USPAP Exam 2024 with 100% Correct Answers, Exams of Community Corrections

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USPAP Exam 2024 with 100% correct answers

Financial chaos began in the US during the - Correct answer-1929 stock market crash after the greatdepression

In the 1950s-70s double continued with - Correct answer--Works related areas -Property taxation-Federal housing programs

1990s trouble was because of... - Correct answer-Mortgage scams and illegal house flipping. 1980s trouble was because of... - Correct answer-the Savings and Loans Crisis 1990s to 2000s trouble was from... - Correct answer-identity theft and appraisal report tampering. Prior to 1930s, appeasing properties could be done by... - Correct answer-mortgage brokers and realestate agents

In the wake of the stock market crash and economic depression the first.... - Correct answer-group ofappraisers were formed

Issues recognized by new professional appraisers - Correct answer--Provide credible services

When an appraiser uses a hypothetical condition in an appraisal, USPAP requires the appraiser to:Clearly and conspicuously state the use of the hypothetical condition in the report Which term is defined as an assignment condition established by applicable law or regulation, whichprecludes an appraiser from complying with a part of USPAP? Jurisdictional exceptionWhich of these actions would be considered significant appraisal assistance when performed by an appraiser?Research and selection of comparable sales

-Have services provided by ethical and competent individuals -Foster public trust Ad-hoc Committee - Correct answer-Eventually became USPAP -find market value-develop independent authority

TAF - Correct answer-The Appraisal Foundation Three boards on TAF - Correct answer--The Appraiser Qualifications Board -The Appraisal Standards Board -The Board of Trustees USPAP has no legal authority but... - Correct answer-NYS enforces it!

Congress contributed to USPAPs acceptance by... - Correct answer-identifying it as the generallyaccepted set of standard practices for the profession.

Title XI of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) provided... -Correct answer-Recognition and authorized federal institutions to reference USPAP

Uniform Relocation Assistance and Real Properties Acquisition Policies Act - Correct answer-Where theexecutive branch followed congress by referencing USPAP

With Office of Management and Budget (OMB) Circlular A-129, January 11, 1993.... - Correct answer-Other federal agencies recognized USPAP

The IRS bulletin 2006-46, November 13, 2006 generally - Correct answer-Accepted USPAP appraisalstandards, defining a "qualified appraisal"

Other groups that accept USPAP as integrated standards in their policies. - Correct answer-Fannie mae,farmer mac, the farm credit admin, employee relation council

TAF definition - Correct answer-The Appraisal Foundation TAF IS - Correct answer--A Non-Profit-An org authorized by congress An org made up of other organizations TAF has how many boards? - Correct answer-Two! Two TAF boards names - Correct answer--Appraiser Qualifications board-Appraiser Standards Board

TAF Sponsors - Correct answer--Appraisal sponsors (non-profits)

-Affiliate sponsors (non-profits with valuation interest) -International sponsors (non-profit based outside of US with valuation interest) TAF Advisory Councils - Correct answer-The appraisal foundation advisory council (has non-profitorganizations)

-The inducts advisory council (has for profit organizations) The board of Trustees- 3 functions - Correct answer-1) Appoints members to its independent boards

2. Secures funding for TAF operations
3. Monitors performance and oversight of TAF and its boards and Advisory Councils "Valuation Advisories" - Correct answer-Means to identify issues and give guidance. Board also gives written, visual and audio information. Appraiser Qualifications Board Functions - Correct answer--Establishes minimum education, experience,and other criteria for verification of appraisers and supervisors.

-Defines, issues, and promotes qualification criteria -Teaches qualification criteria to states, gov. and others -Creates Licensing and Certification Exams

-Responsible for USPAP courses The Appraisal Standards Board- Functions - Correct answer--Revises and promotes USPAP -Responsible for the subject, content, and substance of USPAP -Establishes standards of professional appraisal practice The Appraisal Subcommittee- Functions - Correct answer-Created as a result of FIRREA (FinancialInstitutions Reform, Recovery and Information Act.)

-Supervises agencies and appraisers and insures government has enough controls in all real estateactivity to protect federally regulated financial institutions from loss.

What does the Preamble contain - Correct answer--The overall purpose and strict of USPAP Bias - Correct answer-A preference or inclination that precludes an appraiser's impartiality,independence, or objectivity in an assignment

Extraordinary Assumption - Correct answer-Involves a situation directly related to a specific assignmentas of the effective date of the assignment results.

-If an appraiser did not inspect the interior of a property, the appraiser might use as extraordinaryassumption to produce credible results and alert the client and intended users to the uncertainty of the assignment results. Ex. Snow on the roof Hypothetical Condition - Correct answer-A condition, directly related to a specific assignment, which iscontrary to what is known by the appriser to exist on the effect date of the assignment results, but is used for the purpose of analysis.

-These are typically "what if" scenarios supposed for the purpose of analysis. -Ex. What is zoning was different, what if its a new build. -Most common on new builds Exposure Time - Correct answer-The estimated length of time that the property interest being appraisedwould have been offered on the market prior to the hypothetical consumption of a sale at market value on the date of the appraisal. Exposure time always occurs... - Correct answer-PRIOR (before) to the effective date of the appraisal. Exposure time is based on... - Correct answer-Analysis of past events and assumes a competitive andopen market.

Cost- Fact or Opinion - Correct answer-FACT/Estimate of fact -Ex. When an appraiser is asked to estimate the cost of improvements for a property. Price- Fact or Opinion - Correct answer-Becomes fact once stated! -An appraiser can estimate the price a homeowner should list a property for, but once it is stated by theowner it becomes fact!

Value- Fact or Opinion - Correct answer-Always an opinion! Client definition - Correct answer-The party who engaged, by employment or contract, an appraiser in aspecific assignment.

-Can be an individual, group, or entity.

-Can contact appraiser individually or through an agent. Assignment conditions are... - Correct answer-Assumptions, extraordinary assumptions, hypotheticalconditions, laws and regulations, jurisdictional exceptions, and other conditions that affect the scape of work. Assignment Laws include... - Correct answer-constitutions, legislative and court-made law,administrative rues and ordinances. The regulations include rules or orders having legal force issued by an administrative. Assignment conditions are addressed both in... - Correct answer-Scope of Work and the developmentstandards

An assignment is a... - Correct answer-Valuation service that is provided by an appraiser as aconsequence of an agreement with a client.

Assignment results are... - Correct answer-The appraisers opinions and conditions made by a specificassignment.

Assignment results are NOT - Correct answer-Physical Characteristics Intended Use- - Correct answer-Is critical to the scope of work decision. -Determined after talking with the client AT TIME OF THE ASSIGNMENT Intended User - Correct answer-Is the client and any other party identified as users by the appraiser. -Also determined after talking with the client AT TIME OF THE ASSIGNMENT An appraiser's report is either... - Correct answer-Written or given orally.

An appraisers signature is... - Correct answer-Personalized evidence that authenticated the appraiserhas performed and is deposable for the contents of the report.

Of the assignment involved an appraisal or appraisal review. the appraiser must have... - Correctanswer-A work file for that assignment.

The work-file documents... - Correct answer-Support the appraisers analysis, opinion, and conclusions. Main Identified Services within "Appraisal Practice" include... - Correct answer-Appraisal and Appraisalreview.

Performed only by appraisers. Lessor appraisal practices may include... - Correct answer-Teaching courses, performing feasibilitystudies, writing appraisal articles, or performing market studies.

Scope of Work Definition - Correct answer-The type and extent of research and analysis in anassignment.

For each appraisal assignment done, he must... - Correct answer--Identify the problem to be solved -Determine and perform scope of work for credible results -Disclose type of scope of work in the report. The party who engaged an appraiser - Correct answer-Client Assumes conditions contrary to known facts - Correct answer-Hypothetical

Services performed by an individual acting as an appraiser - Correct answer-Appraisal Practice Documents that support an appraisers conclusions - Correct answer-Workfile Presumes as fact otherwise uncertain information - Correct answer-Extraordinary Assumption A preference that precludes an appraisers impartiality - Correct answer-Bias The amount asked, offered or paid for a property - Correct answer-Price Services pertaining to aspects of property value - Correct answer-Valuation Servises The act or process of developing an opinion of value - Correct answer-Appraisal An opinion that expresses an economic concept - Correct answer-Value The preamble identifies... - Correct answer-The purpose of USPAP What is the purpose of USPAP? - Correct answer--To maintain high levels of public trust in professionalappraisal practice

-To establish minimum requirements for professional appraisal practice. Who benefits from USPAP? - Correct answer--Providers of Appraisal Services -Users of Appraisal Services An individual must comply with USPAP when required by... - Correct answer-Law, Regulation,Agreement (with a client or other user)

What appraisal services are covered by USPAP? - Correct answer--Appraisals-Appraisal Review -Any other services choosing to represent as "appraiser" What property types are covered by USPAP? - Correct answer-Tangible and Intangible Valuation Services pertain to... - Correct answer-Anyone evaluating a property. Could be appriser oreven Real Estate brokers

Appraisal Practises pertain to... - Correct answer-Only Real Estate Appraisers. Criteria for being an "appraiser" - Correct answer--Presenting oneself as an appraiser exclusively. -Competence -Service must be independent, impartial and objective. Appraiser Definition - Correct answer-Independent, impartial and objective. Responsibilities of an individual regarding user expectations - Correct answer--Identify capacity andintended user

-When acting outside of appraisal practice, one should mis-represent themselves (saying its an appraisalwhen your brokering a deal)

-Mustn't violate public trust. An appraiser must act... - Correct answer-Competently in a manner that is independent, impartial andobjective.

An appraiser must maintain data, information and analysis necessary to support their opinions forappraisal in accordance with... - Correct answer-Record Keeping Rules

For all assignments an appraiser must comply with the... - Correct answer-Competency rules andjurisdictional exceptions rules.

USPAP obligations for Valuation services performed by an individual outside of appeals practice. -Correct answer-An individual who acts in other professional roles such as attorneys, accountants, brokers etc. Must insure they are not misleading clients when acting in other roles. Valuation service performed by an individual acting in the role of an appraser - Correct answer-AppraisalPractice

When performing valuation services outside of appraisal practice, appraisers must be careful not to... -Correct answer-mislead clients about their intended roles.

For assignments other than appraisal and appraisal review, there are no... - Correct answer-RecordKeeping or scope of work requirements in USPAP

What appraisal services are covered by USPAP? - Correct answer-Appraisal, Appraisal Review, Any otherservices choosing to represent as "appraiser.

Appraisal practice is a ________________ of the broader concept of valuation services. - Correctanswer-Subset!

General Conduct: An appraiser must - Correct answer--Perform ethically and competently -Work in accordance to USPAP -Not engage in criminal conduct

-Not willingly or knowingly violate the requirements of the Record Keeping Rule Development Issues- An appraiser must - Correct answer--Perform with impartiality, objectivity andindependence without personal interest

-Not perform with bias -Not advocate cause or interest in any party -Not accept assignments that come with predetermined conclusions -Not misrepresent his role -Not rely on unsupported conclusions relating to race, color, religion, national origin, gender, materialstatus, etc.

-Not perform in a neglegent manner Communications/reporting issues- An appraiser must not... - Correct answer--Communicate assignmentresults with intent to mislead

-Use or communicate a report knowing its wrong -Knowingly let someone else communicate a report that is misleading If any party has interest in an assignment they must... - Correct answer-Disclose to the client. If an appraiser has appraised a home within ____ years they must disclose it. - Correct answer-3 years!

If an appraiser has agreed with a client not to disclose that he has appraised a property, he must -Correct answer-decline all assignments for that property that fall within a 3 year period.

Does an appraiser have to disclose commissions or anything of value given in connection to theprocurement of an assignment? - Correct answer-Yes!

Can an appraiser accept any assignment with contingency on the results? - Correct answer-NO! An appraiser must certify recognition and acceptance of USPAP responsibilities in an appraisal by fixinghis ___________________ on an assignment by assignment basis - Correct answer-signature!

Who can an appraiser disclose assignment results too? - Correct answer--The client -Parties specifically authorized by the client -State appriser regulatory agencies -Third parties as may be authorized by the law -A duly authorized professional peer review committee (unless it would be illegal) After all personal information has been removed through redaction or the process of aggregation clientauthorization is not... - Correct answer-Required for the disclosure of remaining information.

Physical characteristics are NOT... - Correct answer-Assignment results. This distinction enables an appraiser to share information (but not opinions) regarding physicalcharacteristics with other appraisers without violating confidentiality.

An appraiser must safeguard information by... - Correct answer-Telling others about the confidentiality,and using both physical and electronic forms.

An appraiser must prepare a work file for... - Correct answer-Each appraisal! A work file must be in existence __________ to the issuance of any report or other communication ofassignment results. - Correct answer-PRIOR! AKA Before!

If an oral report is given... - Correct answer-It must be added to the work file within a reasonableamount of time.

A workfile must include... - Correct answer--The name of the client and all intended users -A "True copy" -Summaries of all oral reports -All data and proof needed to support opinions and conclusions -A work file in support of "restricted appraisal report" or oral report! One must save a work file for... - Correct answer-5 years after creation, or 2 years after final dispositionof any judicial proceeding in which the appraiser gave testimony.

WHICHEVER EXPIRES LAST! An appraiser must make appropriate custody arrangements for the work file with all those that mayneed access to it. They include... - Correct answer--State regulatory agencies -Compliance with due process law -Other duly authorized professionals-Ex-peers

Failure to comply with record keeping rules violate... - Correct answer-Ethics Rules! Competency requirements... - Correct answer--The ability to property identity the problem to beaddressed.

-The knowledge and experience to complete the assignment -Ability to comply with laws and regulations. If an appraiser determines they are not competent... - Correct answer--They must disclose that lack onknowledge before accepting the assignment

-Take steps to become competent -Describe lack of competency in the report and the steps taken to become competent. If one discovers they are not competent DURING the assignment... - Correct answer-The same rulesapply.

-Notify the client -Take steps to become competent -Describe lack of competency in the report and the steps taken to become competent. If the assignment con not be completed competently, the appraiser must... - Correct answer-Deline theassignment or withdraw from it.

Can you accept an assignment knowing you will get paid when and if it closes? - Correct answer-NO! It isnot ethical!

If disclosed in a work file, can an appraiser accept a fee to acquire an assignment? - Correct answer-YES!It has to be disclosed.

Scope of work includes: - Correct answer--The extent to which the property is identified -The extent to which tangible property is inspected -The type and extent of data researched -The type and extent of analysis applied to create opinions and conclusions. Appraisers have _______________ _______________ and _______________ _______________ indetermining the appropriate scope of work in an assignment. - Correct answer-Broad flexibility, significant responsibility. Credible assignment results require... - Correct answer-Relevant evedence and logic Things that Scope of Work, works to identify - Correct answer--The client and other intended users -Intended use of the appraisers opinions and conclusions -Type and definition of value -Effective date of the appraisers onions and conclusions -Subject of the assignment and its relevant characteristics -Assignment conditions

Assignment conditions include: - Correct answer--Assumptions -Extraordinary assumptions-Hypothetical conditions -Law and regulations-Jurisdictional exceptions -Other conditions that affect the scope of work If scope of work can not be found... - Correct answer--The appraiser must withdraw from theassignment.

-Modify assignment conditions to expand options. -Use an extraordinary assumption. In an assignment, the scope of work is... - Correct answer-On-going In order to determine the appropriate scope of work, the appraiser must... - Correct answer-Identify theproblem to be solved.

An appraiser must not allow client objectives to create... - Correct answer-Bias on the assignmentresults.

Appraisers have broad ____________ and significant ________________ in determining the appropriatescope of work in an assignment - Correct answer-Flexibility, responsibility

An appraisers report must contain _____________________ to allow intended users to understand thescope of the work performed. - Correct answer-Sufficient information

Scope of work disclosures - Correct answer-One must report sufficient information to allow intendedusers to understand work.

-Disclosure reach and analysis performed Jurisdictional Exception Definition - Correct answer-An assignment condition established by law orregulation, that precludes an appraiser from complying with a part of USPAP.

Only that specific part of USPAP can be void. Procedure to apply jurisdictional Exception - Correct answer--Identify law -Comply with the law -Disclose in report -Cite in the report the law requiring USPAP exception. Types of Laws that can cause USPAP exceptions. - Correct answer--Constitutions-Legislative and court made law -Administrative rules and ordinances Instructions from a client or attorney do NOT... - Correct answer-establish jurisdictional exception Standard 1 - Correct answer-Find and complete research for Scope of work Standard 1-1 - Correct answer-Discusses the competency rule and obligations of an appraiser. -Understand cost models and techniques-Do not commit errors of omission or commission -Do not provide services in a carless or negligent mannerAppraisal standards history

Black Tuesday -- stock market crash of 1929

• The savings & loan crisis led to in 1986 a Ad Hoc Committee created USPAP (8 appr. organizations) andin 1987 The Appraisal Foundation Unified appraisal standardsAd Hoc committee believed in creating a new organization to set the national standard --> USPAP (Uniform Standards of Professional Appraisal Practice)Title XI of FIRREA
• The reason federal agencies began to reference and ID USPAP in laws and regulations- This stated that RE appraisals be performed in a standardized manner
• USPAP under TAF was a private entity --> public- Provides protection for federal financial and public policy interests in real estate related transactions --

Passed in response to loan and savings crisisPublic expectations of appraisers to be knowledgeable, experienced, objective, independent, and have integrity