7-hour National USPAP Exam 89 Questions with Answers,100% CORRECT

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7-hour National USPAP Exam 89 Questions with Answers You are reading an Advisory Opinion in the USPAP publication. Officially, Advisory Opinions are considered: - CORRECT ANSWER Other communicati... ons, and not part of USPAP A new edition of USPAP has been released. Which statement is true regarding the effective date of this new edition of USPAP? - CORRECT ANSWER The ASB determines when the edition of USPAP will be effective. Which statement is most accurate regarding the ASB's analysis of comments to exposure drafts? - CORRECT ANSWER Each member of the ASB reads and considers all comments. The ASB releases an exposure draft of proposed changes to USPAP, and you wish to provide comments. At a minimum, you will have _______ to provide comments to the ASB. - CORRECT ANSWER 30 days As the terms are used by the ASB, what is the difference between a Discussion Draft and an Exposure Draft? - CORRECT ANSWER An Exposure Draft is a formal proposal to revise USPAP, while a Discussion Draft merely solicits feedback from industry participants. You want to participate in the USPAP revision process but are busy and prefer not to travel. What is your best option? - CORRECT ANSWER Register for ASB meetings and livestream them on your computer as they are happening. Changes to USPAP may only be made after: - CORRECT ANSWER Completion of the exposure process and discussion and adoption at a public meeting Published stories alleging bias and discrimination by appraisers have appeared: - CORRECT ANSWER In news outlets across the country One common thread in news articles about appraisers is the allegation that the appraisal process is ________. Conversely, USPAP requires an appraiser to be ________. - CORRECT ANSWER Subjective, objective Fair housing laws would apply to an appraisal of _________, but not to the appraisal of ____________. - CORRECT ANSWER A duplex, a medical office When does USPAP prohibit an appraiser from using or relying on SUPPORTED conclusions about protected classes? - CORRECT ANSWER When such conclusions violate federal, state, or local laws In which of these situations might it be appropriate for an appraiser to research the number of members of a protected class and use supported conclusions regarding members of this protected class in an appraisal assignment? - CORRECT ANSWER When appraising a unit in an age-restricted (55 and older) community An appraiser issues an appraisal report on a single-unit residence that understated the GLA by 20%. Which statement is most accurate about this situation? - CORRECT ANSWER The report is misleading, and may constitute a violation of USPAP. An appraiser is valuing a residential property in a divorce case. The appraiser develops an inclination that precludes his impartiality and objectivity in the assignment, yet he proceeds with the appraisal anyway. It can accurately be stated that the appraiser is: - CORRECT ANSWER Biased An appraiser is valuing a four-unit residential property for a mortgage lender, and is accused by the lender of violating a state fair housing law in the performance of the appraisal. The appraiser responds angrily that there are thousands of laws out there and they cannot be expected to know every single law. Which statement is true regarding this situation? - CORRECT ANSWER The COMPETENCY RULE requires the appraiser to be aware of and comply with applicable laws. Which part of USPAP requires an appraiser to be aware of, and comply with, fair housing laws and regulations that may apply in an assignment? - CORRECT ANSWER The COMPETENCY RULE Which statement is true regarding the ETHICS RULE? - CORRECT ANSWER Violations of the ETHICS RULE are among the most serious, and usually result in significant sanctions by state enforcement agencies. Every time an appraiser signs a certification in an appraisal report that is in compliance with STANDARDS RULE 2-3, the appraiser is certifying: - CORRECT ANSWER Their opinions and conclusions were developed without bias Which of these actions is a good way for appraisers to continually remind themselves of their ethical obligations, including the obligation to perform without bias? - CORRECT ANSWER Re-read the certification statement each time they complete an appraisal report Which of these would be the most common type of bias of which an appraiser might be accused? - CORRECT ANSWER Unintentional bias In which phase of the appraisal process is bias most likely to occur? - CORRECT ANSWER Appraisal development An appraiser's report states, "The subject is located in a desirable neighborhood" and does not provide any further explanation regarding neighborhood characteristics. What is the potential problem with this statement? - CORRECT ANSWER The statement is unsupported and therefore could lead an accusation of bias In real property appraisal reports, many appraisers are accustomed to using terms that provide a scale, such as "good," "average," "slow," and others. Which is the best advice for appraisers who use such terminology? - CORRECT ANSWER Explain the frame of reference and put the ratings in context Appraisers who use terms that provide a scale, such as "good," "average," "high," or "low" are advised to _____________. - CORRECT ANSWER Follow the terms with a word such as "because" and explain the reason for the rating In order to identify relevant characteristics of a subject property, and to avoid accusations of bias, an appraiser should: - CORRECT ANSWER Focus on extracting factual information from the market What, if anything, is wrong with using the term "high-crime area" to describe the subject property neighborhood in an appraisal report? - CORRECT ANSWER The term may be understood by the appraiser but might be misleading to the client What is the best course of action by an appraiser to ensure that intended users and others have no perception of bias when reviewing the appraiser's work? - CORRECT ANSWER Make sure conclusions are based on factual data with context An appraiser is valuing a single-unit residence that was custom-designed for a disabled individual. The property has no steps; instead, ramps go from level to level. The hallways and doorways are wider, and the light switches are lower on the wall than typical. Plumbing fixtures are designed to accommodate wheelchair access. These special improvements were quite costly when new. Which answer best describes how an appraiser should consider these special improvements when valuing the property? - CORRECT ANSWER Research and reflect market preferences in valuing the property The Voluntary Disciplinary Action Matrix sets forth five levels of sanction, with Level V being the most serious. According to the Matrix, "Testifying as an expert without proper experience" could be a violation of the ETHICS RULE. Under what level of sanction would this offense be classified? - CORRECT ANSWER It depends on whether this is the appraiser's first, second, or third offense Which statement is true regarding the Appraisal Foundation's Voluntary Disciplinary Action Matrix (VDAM)? - CORRECT ANSWER It is intended to help states provide consistency in sanctions issued to violators. Assuming a first offense, which of these actions by an appraiser would be the most significant violation of USPAP, according to the Voluntary Disciplinary Action Matrix? - CORRECT ANSWER Using significant parts of another appraiser's report without permission Which statement is true regarding mitigating circumstances as outlined in the Voluntary Disciplinary Action Matrix? - CORRECT ANSWER Mitigating circumstances can result in a lesser sanction being issued, but they do not excuse the violation. Which of these actions by an appraiser would be considered an aggravating circumstance and would most likely result in an increased sanction for performing an appraisal that did not comply with USPAP? - CORRECT ANSWER The error was committed by a trainee and the appraiser failed to exercise due diligence in the supervision of the trainee. An appraiser is providing a market value opinion on real property and wants to determine if they are required to perform in compliance with USPAP. When must an appraiser comply with USPAP when completing this assignment? - CORRECT ANSWER When required by law, regulation, or agreement with the client A new appraiser trainee is reading USPAP. What can this individual expect to find in USPAP? - CORRECT ANSWER Required rules for ethical behavior and performance For whom is USPAP written? - CORRECT ANSWER Appraisers and users of appraisal services FAQs are an important component of the USPAP publication. Which statement best describes the role of FAQs? - CORRECT ANSWER They illustrate the applicability of USPAP in specific situations. The USPAP publication is available in both hard copy (paper) and electronic format. What is an advantage to using the electronic version of USPAP? - CORRECT ANSWER The electronic version is searchable using a word or phrase. Which of these items is not part of USPAP? - CORRECT ANSWER FAQs Advisory Opinions are part of the USPAP publication. Which statement is true regarding Advisory Opinions? - CORRECT ANSWER They illustrate applicability of standards to specific appraisal issues. In which part of an Advisory Opinion would you find the overarching question that the AO intends to answer, which often includes background information and a question (or questions)? - CORRECT ANSWER The Issue Most Advisory Opinions are similar in structure. Which of these is not a typical component of an Advisory Opinion? - CORRECT ANSWER Frequently Asked Questions In which part of an Advisory Opinion might you find an example of language that could be used in an appraisal report? - CORRECT ANSWER Illustrations Which statement is true regarding the ASB, Advisory Opinions, and the exposure process? - CORRECT ANSWER Advisory Opinions are not required to be exposed in order to be adopted or revised, but the ASB typically exposes them anyway. Which of these would be more narrowly focused? - CORRECT ANSWER An FAQ An appraiser is referencing an FAQ in the USPAP publication to solve an appraisal problem. Which statement about the advice provided in the referenced FAQ is most correct? - CORRECT ANSWER The advice presented in the FAQ does not represent the only possible solution to the issue. You are searching in the FAQs section of the USPAP publication for an FAQ on a particular topic related to appraisal reporting. Which of these is the BEST advice to help you find your FAQ? - CORRECT ANSWER The FAQs are arranged in the same order as the topics in USPAP. An appraiser is preparing an appraisal in compliance with both USPAP and an international valuation standard. What advice does the ASB provide in this situation? - CORRECT ANSWER Use the bridge document prepared jointly by ASB and IVSC An appraiser is valuing a property with an effective date of June 1, 2017. The appraiser inspected the property on December 18, 2019 and transmitted the report to the client on February 11, 2020. With which edition of USPAP must the appraiser comply in this assignment? - CORRECT ANSWER 2020-2022 Edition An appraiser is valuing a residential property. In order to develop a credible value opinion, an appraiser must: - CORRECT ANSWER Obtain sufficient information about the property's physical characteristics from reliable sources What does the ASB advise appraisers to do in order to minimize the likelihood of appraisal workfiles being damaged or destroyed in a natural disaster? - CORRECT ANSWER Create frequent backups of electronic workfiles A systematic approach may be employed to answer USPAP questions. What is the first step in this process? - CORRECT ANSWER Define the problem Paging randomly through USPAP searching for an answer, without defining the problem and creating a plan, is analogous to: - CORRECT ANSWER Wandering aimlessly through a home improvement store looking for one item You have a USPAP-related question that you need to address before you can agree to perform a very lucrative assignment. Which of these would be the most important question, that, when answered, will put you on a path to solving this USPAP-related problem? - CORRECT ANSWER Where does the answer to your question live in the USPAP publication? You are a state-credentialed appraiser and you have been offered an appraisal assignment on a complex property. You are questioning whether or not your state-issued credential will permit you to appraise the property. What is the best source to find the answer to this question? - CORRECT ANSWER Your state appraiser licensing law An appraiser is developing an appraisal on a complex, income-producing property, and wants to develop a discounted cash flow analysis. Where should the appraiser go to find information on how to develop this valuation method? - CORRECT ANSWER Appraisal textbooks Finding where the answer to your question lives in the USPAP publication is not as simple as it may first appear. Why is this? - CORRECT ANSWER The answer may live in several different parts of USPAP, or in the guidance A real property appraiser has been asked to prepare an appraisal on a two-unit residence for mortgage financing. Instead of reporting the results on a secondary market report form, the client asks the appraiser to prepare a narrative-style report. The appraiser is required by state law to comply with USPAP in this assignment. With which part or parts of USPAP does the appraiser need to comply? - CORRECT ANSWER All of the Rules in USPAP, as well as STANDARDS 1 and 2 You are answering a USPAP question. As part of the process, you may need to answer several additional questions in order to properly define the problem. - CORRECT ANSWER True An appraiser is working on an appraisal assignment for a mortgage lender client. The client requests two front photos, two rear photos, two street scene photos, and a photo of the property located directly across the street. How would this request BEST be classified? - CORRECT ANSWER As a client condition Two weeks after transmitting an appraisal report on a residential property, an appraiser is contacted by the client asking that the appraiser change the borrower's name on the report. The original borrower was not identified as an intended user in the assignment. Which statement is true regarding this situation? - CORRECT ANSWER The appraiser may change the name and re-transmit the report with a new date of report. You are using the search feature in the eUSPAP, and are searching for the term "intended user." What are you likely to find? - CORRECT ANSWER There are so many results that the search isn't helpful Appraiser A is providing value ranges to potential clients before quoting appraisal fees and agreeing to perform assignments. Is a range of value an appraisal as defined in USPAP? - CORRECT ANSWER Yes, always Is Appraiser J performing as an appraiser when developing these value ranges prior to the agreement to perform an assignment? - CORRECT ANSWER Yes, because they are performing an appraisal Appraiser J does not prepare workfiles for the value ranges provided to the prospective clients. Only after a "full" appraisal is ordered by the client, Appraiser J prepares a workfile. When is Appraiser J required to prepare a workfile for these assignments? - CORRECT ANSWER Before issuing any report or communication of assignment results Is Appraiser J required by USPAP to prepare a workfile in these assignments where the client does not order a full inspection appraisal? - CORRECT ANSWER Yes, a value range is an appraisal, so a workfile must be created and maintained Is Appraiser J permitted under USPAP to receive compensation for an appraisal based on the value of the property (e.g., $100 of an appraisal fee for every $100,000 of property value)? - CORRECT ANSWER No, this is prohibited Which part of USPAP addresses the issue of basing an appraiser's compensation on the appraised value of the property? - CORRECT ANSWER The ETHICS RULE Who are Appraiser J's peers? - CORRECT ANSWER Other appraisers who have expertise in the same or a similar assignment Two appraisers work together on an appraisal assignment. Both appraisers sign the letter of transmittal in the resulting appraisal report. Which statement is TRUE regarding the requirement for a signed certification in this report? - CORRECT ANSWER Both appraisers must sign a certification. Is it permissible under USPAP for an appraisal report to contain two certifications? - CORRECT ANSWER Yes, multiple certifications are permitted in the same report Does USPAP require an appraiser to produce an appraisal report that is free of typographical errors? - CORRECT ANSWER No Under USPAP, credible is an adjective that applies to _________, and misleading is an adjective that applies to _________. - CORRECT ANSWER Appraisal development, appraisal reporting An appraiser's research indicates that the personal property component of a hotel property has a value of approximately $2 million. However, at the behest of the client, the appraiser indicates in the appraisal report that the personal property has no value. Which USPAP term best describes this situation? - CORRECT ANSWER Bias Appraiser A is providing value ranges to potential clients before quoting appraisal fees and agreeing to perform assignments. Is a range of value an appraisal as defined in USPAP? - CORRECT ANSWER If an appraiser delivers an appraisal report after the due date, is that a violation of USPAP? - CORRECT ANSWER No The due date for an assignment is best described as: - CORRECT ANSWER A client condition Is the appraiser correct in disregarding the client's instructions and not making a personal inspection of the subject property? - CORRECT ANSWER No, because the client may have some input into the scope of work, and their instructions to inspect the property are an assignment condition Is an appraiser required to clearly identify the intended use of an appraisal, and if so, why? - CORRECT ANSWER Yes, it is necessary to identify the intended use because the credibility of assignment results is judged in the context of intended use. In completing this assignment, assuming the appraiser had clarified the intended use, what should the appraiser have done with regard to property inspection? - CORRECT ANSWER The appraiser should have made a personal inspection of the property as agreed upon with the client. An appraiser completes an appraisal for an agent of a client and transmits the report. The agent subsequently asks the appraiser to change the name of the client and re-transmit the report, because the agent provided the wrong client name to the appraiser. What should the appraiser do in accordance with USPAP? - CORRECT ANSWER Consider the request as a new assignment An appraiser completes an appraisal on a property for a mortgage lender as the client. The appraiser identifies the buyer of the property as an intended user. Is the appraiser permitted by USPAP to disclose confidential information or assignment results to the buyer? - CORRECT ANSWER No, unless the client provides authorization for the appraiser to do so May the appraiser discuss facts in the appraisal report with a party who is not the appraiser's client or an intended user? - CORRECT ANSWER Yes, as long as they do not disclose confidential information or assignment results There were well-publicized allegations of construction defects involving the subject properties. Are these allegations considered to be facts that could affect the value of these properties? - CORRECT ANSWER Yes, well-publicized allegations of defects are facts that could affect value An appraiser is valuing a property for which the zoning is indeterminate. The appraiser made several attempts to verify the zoning with the municipality but was unsuccessful. An adjacent property is zoned HC-Highway Commercial. The appraiser states in the report that the zoning could not be confirmed and it is believed to be HC, and values the property as such. The report also states that this might have affected the value conclusion. This appraisal involves the use of: - CORRECT ANSWER An extraordinary assumption only In the case study scenario, Appraiser One wrote a letter outlining the alleged deficiencies in the other appraiser's report and setting forth a value opinion. Should Appraiser One have printed this letter on company letterhead? - CORRECT ANSWER No In the case study scenario, Appraiser One wrote a letter to the lender outlining the alleged deficiencies found in the other appraiser's report. Is this an appraisal review assignment? - CORRECT ANSWER No - CORRECT ANSWER - CORRECT ANSWER [Show More]

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