the case in January 2011 and remanded the case for reconsideration by the lower court final disposition of the case occurred in Sept 2011. At a minimum, how long must the appraiser retain his workfile? April 2014 Three appraisers work together on an appraisal consulting assignment. What would NOT be an appropriate workfile arrangement under USPAP? The workfile is posted on the internet,s o that anyone who wants to see it will be able to see it. Trainer appraiser have the same workfile obligations under USPAP as certified or licensed appraisers. True An appraiser's peers Others who have expertise and competency in a similar type of assignment. Scope of Work in USPAP The report must contain sufficient information so that intended users understand the scope of work. Scope of work decision Exclusion of an approach that is not necessary for credible, results in a given assignment. Jurisdictional exception in an assignment Identify the law, comply with the laws, disclose in the report the part of USPAP that is voided, and cite in the report the law that caused it. Comply with the law or regulation When a law or regulation precludes compliance with any part of USPAP, appraisers must. Purpose of the Jurisdictional exclusion rule To provide a saving or severability clause to preserve the balance of USPAP. True

If USPAP compliance is mandated by federal law, no state or local law can create a jurisdictional exclusion. Jurisdictional exclusion rule term "law" Legislative law, court-made laws, and administrative rules and ordinances. False Appraisers cannot be expected to be aware of all of the laws and regulations that apply to a particular assignment. False The use of the jurisdictional exclusion rule in an assignment is a matter of choice by an appraiser. False A state passes a law requiring appraisers to keep their workfiles for 10 years after preparation. This is considered a jurisdictional exclusion under USPAP. Jurisdictional exclusion example A probate court paying appraisers based on the value of the subject. Occurrence of a jurisdictional exclusion It is automatic when a law precludes compliance with a part of USPAP. 6 Standard Rules Standard 1 contains this many rules. The development of a real (only) property appraisal. It mirrors the appraisal process and can be used as a conventional checklist. Standard 1. The requirements of Standard 1. Used as a checklist by an appraiser who is developing a real property appraisal.

does not require Standard 1 _________________ an appraiser to achieve perfection in developing a real property appraisal. When the series of errors affects the credibility of the results. When does a series of minor errors potentially result in a USPAP violation? Consider whether the extent of the planned development process and report are still appropriate. What should an appraiser do if, during the course of an assignment, becomes aware of a change in the intended use of the report? This does not make the borrower an intended user. If a borrower receives a copy of an appraisal report from a mortgage lender as a result of disclosure requirements: An appraiser must document the client's identity in the workfile. If a client wishes to remain anonymous the appraiser must: Exposure time Is always assumed to precede the effective date of the appraisal. False Identification of the intended use of an appraisers opinions and conclusions is not necessary in most appraisal assignments. Identify the special financing to form and develop an opinion on their effect on value. Special requirements when appraising the market value of a property subject to favorable financing. To collect information about characteristics that are relevant to value. The primary purpose of an appraiser making an inspection of the subject property. True

When appraising proposed improvements, both current and prospective value opinions are permitted by USPAP. The fact that the subject property is affected by an easement. An example of a relevant property characteristic that could affect a real property appraisal assignment. True An appraiser may use an combination of a property inspection and documentation in identifying relevant characteristics of the subject property. Hypothetical condition When an appraiser provides a current value opinion on a proposed new building based upon the proposed improves are completed as of the effective date of the appraisal. Extraordinary assumption Only if required to develop credible results. False A research assignment, in which an appraiser completes research for a client but does not develop an opinion or conclusion, is not part of appraisal practice.

**1. Limits the scope of work to the extent that the value opinion is not credible.

2. Precludes an appraiser's impartiality.
3. Limits report content, resulting in a misleading report.** Unacceptable assignment condition. Step 3 Date Collection and Analysis Market Analysis

Demand Studies Supply Studies Marketability Studies Highest and Best Use Analysis Site as though vacant. Ideal Improvement Property as Improved Step 4 Application of the Approaches Value Cost / Sales Comps / Income Captitalization An assignment condition may require an appraiser to develop an approach that he or she would otherwise consider unnecessary. USPAP and the 3 approaches to value. The appraiser must analyze such data as are available to indicated value conclusion. When developing a sales comp approach under USPAP. Current Listings When analyzing listings of the subject property in a real property appraisal assignment, USPAP requires, at a minimum, ___________to be analyzed. Analyzed in the appraisal If an appraiser is asked to appraise a property on which there is known, current agreement of sale, the agreement must be All sales of the subject property that occurred within 3 years of the effective date of the appraisal. When analyzing the subject property's sales history in a real property appraisal assignment, an appraiser is required by USPAP to analyze Step 5

Reconciliation of Value Indications and Final Opinions of Value Careful consideration of the quality and quantity of data The process of reconciliation entails False Standard Rules 1-5 require an appraiser to analyze the sales history of the comps When such analysis is relevant to the current assignment When is it necessary to analyze prior listings of the subject property in a real property appraisal assignment. Step 6 Report of Defined Value Opinions Not required by Standard 2 The use of standard appraisal reporting forms. Standard 2 Sets forth requirements for appraisal report content. Summary Self-Contained Restricted Use The 3 written report options stated in Standards Rule 2- 2 The level of detail and information The essential differences among the 3 reporting options. Client's specific name Not required by USPAP to be in a Summary Appraisal Report Effective Date and Report Date

Must be included when reporting the results of an appraisal. The date of the report Establishes the appraiser's perspective on the market. The exclusion of any of the valuation approaches Must be explained in a Restricted Use Appraisal Report Scope of work used to develop the appraisal must be summarized In a Summary Appraisal Report Must be stated and state that its use may have affected the assignment results. An extraordinary assumption used in an appraisal, False A workfile is not required in support of a Restricted Use Appraisal Report Equally credible A value opinion expressed in a Summary Appraisal Report and a value opinion expressed in a Restricted Use Appraisal Report are False There can be intended users other than the client for a Restricted Use Appraisal Report. Sign the certification According to USPAP, any appraiser who signs any part of an appraisal report is required to False The disclosure of a significant real property appraisal assistance provided in an appraiser's report is not required under USPAP. For the appraiser to acknowledge his/her ethical obligations. The purpose of including a signed certification in an appraisal report.

True A written summary of an oral appraisal report must be added to the appraiser's workfile within a reasonable time after the issuance of an oral report. The appraiser must add a signed and dated certification to her appraisal workfile. An appraiser provides an oral report of a real property appraisal assignment Summary Appraisal Report To the extent possible and appropriate, oral appraisal reports for real property must address the substantive matters that apply to this report. True A Recertification of Value does not change the effective date of the value opinion. He is not permitted to "readdress" the report to Bank B. An appraiser completes an appraisal for Bank A. Two months later, he is contacted by Bank B, who asks him to "readdress" his prior report to them.... New Assignment If a client requests a more current valuation on a property that was the subject of a prior assignment, this is a False USPAP requires an appraiser to obtain a release from a previous client before appraising the same property for a new client. The client is the only intended user Restricted Use Appraisal Report Not sign the certification If a supervising appraiser makes changes to a trainee's report which the trainee does not agree with, the trainee should

communicating, developing Appraisal review is the process of _______________ and ____________ an opinion about the quality of another appraiser's work performed as part of an appraisal, appraisal review, or appraisal consulting assignment. Standards are paired A major difference bewteen STANDARDS for real property appraisal review is? One How many STANDARDS address appraisal review? True A reviewer is required to identify the appraiser who completed the work under review, unless the identity has been withheld by the client. Appraisal Review Appraisal Real Property Appraisal Consulting Under STANDARD 3, what can be reviewed? Not used as the basis to discredit the original appraiser's value opinion. A review appraiser may use additional information that was not available to the original appraiser as long as the information is: False It is not permissible for a review appraiser to use an extraordinary assumption in a review assignment. 2 - Stage An appraisal review can be a _______________ assignment; an appraisal review and a value opinion by the reviewer. False

An appraiser must develop an opinion regarding the qualifications of the appraiser whose work is under review. STANDARD 1 If an appraiser develops his own opinion of value, it must be developed under the requirements of

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Scope of Work A reviewer who develops his own value opinion may use a different _____________ than that of the work under review. Sufficient information, intended users A reviewer is responsible for ensuring that there is _________________ in a review report so that it can be properly understood by ________________. False Under certain circumstances, a reviewer may use information that was not available to the original appraiser to dispute the work of the appraiser. Must state this fact in the review report If a client witholds the identity of the appraiser who completed the work under review, the reviewer True The reviewer performing an appraisal review must not sign the work under review unless he/she intends to accept the responsibility as a co-signor of the work. A signed certification must be inserted into the workfile If a reviewer provides an oral report of an appraisal review: Reject the value conclusion as lacking credibility due to the errors and inconsistencies found. Indicates a reviewer DID NOT develop his own opinion of value in an appraisal review assignment: TRUE

A statement by a reviewer that "the value opinion stated in the appraisal report is not adequately supported" would be an indication that the reviewer DID NOT develop his or her own value opinion. This is a 2-Stage Assignment If an appraiser is asked to develop an opinion of the quality of another appraiser's work and to agree or disagree with the value conclusion: Is not an opinion of value An appraisal consulting assignment: Determine the quality of another appraiser's work An appraisal consulting assignment does not specific There are no __________ reporting options for written real property appraisal consulting reports. Intended use and intended users The appropriate level of information in a real property appraisal consulting report is dictated by Both real and personal property STANDARD 6, Mass Appraisal, applies to: STANDARD 3 STANDARD 6 is most similar in structure to: It serves as an appraiser's acknowledgement of his/her ethical obligations. In a written appraisal report prepared under STANDARD 6, what is the purpose of a signed certification? Notifications and not reports Notifications sent to property owners of the results of a mass appraisal, which may be required by public policy, are considered

STANDARDS 1 and 2 An appraiser is engaged by her local count assessment board to complete an appraisal of an apartment building for ad valoram taxation purposes, which USPAP STANDARDS apply to the assignment? The objects that are most significant to the assignment results should be the focus of the analysis. In a personal property appraisal assignment that includes multiple objects as part of the same assignment: A reasonable and applicable time When appraising personal property, the appraiser must analyze prior sales of the subject over what time period? trade, different comparable data There are distinct levels of __________ in personal property, and each may have _______________. 3 Under STANDARD 8, a personal property appraiser has _________ different report options. All oral and written reports covered in USPAP Which reports require a signed certification? Appraisal Report or Restricted Use Appraisal Report A written business appraisal report must be prepared in accordance with: Oral appraisal report An appraiser is permitted under USPAP to provide an __________of a business enterprise. Contain a reference to the inspection of the subject property. An appraiser's certification in business or intangible asset appraisal report does not: Clarify, explain, or elaborate on a Rule or Standards Rule

What is the purpose of Statements on Appraisal Standards in USPAP? The Statement is applicable to all appraisal disciplines. What is indicated if a Statement on Appraisal Standards is labeled with "ALL"? The Statement is applicable to real property appraisal. What is indicated if a Statement on Appraisal Standards is labeled with "RP"? The name and version of the software program. If an appraiser uses a commercial software program for Discounted Cash Flow (DCF) Analysis in an appraisal, what should the appraiser provide in the report? Be tested an checked for errors and reasonableness. The results of DCF Analysis should: A prospective appraisal Developing an opinion of value of a property as of a specific future date is: The context of the market conditions for the appraiser's opinion. What does the effective date of an appraisal establish? Retrospective What type of appraisal would be indicated by the phrase, "the market value of the subject property was $200,000? NOT An appraiser who values an environmentally contaminated property is ________ required by the Competency Rule to be an expert in the scientific aspects of contamination. Should include explanation that provides context. In an appraisal report, the use of terms that reflect a scale such as "good" or "average". Prohibited

The use of supported conclusions related to race, color, or religion in an appraisal may be ________________ by applicable law. beyond typical residential appraisal competency The competency required to appraise subsidized housing extends: Not consistent with market value A value opinion developed to reflect the most probable price under a forced sale condition is: Not an appraisal, an no workfile is required An appraiser provides raw AVM output to a lender. The is: not interchangeable All market value definitions are: Assignment conditions Laws and regulations that apply to an appraisal for a federally regulated lending transaction would be considered: FALSE Appraisals for federally regulated financial institutions often involve the use of the Jurisdictional Exception Rule. That the lender must engage the appraiser, and the appraiser cannot late "readdress" the report. If a borrower attempts to engage an appraiser to complete an appraisal for a federally regulated lending transaction, the appraiser should disclose: