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

Download USPAP Exam 2024 with 100% Correct Answers and more Exams Community Corrections in PDF only on Docsity! USPAP Exam 2024 with 100% correct answers Financial chaos began in the US during the - Correct answer-1929 stock market crash after the great depression 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 real estate agents In the wake of the stock market crash and economic depression the first.... - Correct answer-group of appraisers 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, which precludes an appraiser from complying with a part of USPAP? Jurisdictional exception Which 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! -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 (Financial Institutions Reform, Recovery and Information Act.) -Supervises agencies and appraisers and insures government has enough controls in all real estate activity 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 assignment as of the effective date of the assignment results. -If an appraiser did not inspect the interior of a property, the appraiser might use as extraordinary assumption 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 is contrary 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 appraised would 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 and open 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 the owner 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 a specific assignment. -Can be an individual, group, or entity. -Can contact appraiser individually or through an agent. Assignment conditions are... - Correct answer-Assumptions, extraordinary assumptions, hypothetical conditions, 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 development standards An assignment is a... - Correct answer-Valuation service that is provided by an appraiser as a consequence of an agreement with a client. Assignment results are... - Correct answer-The appraisers opinions and conditions made by a specific assignment. 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. 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 or even 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 and intended user -When acting outside of appraisal practice, one should mis-represent themselves (saying its an appraisal when your brokering a deal) -Mustn't violate public trust. An appraiser must act... - Correct answer-Competently in a manner that is independent, impartial and objective. An appraiser must maintain data, information and analysis necessary to support their opinions for appraisal in accordance with... - Correct answer-Record Keeping Rules For all assignments an appraiser must comply with the... - Correct answer-Competency rules and jurisdictional 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-Appraisal Practice 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-Record Keeping or scope of work requirements in USPAP What appraisal services are covered by USPAP? - Correct answer-Appraisal, Appraisal Review, Any other services choosing to represent as "appraiser. Appraisal practice is a ________________ of the broader concept of valuation services. - Correct answer-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 and independence 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, material status, etc. -Not perform in a neglegent manner Communications/reporting issues- An appraiser must not... - Correct answer--Communicate assignment results 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! Failure to comply with record keeping rules violate... - Correct answer-Ethics Rules! Competency requirements... - Correct answer--The ability to property identity the problem to be addressed. -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 on knowledge 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 rules apply. -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 the assignment or withdraw from it. Can you accept an assignment knowing you will get paid when and if it closes? - Correct answer-NO! It is not 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 _______________ _______________ in determining 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 the assignment. -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 the problem to be solved. An appraiser must not allow client objectives to create... - Correct answer-Bias on the assignment results. Appraisers have broad ____________ and significant ________________ in determining the appropriate scope of work in an assignment - Correct answer-Flexibility, responsibility An appraisers report must contain _____________________ to allow intended users to understand the scope of the work performed. - Correct answer-Sufficient information Scope of work disclosures - Correct answer-One must report sufficient information to allow intended users to understand work.