7 Hour USPAP Exam 128 Questions with Answers,100% CORRECT

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7 Hour USPAP Exam 128 Questions with Answers What is true about an appraiser's description of the physical characteristics of a property? a) The physical chracteristics are treated as outside the ... appraisal practice b) The physical characteristics are not assignment results. c) The pyhsical characteristics must be verified with public records if the data is available through the normal course of business. d) The physical characteristics are confidential information. - CORRECT ANSWER b) The physical characteristics are not assignment results. Standards Rule 1-2 is labeled to identify what area of the appraisal process? a) Approaches to Value b) Market Analysis and Highest and Best Use c) General Development Requirements d) Problem Identification - CORRECT ANSWER d) Problem Identification An individual acting in the capacity of an appraiser is analyzing foreclosure rates in competing market areas. What USPAP Rule would defiitely NOT apply to this service? a) Competancy Rule b) Ethics Rule c) Scope of Work Rule d) Jurisdictional Exception Rule - CORRECT ANSWER C) Scope of Work Rule Which of the following would NOT be appropriate for an appraiser to issue a Restricted Appraisal Report? a) The other intended users cannot be named individually and need to be identified by type. b) The client (and, if applicable, named other intended users) do not need the level of information required in an Appraisal Report c) The intended use of the appraisal is appropriate for a report which may not contain supporting rationale for all of the opinions and conclusions set forth in the report. d) The client understands the limited utility of this reporting option. - CORRECT ANSWER a) The other intended users cannot be named individually and need to be identified by type. Appraisers make suggestions for changes to USPAP, but who else suggests changes? a) Members of the general public b) Government agencies c) All of these answers d) Users of appraisal services - CORRECT ANSWER c) All of these answers In the COMPETENCY RULE the phrase "prior to accepting an assignment" was changed to what revised wording in the 2020-2021 USPAP? a) prior to taking an assignment b) prior to procuring an assignment c) prior to agreeing to perform an assignment d) prior to receiving an assignment - CORRECT ANSWER c) prior to agreeing to perform an assignment Under what condition can an appraiser perform a desk review on an appraisal report for a property located in a different state? a) only when the appraiser is licensed or certified in the state where the property is located b) when the appraiser has the same or higher level of knowledge and experience than the appraiser who performed the appraisal that is now under review c) when the appraiser has the knowledge and experience to complete the assignment competently based on the assignment's scope of work d) under a hypothetical condition that he or she has the knowledge and experience to complete the review competently - CORRECT ANSWER c) when the appraiser has the knowledge and experience to complete the assignment competently based on the assignment's scope of work What is true when a party receives a copy of an Appraisal Report in order to satisfy disclosure requirements? a) The party becomes an intended user of the appraisal. b) The party does not become an intended user of the appraisal unless the appraiser has idenfified the party as an intended user. c) It creates a new assignment. d) The appriaser is obligated to add a supplement identifying the added party. - CORRECT ANSWER b) The party does not become an intended user of the appraisal unless the appraiser has idenfified the party as an intended user. How is the credibility of an appraiser's assignment results always measured? a) in the context of the intended use b) whether the appraiser is worthy of belief c) in cash or the equivalent of cash d) by the laws and regulations applicable to the assignment. - CORRECT ANSWER a) in the context of the intended use Under what conditions does USPAP permit an appraiser to use a Restricted Appraisal Report? a) when the appraiser has restricted the intended users to a specified group b) when the client is the only intended user; or, when additional intended users are identified by name c) when the client is the only indtended user; or, when additional intended users are identified by type d) when the client is the only intended user - CORRECT ANSWER b) when the client is the only intended user; or, when additional intended users are identified by name What is the ASB's position on the appraiser's obligation to disclose research and anaalyeses NOT performed in an appraisal assignment? a) The appraiser must disclose only the research and analyses performed in the assignment. b) The ASB has no position on this issue and gives the appraiser the flexibility to decide whether or not to disclose research and analyses not performed in an appraisal assignment. c) Whenever such disclosure is necessary for intended users to understand the report properly and not be misled and appraiser has an obligation to disclose. d) The appraiser must always disclose research and analyses not performed in an appraisal assignment regardless of client expectation. - CORRECT ANSWER c) Whenever such disclosure is necessary for intended users to understand the report properly and not be misled and appraiser has an obligation to disclose. An appraiser may use any combination of a property inspection, documents, such as a legal description, address, map reference, copy of a survey or map, proper;ty sketch, or photographs, or other information to identify a) relevant characteristics of the appraised property. b) support for adjustments in the sales comparison approach. c) scope of work for the assignment d) an extraordinary assumption used in the assignment. - CORRECT ANSWER a) relevant characteristics of the appraised property. What entity is continually working to develop, interpret and ament USPAP? a) Appraisal Subcommittee (ASC) b) Appraisal Qualifications Board (AQB) c) Board of Trustees of the Appraisal Foundation (BOT) d) Appraisal Standards Board (ASB) - CORRECT ANSWER d) Appraisal Standards Board (ASB) What is expressed when an appraiser addresses exposure time in an appraisal report? a) a prospective statement b) an estimate of fact c) an extraordinary assumption d) an opinion - CORRECT ANSWER d) an opinion The National Association of REALTORS is an Affiliate Sponsor of what organization? a) American Society of Appraisers b) National Association of Independent Fee Appraisers c) Appraisal Institute d) The Appraisal Foundation - CORRECT ANSWER d) The Appraisal Foundation The Uniform Standards of Professional Appraisal Practice (USPAP) receives its authority a) through implementation of its legislation requiring compliance to USPAP b) through adoption, citation, or implementation of USPAP by government agencies through regulation or administrative actions. c) by appraisers willing to comply with USPAP. d) by advertising USPAP's ethical rules and standards in trade journals. - CORRECT ANSWER b) through adoption, citation, or implementation of USPAP by government agencies through regulation or administrative actions. In the Exposure Draft process the ASB allows for public comment to take place over what time period? a) 30 days b) 10 days c) 90 days d) 45 days - CORRECT ANSWER a) 30 days Exclusive to the Restricted Appraisal Report option, what two reporting requirements must the appraiser clearly and conspicuously disclose? a) the appraisal techniques and appraisal methods employed b) the use restriction and the warning about supporting rationale c) extraordinary assumptions and hypothetical conditions d) the effective date of the appraisal and the date of the report - CORRECT ANSWER b) the use restriction and the warning about supporting rationale After submitting her report, the client asked the appraiser to perform additional work by adding several comparable sales. What action should the appraiser take? a) This request requires the appraiser to treat it as a new assignment. b) The appraiser must deny the request due to appraiser independence. c) Completing the request would bias the appraiser's assignment results. d) This is a scope of work issue and the appraiser can provide the additional sales. - CORRECT ANSWER d) This is a scope of work issue and the appraiser can provide the additional sales. An appraisal is based on a "what if" scenario. How does USPAP identify an assignment condition that is contrary to what exists? a) extraordinary assumption b) general assumption c) hypothetical condition d) conditional exemption - CORRECT ANSWER c) hypothetical condition Identify the statement that most acccurately describes the mission of The Appraisal Foundation. a) a member organization dedicated to appraisal ethics and standards b) an enforcement agency for appraisal ethics and standards c) a consortium of eight appriasal organizations d) a nonprofit privaate organization established for educational and scienfific purposes. - CORRECT ANSWER d) a nonprofit privaate organization established for educational and scienfific purposes. The Board of Trustees (BOT) of The Appraisal Foundation (TAF) has three primary functions. The first is to ensure that TAF is adequately funded and the second is to monitor the performance and oversight of TAF and its Boards and Advisory Councils. What is the other function? a) to establish appraiser qualification criteria for the states b) to lobby Congress on behalf of appraisers c) to develop and update USPAP d) to appoint members to the AQB and the ASB - CORRECT ANSWER d) to appoint members to the AQB and the ASB An entity that is a nonprofit organization with an interest in valuation, such as the National Association of REALTORS, is best identified as what type of sponsor of The Appraisal Foundation? a) Appraisal Sponsor b) International Sponsor c) Affiliate Sponsor d) Corporate Sponsor - CORRECT ANSWER c) Affiliate Sponsor In considering the components of USPAP, how does the Statement on Appraisal Standards fit in? a) The Statements are now considered as other communications by the ASB b) The Statements are one of the five component sections of USPAP, although there are no currently active Statements. c) The Statements are no longer part of USPAP d) Two new Statements on Appraisal Standards have been added to the 2020-2021 USPAP - CORRECT ANSWER b) The Statements are one of the five component sections of USPAP, although there are no currently active Statements. A unique partnership exists with The Appraisal Foundation and what other entities? a) FDIC and HUD b) TAF Sponsors and Councils c) AQB and ASB d) Appraisal Subcommittee (ASC) and state regulators - CORRECT ANSWER d) Appraisal Subcommittee (ASC) and state regulators Who is responsible for developing minimum criteria involving education and experience for state licensed and certified real property appraisers? a) the Board of Trustees (BOT) of The Appraisal Foundation b) the Appraisal Subcommittee (ASC) c) the Appraisal Standards Board (ASB) d) the Appraiser Qualifications Board (AQB) - CORRECT ANSWER d) the Appraiser Qualifications Board (AQB) Who is responsible for developing and revising the Uniform Standards of Professional Appraisal Practice (USPAP)? a) the Appraisal Standards Board (ASB) b) the Appraisal Qualifications Board (AQB) c) the Board of Trustees of the Appraisal Foundation (BOT) d) the Appraisal Subcommittee (ASC) - CORRECT ANSWER a) the Appraisal Standards Board (ASB) What do appraisal organizations, government agencies, client groups, work groups, appraisers, and members of the public have in common? a) They have the same agenda on valuation issues. b) They all may join as members of The Appraisal Foundation. c) They agree on the ethical standards for appraisers. d) They all may submit inquiries and concerns to the Appraisal Standards Board. - CORRECT ANSWER d) They all may submit inquiries and concerns to the Appraisal Standards Board. Identify one of the ways USPAP receives authority in various jurisdictions. a) TAF implements its own legislation requiring compliance to USPAP. b) USPAP is adopted, cited, or implemented by government agencies in regulation or administrative actions. c) TAF advertises the ethical rules and standards in trade journals. d) TAF requires its members to comply with USPAP - CORRECT ANSWER b) USPAP is adopted, cited, or implemented by government agencies in regulation or administrative actions. In addition to appraisers, who else provides suggestions on changes to USPAP? a) users of appraisal services b) all of these answers c) employees of government agencies d) TAF Sponsors and Advisory Councils - CORRECT ANSWER b) all of these answers If an issue arises during the exposure draft process that requires specialized expertise that the ASB Members may not possess, what option does the Board have? a) Must table the issue until the next USPAP cycle. b) Engage a Task Force or Working Group to review the issue. c) Invoke the COMPETENCY RULE and siclose in the exposure draft. d) Do the best they can with the knowledge and expertise on the board. - CORRECT ANSWER b) Engage a Task Force or Working Group to review the issue. What is the minimum number of days that the ASB permits for public comment on an Exposure Draft? a) There is no minimum b) 90 days c) 30 days d) 10 days - CORRECT ANSWER c) 30 days The word "rationale" is specific to what type of ASB communication? a) an Advisory Opinion b) an Exposure Draft c) an Official reprimand d) None of the listed answers - CORRECT ANSWER b) an Exposure Draft What specific ASB communication is released for public comment that includes all the proposed changes to USPAP? a) an Advisory Opinion b) an Exposure Draft c) an Appraisal Report d) a Statement on Standards - CORRECT ANSWER b) an Exposure Draft When reviewing comment letters received on Exposure Drafts, what does the ASB focus on? a) the source of the comment b) the reasoning and insight presented in the letter, rather than its source c) the frequency of the comment d) none of the answers - CORRECT ANSWER b) the reasoning and insight presented in the letter, rather than its source Intentionally of unintentionally misrepresenting, misstating, or concealing relevant facts or conclusions in an appraisal define what new USPAP term? a) gross negligence b) misleading c) fraud d) error of omission - CORRECT ANSWER b) misleading What does readily observable mean in USPAP's definition of Personal Inspection? a) Crawl spaces and attics are excluded. b) An interior inspection of the improvements is required c) It's limited to observations made without the use of special testing or equipment d) The appraiser must inspect 100% of the property. - CORRECT ANSWER c) It's limited to observations made without the use of special testing or equipment To avoid misleading communication, what must an appraiser's support include to ensure credible assignment results? a) statistical data b) all three approaches to value c) relevant evidence and logic d) certification and limiting conditions statement - CORRECT ANSWER c) relevant evidence and logic What physical characteristic stated in a residential appraisal report would be identified as assignment results? a) The carpet is new. b) The dwelling was constructed in 1997. c) The property site is well landscaped. d) The gross living area is 3,200 feet. - CORRECT ANSWER c) The property site is well landscaped. USPAP defines the appraiser's identification of the type and definition of value in the first step of the appraisal process with what term? a) Objective of the assignment b) Assignment condition c) Assignment element d) Purpose of the assignment - CORRECT ANSWER c) Assignment element The date to which an appraiser's analyses, opinions, and conclusions apply partially defines what term? a) date of the report b) date of submission to the client c) effective date d) signature date - CORRECT ANSWER c) effective date USPAP allows an appraiser to convey an opinion of highest and best use prior to transmitting an appraisal report: a) True b) False - CORRECT ANSWER a) True Which of the following are NOT considered to be assignment results? a) the appraiser's analysis and opinions of comparable listings for the subject property b) an opinion of the highest and best use of the subject c) all opinions and conclusions developed that are not appraisal or appraisal reveiw d) a description of the physical characteristics of the subject - CORRECT ANSWER d) a description of the physical characteristics of the subject A description of the physical characteristics of the appraised property: a) is not considered to be assignment results b) is considered to be outside of appraisal practice c) must be kept condidential in all assignments d) must be verified with public records if the data is available through the normal course of business. - CORRECT ANSWER a) is not considered to be assignment results Which of the following best describes the subject of an appraisal review assignment? a) real property, personal property or an intangible asset b) the appraiser of the work under review c) a report, part of a report, a workfile, or some combination of these d) a real estate interest - CORRECT ANSWER c) a report, part of a report, a workfile, or some combination of these According to the Confidentiality section of the ETHICS RULE, an appraiser must not disclose confidential information or ____________________________________________________ to anyone other than the five parties identified in the Rule. a) any information in the appraisal report b) the appraiser's value opinion or conclusion c) the review appraiser's value opinion d) assignment results - CORRECT ANSWER d) assignment results When must an appraiser comply with USPAP? a) when either the service or the appraiser is requuired by regulation b) all of these answers c) when wither the service or the appraiser is required by law d) when either the service or the appraiser is required by agreement with the client - CORRECT ANSWER b) all of these answers Which USPAP term best describes the act or process of developing an opinion about the quality of another appraiser's work that was performed as part of an appraisal or appraisal review assignment? a) valuation service b) appraisal review c) administrative review d) appraisal - CORRECT ANSWER b) appraisal review What change did the ASB make to the definition of "real property" in the 2020-2021 USPAP? a) The ASB added new content to the Comment clarifying the legal differences of real property from real estate. b) The ASB deleted the phrase "inherent in the ownership." c) The ASB deleted the Comment. d) The ASB added intangible assets to the definition. - CORRECT ANSWER c) The ASB deleted the Comment. The question of "what is reasonable exposure time?" should cause the appraiser to consider what other question? a) Is the market's 120-day forecast stable? b) For what kind of property at what value range? c) For what isolated period of time? d) What type and definition of value? - CORRECT ANSWER ) For what kind of property at what value range? What best describes an intangible article in a personal property appraisal assignment? a) copyrights b) plans for installation art c) machinery and equipment d) patents - CORRECT ANSWER b) plans for installation art What USPAP definition changed a key phrase from "estimate of fact" to "actual or estimated"? a) exposure time b) price c) cost d) value - CORRECT ANSWER c) cost What significant addition was included in the definition of personal property based on changes in the real world marketplace? a) tangible personal property b) real estate c) real property d) intangible personal property - CORRECT ANSWER d) intangible personal property Data, information, and documentation necessary to support the appraiser's opinions and conclusions and to show compliance with the USPAP best define what term? a) assignment results b) scope of work c) workfile d) certification - CORRECT ANSWER c) workfile What type of work as defined in ASPAP is performed by both appraisers and by others? a) valuation service b) appraisal review c) appraisal practice d) mass appraisal - CORRECT ANSWER a) valuation service Distinguish between physical charactaristics and assignment results: 1. Living area is 2,000 sf 2. Property is in good condition 3. The property has functional problems 4. The improvements were constructed in 2005. 5. The carpet is new. 6. 2nd floor has 2 bedrooms, no baths. 7. Well Landscaped 8. Poor floor plan 9. Carpet needs replacing. 10. Walls are painted pink, yellow, purple. - CORRECT ANSWER Assignment Results: 2,3,7,8 & 9 Physical characteristics: 1,4,5,6, & 10 Distinguish between physical characteristics and assignment results: 1. Building contains 10,316 sq ft 2. There is a low land to building ratio 3. The mechanicals are in fair condition 4. The hear/AC equipment is 30 years old 5. Parking acccess is poor 6. There is 2,000 SF of mazzanine office space 7. There are 4 parking spaces per 1,000 ft of office area 8. The warehouse ceiling height is 14 feet 9. The building has functional propblems. 10. The building is a Class A construction according to Marshall & Swift description. - CORRECT ANSWER Physical Characteristis: 1, 4, 6, 7, 8, 10 Assignment results: 2,3,5,9 Intentionally or unintentionally misrepresenting, misstating or concealing relevant facts or conclusions in an appraisal define what new USPAP term? a) fraud b) error of omission c) gross negligence d) misleading - CORRECT ANSWER d) misleading USPAP defines the appriaser's identification of the type and definition of value in the first step of the appraisal process with what term? a) assignment condition b) objective of the assignment c) purpose of the assignment d) assignment element - CORRECT ANSWER d) assignment element To avoid misleading communication, what must an appraiser's support include to ensure credible assignment results? a) all three approaches to value b) certification and limiting conditions statement c) statistical data d) relevent evidence and logic - CORRECT ANSWER d) relevent evidence and logic The date to which an appraiser's analyses, opinions and conclusions apply partially defines what USPAP term? a) date of the report b) date of submission to the client c) effective date d) signature date - CORRECT ANSWER c) effective date Which of the following best describes the subject of an appraisal review assignment? a) the appraiser of the work under review b) a real estate interest c) real property, personal property or an intangible asset d) a report, part of a report, a workfile, or some combination of these. - CORRECT ANSWER d) a report, part of a report, a workfile, or some combination of these. What change did the ASB make to the definition of "real property" in the 2020-2021 USPAP? a) The ASB deleted the Comment. b) The ASB deleted the phrase "inherent in ownership". c) The ASB added intangible assets to the definition. d) The ASB added new content to the Comment clarifying the legal differences of real property from real estate. - CORRECT ANSWER a) The ASB deleted the Comment. Which of the following best defines an appraiser? a) years of experience as a practicing appraiser b) professional appraiser designation c) state licensed or certified d) competent, independent, impartial and objective - CORRECT ANSWER d) competent, independent, impartial and objective An appraiser's initial planned scope of work was different from the scope of work that the appraiser disclosed in the appraisal report. Is this acceptable practice under USPAP? a) No, both the initial and the actual scope of work performed must be disclosed in the appraisal report. b) No, the scope of work cannot change after the assignment has been accepted. c) Yes, the initial scope of work is always different than the final scope of work. d) Yes, the appraiser must disclose the actual scope of work performed. - CORRECT ANSWER d) Yes, the appraiser must disclose the actual scope of work performed. In judging an appraiser's scope of work, how is the credibility of the appraiser's assignment always measured? a) whether the appraiser's experience is worthy of belief b) in cash or the equivalent of cash c) in the context of the intended use d) by the Standards Rules applicable to the assignment - CORRECT ANSWER c) in the context of the intended use A reviewer cited an infraction on an appraiser's nararative appraisal report because it did not include a heading "Scope of Work". The appraiser claims the reviewer erred on this point as the report did disclose the scope of work performed throughout the report. Who is right? a) The appraiser is right because there is no requirement for the scope of work description to be in a separate section of the appraisal report. b) The appraiser is right because there is no requirement to disclose the appraiser's scope of work. c) The reviewer is right because the appraisal report must include a specific "Scope of Work" section where it is disclosed. d) Both erred because the scope of work must be disclosed in the engagement contract: not the appraisal report. - CORRECT ANSWER a) The appraiser is right because there is no requirement for the scope of work description to be in a separate section of the appraisal report. After reading an appraiser's report, an administrative law judge, who was identified as an intended user of the report, was confused as to the extent of analysis performed in the appraisal. What error did the appraiser potentially commit in this instance? a) The scope of work must consider laws and regulations b) The appraiser did not commit an error in this instance. c) The appraisal report must contain enough information to allow the intended users to understand the scope of work the appraiser performed. d) The scope of work disclosed in the appraisal report must be the actual work performed. - CORRECT ANSWER c) The appraisal report must contain enough information to allow the intended users to understand the scope of work the appraiser performed. Name the five competency factors in which an appraisal reviewer must have familiarity, although competency is not limited to these 5 factors: - CORRECT ANSWER -Specific type of property or asset -Market -Geographic area -Analytic method -Applicable laws, regulations and guidelines. What chaange did the ASB make to the "perfection is i mpossible to attain" content in USPAP? a) deleted the content from the ETHICS RULE b) removed the content from the COMPETENCY RULE and placed it in the SCOPE OF WORK RULE c) moved the content from the reporting Standards to the new Advisory Opinion 38 d) moved the content from the development Standards to the COMPETENCY RULE - CORRECT ANSWER d) moved the content from the development Standards to the COMPETENCY RULE Why did the ASB revise the wording "prior to accepting an assignment" in the COMPETENCY RULE? a) required by the ASC for legal purposes of enforcement b) to replace the condusing language c) to make it clear that competency is required prior to accepting the assignment d) for consistency with the USPAP definition of assignment. - CORRECT ANSWER d) for consistency with the USPAP definition of assignment. At what point must the appraiaser have the necessary knowledge and experience to satisfy the COMPETENCY RULE in a specific assignment? a) no point in time is specified in the COMPETENCY RULE b) prior to agreeing to perform the assignment c) by completion of the assignment d) at the time the assignment contract is signed - CORRECT ANSWER c) by completion of the assignment What is not required to meet competency according to the COMPETENCY RULE? a) competency in a market b) competency that requires perfection c) competency in a specific type of property or asset d) competency in an analytical method - CORRECT ANSWER b) competency that requires perfection STANDARD 3 for appraisal reviews lists five coompetency factors isntead of the six idenfified in the COMPETENCY RULE. Which factor is absent for an appraisal review? a) specific type of property or asset b) geographic area c) intended use d) analytic method - CORRECT ANSWER c) intended use If an opinion of value is to be based on non-market financing, what must an appraiser do? a) Provide a cash equivalent alternative value. b) Not identify it as market value. c) Identify the terms of such financing and any influences on value. d) Identify the definition and source of the non-market financing. - CORRECT ANSWER c) Identify the terms of such financing and any influences on value. An assignment involves a proposed renovation and the appraiser's conclusion is based on a current value as if the renovation is already complete. What term best applies to this assignment condition that an appraiser mus identify under STANDARD 1? a) hypothetical condition b) jurisdictional exception c) general assumption d) extraordinary assumption - CORRECT ANSWER a) hypothetical condition Which assignment element in problem identification often can't be entirely determined prior to the appraiser agreeing to perform the assignment? a) identifying the effective date b) identifying the client and any other intended users c) identifying the assiginment condidtions d) identifying the subject and its relevant characteristics - CORRECT ANSWER d) identifying the subject and its relevant characteristics What content did the ASB change in Standards Rule 1-5 which covers sale agreements, options, listings, and prior sales? a) extended length of the reporting period to 5 years prior to the effective b) references to the reporting requirements in STANDARD 2 c) deleted the reference to market value so that it includes all value types d) no changes were made for the 2020-2021 USPAP for this Standards Rule - CORRECT ANSWER b) references to the reporting requirements in STANDARD 2 What two areas of the appraisal process are addressed in Standards Rule 1-2? a) approaches to value and reconciliation b) general development requirements and approaches to value c) problem identification and scope of work d) market analysis and highest and best use - CORRECT ANSWER c) problem identification and scope of work What report options are identified in Standard 2? a) Narratiave Appraisal Report and Form Appraisal Report b) Complete Appraisal Report and Summary Appraisal Report c) Appraisal Report and Restricted Appraisal Report d) General Appraisal REport and Residential Appraisal Report - CORRECT ANSWER c) Appraisal Report and Restricted Appraisal Report What is true about an appraiser who uses labels such as "evaluation" or "analysis" to identify the report type? a) such labels are no longer permitted under the 2020-2021 USPAP reporting requirements b) using such labels does not exempt an appriaser from adherence to USPAP's reporting c) the appraiser can only use such labels for a Restricted Appraisal Report d) such labels can be used in lieu of Appraisal Report and Restricted Appraisal Report. - CORRECT ANSWER b) using such labels does not exempt an appriaser from adherence to USPAP's reporting What change was made to the content addressing the 10 certification statements in Standards Rule 2-3 for the 2020-2021 USPAP? a) A certification statement on prior services was added b) The phrase "occurrence of a subsequent event" was removed. c) The wording "agreement to perform" was used in lieu of "acceptance" d) The term "conclict of interest" was changed to "bias". - CORRECT ANSWER c) The wording "agreement to perform" was used in lieu of "acceptance" How much information must an appraisal report contain? a) the maximum amount for an Appraisal Report b) enough to show the appraiser's competency in the development process c) the least amount for a Restricted Appraisal Report d) sufficient for the intended user(s) of the appraisal to understand the report properly - CORRECT ANSWER d) sufficient for the intended user(s) of the appraisal to understand the report properly What must an appraiser do when an assignment requires the use of a form with a certification that does not inlude all of the certification elements in Standards Rule 2 -3? a) The appraiser cannot agree to perform the assignment as this would constitute an unacceptable assignment condition. b) The appraiser provided a signed and dated certification supplement that states it supersedes the certification printed on the form. c) The appraiser must use the certification on the form as it is, since additions cannot be made. d) The appraisal report must contain a supplemental certification, which includes the remaining required certification elements. - CORRECT ANSWER d) The appraisal report must contain a supplemental certification, which includes the remaining required certification elements. An appraiser must analyze all current agreements of sale, options, and ______________________________ of the subject property as of the effective date of the appraisal. a) listings b) leases c) pending offers d) property inspection reports - CORRECT ANSWER a) listings Which of the following would meet the certification requirement for a personal inspection of the subject property? a) aerial photography by a drone taken by the appraiser or someone else b) an appraiser's viewing of photographs of the property taken by a co-worker c) viewing multiple listing photos and data of the subject property d) an in-person visit to the property by the appraiser - CORRECT ANSWER d) an in-person visit to the property by the appraiser What best identifies the reason for the retirement of Advisory Opinions 11 and 12 which cover the content and use of the Appraisal Report options? a) The content of the AOs was no longer beneficial to practicing appraisers. b) There is currently only one reporting option in STANDARD 2. c) The AOs reached their mandatory retirement and the ASB did not extend them. d) The new Advisory Opinion 38 replaced their content. - CORRECT ANSWER d) The new Advisory Opinion 38 replaced their content. To comply with Standards Rule 1-5, an appraiser must analyze the following as of the effective date of the appraisal EXCEPT a) a current listing of the subject property b) a current agreement to purchase the subject property c) a prior sales of the subject property within the three years prior to the effective date. d) prior listings of the subject property within three years preceding the effective date - CORRECT ANSWER d) prior listings of the subject property within three years preceding the effective date What types of assignment is an appriaser performing when "incorporates by reference" is an option for the appraiser to consider? a) appraisal of intangible assets b) appraisal for an easement in gross c) appraisal involving assemblage d) update of a prior appraisal - CORRECT ANSWER d) update of a prior appraisal An appraiser was asked by a client to provide sales data of all homes located within a one-mile radius of a specific address. What type of valuation service is this? a) as appraisal review b) a service outside of appraisal practice c) an appraisal if a value conclusion is provided d) an appraisal if no value conclusion is provided - CORRECT ANSWER c) an appraisal if a value conclusion is provided Which of the following would not be an example of significant appraisal assistance? a) estimating accrued depreciation b) taking photographs of the subject property c) inspection of the subject property and comparable properties d) forecasting income and expenses - CORRECT ANSWER b) taking photographs of the subject property What must an appraiser first do if she cannot gather sufficient information about the property's relevant characteristics from the third-party property inspection? a) Complete the assignment and disclose the third-party assistance in the certification b) Seek additional information c) Use a hypothetical condition d) Immediately withdraw from the assignment - CORRECT ANSWER b) Seek additional information In an appraisal report, how must an appraiser identify other intended users beyond the client? a) by name only b) by acknowledging that there are intended users c) by general groupings d) by name or type - CORRECT ANSWER d) by name or type What was the suggested outcome of the illustration in AO-28 that involved Chinese Imperial Qianlong porcelain vases? a) The appraiser withdrew from the assignment due to lack of competency in property type b) The appraiser must have access to the certificate of authenticity for the vases or withdraw from the assignment c) The appraiser should alter the scope of work to appraise only the vases that are available for inspection. d) The appraiser should appraise all the vases contingent on a hypothetical condition. - CORRECT ANSWER c) The appraiser should alter the scope of work to appraise only the vases that are available for inspection. Which of the following assignments would be a good candidate for an appraiser using a Restricted Appraisal Report? a) a case going to tax court b) a conservation easement that meets IRS requirements c) a federally related transaction with a financial institution d) a preliminary hearing to dispute property taxes at the assessor's office. - CORRECT ANSWER d) a preliminary hearing to dispute property taxes at the assessor's office. Which type of report requires the appraiser to make work file retrieval arrangements with the client? a) Appraisal Report b) Restricted Appraisal Report c) USPAP prohibits such arrangements for any report options d) USPAP neither requires nor prohibits such arrangements for any report option. - CORRECT ANSWER d) USPAP neither requires nor prohibits such arrangements for any report option. What is meant by the phrase "the substantive content of a report determines its compliance"? a) Some assignments don't need to meet the reporting requirements in USPAP b) The appraiser's report ;must state that it has met the substantive content rule c) What is in the report is what determines whether it met the requirements for the intended use. d) The ASB has not defined what this phrase means. - CORRECT ANSWER c) What is in the report is what determines whether it met the requirements for the intended use Under what conditions does UPSPAP permit a Restricted Appraisal Report? a) when the appraiser has restricted the intended users to a specified group b) when the client is the only intended user c) when the client is the only intended user; or, when additional intended users are identified by name or type d) when the client is the only intended user; or, when additional intended users are identified by name - CORRECT ANSWER d) when the client is the only intended user; or, when additional intended users are identified by name What was the prime reason the ASB created Advisory Opinion 38, Content of an Appraisal Report and Restricted Appraisal Report? a) to present content requirements not addressed in the reporting Standards b) to reflect the changes to STANDARD 2 which then caused the necessary retirement of Advisory Opinions AO-11 and AO-12 c) to clarify the difference between a Complete Appraisal Report and an Summary Appraisal Report d) to compare the requirements for an appraisal review report and a mass appraisal report - CORRECT ANSWER b) to reflect the changes to STANDARD 2 which then caused the necessary retirement of Advisory Opinions AO-11 and AO-12 What term connects with the phrase that an appraiser's assignment results are always measured in the context of the intended use? a) confidentiality b) impartiality c) competence d) credibility - CORRECT ANSWER d) credibility The client requested the appraiser to complete a cost approach after the appraiser had submitted the appraisal report. How should the appraiser handle the client's request? a) The appraiser must deny the request due to appraiser independence. b) This is a scope of work issue and the appraiser can provide the additional approach if appropriate. c) This request requires the appraiser to treat it as a new assignment. d) Completing the request would bias the appraiser's assignment results. - CORRECT ANSWER b) This is a scope of work issue and the appraiser can provide the additional approach if appropriate. A hypothecial condition ________________________________________ and an extraordinary assumption ____________________________________________ as of the effective date. a) is retrospective; is prospective b) is a what-if scenario; is uncertain information c) is uncertain information; is a what-if scenario d) is false; doesn't exist - CORRECT ANSWER b) is a what-if scenario; is uncertain information When applicable law or regulation requires that the JURISDICTIONAL EXCEPTION RULE be applied, how does if affect the appraiser's assignment? a) The appraiser only needs to comply with the PREAMBLE, DEFINITIONS, and the RULES. b) It precludes an appraiser from complying with a part of USPAP. c) It exempts the appraiser from complying with USPAP d) It excludes the reporting requirements of USPAP. - CORRECT ANSWER b) It precludes an appraiser from complying with a part of USPAP. Dumping a box of puzzle pieces on a table is an analogy to what appraisal issue? a) when an appraiser creates a series of errors b) problem identification c) merely stating facts in the report without explanation or analysis d) the appraisal process - CORRECT ANSWER c) merely stating facts in the report without explanation or analysis In a new appraisal assignment which prior services regarding the subject property must be disclosed within the three-year period immediately preceding the agreement to perform the assignment? a) only those services that involved appraisal practice b) valuation services only c) appraisals and appraisal reviews performed by the appraiser d) any services performed by the appraiser, as an appraiser or in any other capacity - CORRECT ANSWER d) any services performed by the appraiser, as an appraiser or in any other capacity A supervisory appraiser and a trainee appraiser are performing an appraisal assignment together. If the trainee appraiser only takes photographs of the subject property, how should the trainee's work be identified in the appraiser's certification? a) The work must be disclosed in the certification but not as significant appraisal assistance. b) The trainee's work should not be disclosed as significant appraisal assistance. c) This is significant appraisal assistance that must be disclosed. d) Any work performed by the trainee must be disclosed because the trainee is licensed. - CORRECT ANSWER b) The trainee's work should not be disclosed as significant appraisal assistance. An accountant determines the book value on an asset; a broker establishes a listing price for a property; an appraiser provides an opinion of value. These are all examples of: a) brokering b) appraisal practice c) competitive market analysis d) valuation service - CORRECT ANSWER d) valuation service Based on the "ovals" illustration in Advisory Opinion 21, USPAP Compliance, what type of service does the inner most oval address? a) valuations services performed by appraisers and by others b) appraisal only c) appraisal and appraisal review in which STANDARDS 1 - 10 apply d) all services within appraisal practice - CORRECT ANSWER c) appraisal and appraisal review in which STANDARDS 1 - 10 apply USPAP applies only to appraisal practice and to: a) real estate brokers and agents b) valuation services c) individuals who are acting in the capacity of an appraiser d) non-licensed individuals working in an appraisal office. - CORRECT ANSWER c) individuals who are acting in the capacity of an appraiser What are physical characteristics not considered to be assignment results? a) Physical characteristics are factual and thus not included in the appraisal process b) USPAP doesn't apply to physical characteristics c) They present factual information rather than the appraiser's opinion d) They present information that is confidential. - CORRECT ANSWER c) They present factual information rather than the appraiser's opinion What two aspects of the appraisal process are distinctly different yet are considered inseparable partners from the perspective of STANDARD 2? a) intended use and intended user b) appraisal development and appraisal reporting c) extraordinary assumptions and hypothetical conditions d) written and oral communication - CORRECT ANSWER b) appraisal development and appraisal reporting What best describes the effective date in an appraisal? a) the date the report was signed b) the date of the report c) the date of value d) the date the report was transmitted to the client - CORRECT ANSWER c) the date of value As part of the development process an appraiser must identify the type of value and what else in this specific assignment element? a) the intended users of the identified value b) the intended use of the identified value c) the definition of the identified value d) the effective date of the identified value - CORRECT ANSWER c) the definition of the identified value What is true about how an appraiser must deal with various data sources and analytical tools used in the appraisal process? a) The appraiser is responsible to ensure the analytical tools used in an assignment result in meeting the client's value expectations. b) The appraiser has limited responsibility for the output of appraisal software tools used in an assignment c) The appraiser has a responsibility to protect public trust in using data sources and analysis tools. d) The appraiser doesn't need to be knowledgeable in statistical analysis to ethically use regression analysis in an assignment. - CORRECT ANSWER c) The appraiser has a responsibility to protect public trust in using data sources and analysis tools. An individual acting in the capacity of an appraiser is analyzing foreclosure rates in competing market areas. What USPAP rule would definitely NOT apply to this service? a) ETHICS RULE b) SCOPE OF WORK RULE c) COMPETENCY RULE d) JURISDICTIONAL EXCEPTION RULE - CORRECT ANSWER b) SCOPE OF WORK RULE What would be an example of significant appraisal assistance? a) inspection of the subject property and comparable properties b) use of an environmental expert to determine wetland boundaries c) taking photographs of the subject property d) measuring the subject property. - CORRECT ANSWER a) inspection of the subject property and comparable properties Under what conditions can an appraiser perform a desk review on an appraisal report for a property located in a different state? a) only when the appraiser is licensed or certified in the state where the property is located b) when the appraiser has the knowledge and experience to complete the assignment competently based on the assignment's scope of work c) when the appraiser has the same or higher level of knowledge and experience than the appraiser who performed the appraisal that is now under review d) under a hypothetical condition that he or she has the knowledge and experience to complete the review competently - CORRECT ANSWER b) when the appraiser has the knowledge and experience to complete the assignment competently based on the assignment's scope of work The Board of Trustees (BOT) appoints members to it's boards, monitors performance of its boards and advisory councils, and what other primary function does the BOT perform? a) develops and updates the USPAP b) establishes appraiser qualification criteria for the states c) lobby congress on behalf of appraisers d) ensures that the Appraisal Foundation is adequately financed - CORRECT ANSWER d) ensures that the Appraisal Foundation is adequately financed A nonprofit 0private organization established for educational and scientific purposes describes the mission of what appraisal-related entity? a) Federal Financial Institutions Examinations Council b) Appraisal Subcommittee c) The Appraisal Foundation d) Consortium of Appraisal Organizations - CORRECT ANSWER c) The Appraisal Foundation What is true about an appraiser's description of the physical characteristics of the appraised property? a) they must be verified with public records if t he data is available through the normal course of business b) they are confidential information c) they are not assignment results d) they are treated as outside of appraisal practice - CORRECT ANSWER c) they are not assignment results Which publication does the Appraisal Standards Board (ASB) use to communicate proposed changes to USPAP? a) Advisory Opinions b) Exposure Drafts c) Statements on Appraisal Standards d) Q & As - CORRECT ANSWER b) Exposure Drafts What is expressed when an appraiser addresses exposure time in an appraisal report? a) an estimate of fact b) an opinion c) a prospective statement d) an extraordinary assumption - CORRECT ANSWER b) an opinion The appraisal assignment requires a value with an effective date at stabilized occupancy which is projected to be 120 days from today. What assignment condition is required for the prospective value? a) a hypothetical condition b) a general assumption c) an extraordinary assumption d) a jurisdictional exception - CORRECT ANSWER c) an extraordinary assumption In an appraisal assignment in which the client has requested anonymity as appraiser must exercise extreme care in what aspect? a) identifying the client due to confidentiality b) keeping the client's name out of the appraisal report and the work file c) because it is not permitted in a Restricted Appraisal Report d) identifying whether the request is legally permissable - CORRECT ANSWER a) identifying the client due to confidentiality In a Restricted Appraisal Report how must an appraiser identify other intended users to meet the minimum reporting requirement? a) State the identity of any other intended user(s) by type. b) State the identity of any other intended user(s) by name. c) State the identity of any other intended user(s) by group. d) State the identity of any other intended user(s) by category. - CORRECT ANSWER b) State the identity of any other intended user(s) by name. An appraiser is performing an appraisal of an apartment building and plans to physically inspect a sufficient sample number of each of the unit types in the building to form a credible opinion. What type of assignment condition should the appraiser use specific to this situation? a) extraordinary assumption b) hypothetical condition c) general assumption d) jurisdictional exception - CORRECT ANSWER a) extraordinary assumption STANDARD 1 presents the requirements to what portion of the appraisal process? a) scope of work only b) problem identification and scope of work only c) development only d) problem identification only - CORRECT ANSWER c) development only In USPAP's scope of work disclosure obligations, an appraiser _____________________________ in the Appraisal Report or Appraisal Review a) must reiterate the six elements in problem identification and how each were resolved b) must cite the USPAP definition for scope of work c) has broad flexibility and significant responsibility in the level of detail and manner of disclosing the scope of work d) must identify the primary standards Rules that apply - CORRECT ANSWER c) has broad flexibility and significant responsibility in the level of detail and manner of disclosing the scope of work [Show More]

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