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Terms in this set (215)
The use of the JURISDICTIONAL EXCEPTION RULE in an assignment is a matter of choice by an appraiser.
Uniform Standards of Professional Appraisal Practice
is the generally-regonized ethical and performance standards for the appraisal profession
1. The Preamble 2. Definitions 3. Rules 4. Standards - Standard Rules
Which foundation board is responsible for USPAP?
Appraisal Standards Boards (ASB)
The Appraisal Foundation has the authority to enforce the requirements of USPAP.
Which entity appoints members of the AQB and ASB?
Board of Trustees (BOT)
Qualification criteria for appraiser certification and recertification are disseminated to state appraisal boards by the:
Appraiser Qualifications Board (AQB)
Which entity is responsible for establishing education and experience requirements for licensing and certification of appraisers?
Appraiser Qualifications Board (AQB)
Advisory Opinions are best described as
not part of USPAP, but included as reference material
USPAP is written, amended, and interpreted by the:
Appraisal Standards Board (ASB)
Which entity maintains the official National Registry of state-certified and licensed appraisers?
Appraisal Subcommittee (ASC)
USPAP is enforced by:
State appraiser licensing/certification agencies
Who is responsible for issuing credentials to individual appraisers?
State appraisal regulatory agencies
Which is NOT a responsibility of the Appraisal Subcommittee (ASC)?
Writing, interpreting, and amending USPAP
Why are USPAP Advisory Opinions issued?
To offer advice
Which part of USPAP establishes the requirements for workfile content for an appraisal or appraisal review assignment?
RECORD KEEPING RULE
Which of these is considered an integral part of USPAP and has the same weight as the components they address?
In USPAP, the appraisal process is divided into two distinct types of activity: _________ and __________.
Which step in the appraisal process involves communication of the appraiser's opinions and conclusions?
The first step in the appraisal process is:
Identify the problem
What is the stated purpose of USPAP?
Promote and maintain a high level of public trust in appraisal practice
The PREAMBLE states that USPAP intended to benefit:
Appraisers and users of appraisal services
To which property types does USPAP apply?
Both tangible and intangible property
When obligated by law or regulation, an appraiser _______ comply with USPAP.
a service pertaining to an aspect of property value, regardless of the type of service and whether it is performed by appraisers or by others.
valuation services performed by an individual acting as an appraiser including, but not limited to appraisal or appraisal review.
An appraiser has the professional responsibility to identify the capacity in which he or she is performing.
The requirement for USPAP compliance in an appraisal assignment could be the result of:
Agreement with the client
Law or regulation
Voluntary choice by the appraiser
A valuation service that is premised upon advocacy:
It cannot be performed by an individual acting as an appraiser
When performing valuation services outside of appraisal practice, an individual must be careful not to __________ the client and other intended users about his or her role.
USPAP states that in a situation when an individual is not required by law, regulation, or agreement to comply with USPAP:
The individual should still comply when he or she is acting as an appraiser
Should an appraiser revise a value opinion from $520,000 to $525,000 as requested by a mortgage client, since the requested change is less than 1%?
An appraiser is permitted to be biased when performing an appraisal, as long as the bias is properly disclosed.
A preference or inclination that precludes an appraiser's impartiality, independence, or objectivity is:
A client wants to know the current value, as though repaired, of a property that has been damaged due to flooding from a severe storm. What type of assignment condition should the appraiser use?
A client has repaired a property that was damaged due to flooding. Several neighboring properties that were similarly flooded and later repaired soon developed mold problems. The client's property shows no evidence of mold as of the effective date. What type of assignment condition should the appraiser use if the client wants a current value opinion of the property?
If an appraiser assumes a condition to be true that does not exist for the purposes of analysis, this is an example of:
A hypothetical condition
If an appraiser assumes a condition to be true, and evidence supports that belief, although that fact is not certain, this is an example of:
An extraordinary assumption
"The monetary relationship between properties and those who buy, sell or use those properties" is the definition of:
An appraiser receives a copy of a signed sales agreement for an office building, which specifies the agreed-upon amount of $950,000. What does this figure represent?
By using a published cost manual, an appraiser determines that the construction cost of a 2,500 square foot dwelling is $400,000. This figure represents the dwelling's:
According to USPAP, the party or parties who engage an appraiser in a specific assignment defines the:
It is permissible for an appraiser to be engaged in an assignment by an agent, who is acting on behalf of the client.
An appraiser performs an appraisal assignment and develops an opinion of value. This value opinion is
an assignment result
I perform assignments from an Appraisal Management Company (AMC) that has informed me that they are an authorized agent for the lenders they represent. As the AMC is not my client, they have requested that I only identify the lender they are representing as the client. USPAP says the appraiser's client is the party who engages the appraiser. Is it ethical for me to omit the AMC's name as the client on my reports?
Who is responsible for making the identification of the intended use in an assignment?
An intended user is:
A party who is identified by the appraiser based on communication with the client at the time of the assignment
A client requests "a number" over the phone in advance of the written appraisal report. How should an appraiser handle this type of request?
additional report - oral
A client contacts a broker to lease her office property. The broker also provides appraisal services, but the client was not aware of that when she contracted with the broker. Is this assignment a valuation service or is it appraisal practice?
Appraisal practice includes only:
Valuation services provided by an individual acting as an appraiser
A real estate broker completes a Comparative Market Analysis (CMA) on a property that she wants to list for sale. What would this be considered?
A valuation service
Which is the broader category of services?
A workfile must be maintained for:
Appraisal and appraisal review assignments only
In USPAP, each Standard is composed of:
"The type and extent of research and analyses in an appraisal or appraisal review assignment" is the definition of ___________.
Scope of work
Bias is permitted in an appraisal as long as the bias is clearly disclosed in the report.
The ethical obligations of USPAP apply to:
In appraisal practice, advocating the cause or interest of any party or issue is:
I know appraisers who consistently conclude that the market value of any property they appraise is equal to the contract sales price. In doing so, they facilitate sales and financing of purchases, which is apparently what keeps their clients happy. Is this a violation of USPAP?
Contract price is not the market value
If I have appraised a property multiple times within the previous three years, do I have to disclose the number of appraisal services? (e.g., "I have appraised the subject property three times during the three years immediately preceding the agreement to perform this assignment.")
I occasionally receive requests to appraise a property that I have appraised in the past. Since the ETHICS RULE requires me to disclose any assignments I performed within the three years immediately preceding the agreement to perform the assignment, isn't such a disclosure a violation of an appraiser's responsibility under the Confidentiality section of the ETHICS RULE?
An appraiser is disclosing to a client the fact that she had previously appraised the subject property within the prior three years. When making this disclosure, the appraiser must be careful to:
Not disclose confidential information from the previous assignment
An appraiser must disclose any service he or she provided regarding the subject property for a period of _________ prior to agreeing to perform the assignment.
Is it ethical to reduce the fee for appraisals in cases when the loan did not close? Would the result be different if the client agreed to pay extra for other assignments?
A potential client has asked me to complete a form indicating what my appraisal fee would be for different assignments. The form asks me to indicate my appraisal fees according to appraised value by listing the fee for assignments with appraised values between $100,000 and $299,000, $300,000 and $499,000, and so on. Is it a violation of USPAP to quote fees in this manner?
An appraiser has been asked to complete an appraisal assignment. The fee is to be paid only if the loan closes. According to USPAP, may the appraiser accept the assignment under these conditions?
No, the fee arrangement is an unethical contingency arrangement and violates the ETHICS RULE.
In a real property appraisal assignment prepared for a mortgage lender, an appraiser is permitted by USPAP to base his compensation for an appraisal assignment on:
Whether or not the report is transmitted to the client by the due date
I am aware that the ASB changed the definition of assignment results to specify that physical characteristics are not assignment results. Does this mean that physical characteristics are not confidential?
I read an appraisal report that included the paragraph below regarding the subject property's improvements. The paragraph appears to include both a description of the physical characteristics, as well as the appraiser's opinions (i.e., assignment results). I would like clarification on which items are physical characteristics and which are assignment results.
The Confidentiality section of the ETHICS RULE prohibits an appraiser from disclosing confidential information or _________ to unauthorized parties.
In most cases, an appraiser may share __________ from an appraisal assignment with other appraisers without obtaining the client's consent.
An appraiser concludes that a subject property has functional inadequacies. This conclusion is:
An assignment result and must be treated as confidential
I am an appraiser in a large firm and assist several of the senior appraisers in appraisal research, analysis, and report preparation. In a recent USPAP class, the instructor said that associates must have either copies of their workfiles, or an agreement with their employer regarding access to the workfiles, for appraisals on which they provided significant assistance. Does that agreement have to be in writing?
How must recognition of my significant appraisal assistance be included when there is no written report, but significant assistance was provided and documentation of my work is in the workfile?
I was recently told that USPAP allows appraisers to wait and create a workfile after the report has been delivered to the client for an appraisal or appraisal review. Is this true?
The RECORD KEEPING RULE states, in part: The workfile must include...true copies of all written reports... Does a true copy have to include a signature on the certification?
Is an appraiser permitted by USPAP to create a workfile after transmitting the report to the client?
An appraiser prepared an appraisal report in April 2019. He testified in court regarding the value of the property in January 2020. The decision was rendered in February 2020 and was appealed in April 2020. The appellate court heard the case in January 2021 and remanded the case for reconsideration by the lower court. Final disposition of the case occurred in September 2021. At a minimum, how long must the appraiser retain his workfile?
An appraiser completes an appraisal and transmits the report to the client. The report copy retained in the appraiser's workfile does not have a signature affixed to it. Is this permissible under USPAP?
No, a true copy must include a signature
I just completed my first assignment for a new client, and the client is very angry and is refusing to pay me. The client is a lender and the subject property is a mid-size office property that I am well qualified to appraise. However, the client says that I did not use the correct definition of market value (the one required by FIRREA) and that I did not follow other requirements for appraisals used by federally regulated financial institutions.
Client is correct
Which statement best describes the word "competency" as it relates to appraisal practice?
It is fundamental to the definition of "appraiser."
An appraiser is asked to perform an assignment involving a property type with which he has had no previous experience or knowledge. The appraiser notifies the client of his inexperience and lack of knowledge and the means for overcoming both issues. The report does not, however, disclose any of this information, as the client specifically asked the appraiser to keep the information confidential. Has the appraiser complied with USPAP?
I am a residential appraiser performing work for several Appraisal Management Companies. Often, I am asked to perform an appraisal assignment outside the geographic areas I am most familiar with. The assignments come with a requirement that a completed report be submitted within 48 hours or less. This time frame does not permit me to adequately research the subject property market. Is it permissible for me to agree to perform an assignment under these conditions?
In order to perform an assignment for which an appraiser initially lacks the knowledge and experience to complete competently, the appraiser must:
Disclose to the client, prior to agreeing to perform the assignment, the lack of knowledge or experience
Which of these is NOT one of the steps required by USPAP when an appraiser wishes to perform an assignment for which he or she initially lacks the knowledge and experience?
Use a hypothetical condition to complete the assignment as though the appraiser already had the knowledge and experience
The requirement to create and maintain a workfile for an appraisal or appraisal review assignment applies to:
All appraisers, regardless of credential level
Three appraisers work together on an appraisal assignment. What would NOT be an appropriate workfile arrangement under USPAP?
The workfile is posted on the Internet, so that anyone who wants to see it will be able to access it.
The credibility of assignment results is measured in the context of:
In order to determine the appropriate scope of work, the appraiser must ________ the problem to be solved.
Appraisers have broad _________ and significant _________ in determining the appropriate scope of work in an assignment.
Examples of assignment conditions include:
Laws and regulationsExtraordinary assumptions/ assumptionsHypothetical conditionsjurisdictional assumptions
Identification of the intended use of an appraiser's opinions and conclusions is:
Necessary for determining the appropriate scope of work
Intended use is:
Identified by the appraiser on the basis of communication with the client
The responsibility for determining an appropriate scope of work rests with the:
In an appraisal or appraisal review assignment, the scope of work is an ___________ process.
An appraiser's report must contain ____________ to allow intended users to understand the scope of work performed.
An appraiser must not allow client objectives to cause the assignment results to be _________.
The SCOPE OF WORK RULE provides appraisers with significant flexibility. Along with that flexibility comes:
If a client's objectives result in an appraiser developing biased assignment results:
The appraiser is solely responsible
A real property appraiser is engaged to appraise a 12-unit apartment building to provide a market value opinion. The appraiser initially decided that the scope of work should include the inspection of two of each of the three unit types (studio, one- and two-bedroom). In the course of conducting the inspection, the property manager had a key for only one of the two-bedroom units; thus, the appraiser was unable to inspect one of the two-bedroom units as planned. Does this affect the scope of work?
Yes if they have sufficient information
A real property appraiser agreed to perform an assignment to appraise a three-unit residential property. The intended use of the appraisal was for mortgage financing. The client requested that the appraiser not verify the legal status (e.g., compliance with zoning, building codes, use permits) of the three units with municipal officials. What should the appraiser do?
Withdraw from assignment
A real property appraiser was engaged to appraise a one-unit residence. Based on the appraiser's identification of the appraisal problem, the appropriate scope of work was determined to include development of the sales comparison and cost approaches. However, at the time of inspection, the appraiser discovered that the property was not a one-unit, but instead a three-unit property. What should the appraiser do?
New scope of work - a new appraisal problem
An appraiser has been engaged to perform an "exterior only" inspection for the appraisal of a one-unit house for a potential home equity loan. Another appraiser has been asked to appraise a one-unit home in the same development for an FHA loan. Since the subject properties are similar, would the assignments require the same scope of work?
An appraiser has agreed to complete an assignment in the next two days. While conducting research, the appraiser discovers that the primary data source for the assignment, a regional computer database, is offline and will not be available for three days. What is the appropriate course of action?
Modify the time frame
An appraiser is engaged to appraise a single-unit dwelling. Upon inspection of the property, the appraiser realizes it is a three-unit dwelling. The appraiser's best course of action is:
Reconsider the scope of work before proceeding
An appraiser's peers are defined as other appraisers who:
Have expertise and competency in a similar type of assignment
In reporting the scope of work in an appraisal or appraisal review report:
The report must contain sufficient information so that intended users understand the scope of work
If USPAP compliance is mandated by federal law, no state or local law can create a jurisdictional exception.
If an assignment involves a jurisdictional exception, what must an appraiser do?
Identify the law, comply with the law, disclose in the report the part of USPAP that is voided, and cite in the report the law that caused the jurisdictional exception
What is the purpose of the JURISDICTIONAL EXCEPTION RULE?
To provide a saving or severability clause to preserve the balance of USPAP
When a law or regulation precludes compliance with any part of USPAP, appraisers must:
As used in the JURISDICTIONAL EXCEPTION RULE, the term "law" includes ____________.
Administrative rules and ordinances
Is it permissible to use instructions from an attorney as a basis for a jurisdictional exception?
An appraiser was recently hired to perform an appraisal assignment for a government agency. The agency has a regulation that requires the appraiser to provide the appraisal report to other government agencies if requested. Does this regulation create a jurisdictional exception to the Confidentiality section of the ETHICS RULE?
A property owner's attorney in a condemnation case has asked a real property appraiser to use the JURISDICTIONAL EXCEPTION RULE of USPAP in a particular assignment. The subject property sold within one year of the appraisal for what everyone admits was a very low price, although all parties claim the sale was not made under duress. The attorney does not want the prior sale mentioned in the appraisal report.The appraiser reviews USPAP with the attorney, showing him Standards Rule 1-5 which requires appraisers to analyze any prior sales of the property being appraised that occurred within three years. The attorney is aware that the JURISDICTIONAL EXCEPTION RULE exists and tells the appraiser to apply it in this situation. How should the appraiser respond?
Instructions from a client do not establish a jurisdictional exception. A jurisdictional exception is not created unless compliance with one or more of the requirements of USPAP is precluded by law or regulation of a jurisdiction.
Which of these would be considered an example of a jurisdictional exception in an appraisal assignment?
A probate court paying appraisers based on the value of the subject property
A state passes a law requiring appraisers to keep their workfiles for 10 years after preparation. Is this a jurisdictional exception under USPAP?
When does a jurisdictional exception occur in an assignment?
It is automatic when a law precludes compliance with a part of USPAP
Which statement is FALSE regarding STANDARD 1?
It covers real and personal property appraisal development.
True: It mirrors the appraisal process.
It contains six Standards Rules.
It can be used as a checklist for proper development.
The requirements of STANDARD 1 can be used as a checklist by an appraiser who is developing a real property appraisal.
An appraiser's client wishes to remain anonymous, and asks the appraiser not to include client's identity in an appraisal report. What should the appraiser do?
Omit client from project but show in workfile
When does a series of minor errors potentially result in a USPAP violation?
When the series of errors affects the credibility of the results
If a mortgage borrower receives a copy of an appraisal report from a mortgage lender as a result of disclosure requirements:
This does not make the borrower an intended user
Which statement is TRUE regarding exposure time?
It is always assumed to precede the effective date of the appraisal.
Exposure time is:
An opinion developed by an appraiser
What is the primary purpose of an appraiser making an inspection of the subject property?
To collect information about characteristics that are relevant to value
When appraising a property with proposed improvements, what type of value opinion is permitted by USPAP?
Both current and prospective values
An example of a relevant property characteristic that could affect a real property appraisal assignment would be:
The fact that the subject property is affected by an easement
An extraordinary assumption may be used in an assignment only if:
Required to develop credible results
When an appraiser provides a current value opinion on a proposed new building, he or she is utilizing a(an) _____________ that the proposed improvements are completed as of the effective date of the appraisal.
An unacceptable assignment condition would be a condition that:
All of the answers listed
Limits the scope of work to the extent that the value opinion is not credible
Precludes an appraiser's impartiality
Limits report content, resulting in a misleading report
A local lender has asked me to appraise a 5-acre portion of a 62-acre parcel. Am I permitted to comply with this request?
No Fannie Mae and Freddie Mac do not permit an appraiser to value only a physical segment of a property.
I was recently asked to perform a real estate appraisal assignment, but the individual who contacted my firm was not the client and indicated that the client could not be identified. Can I agree to perform this assignment and comply with USPAP?
Which statement is TRUE regarding USPAP and the three approaches to value?
An assignment condition may require an appraiser to develop an approach that he or she would otherwise consider unnecessary.
When developing a sales comparison approach under USPAP:
The appraiser must analyze such data as are available to indicate a value conclusion
When analyzing listings of the subject property in a real property appraisal assignment, USPAP requires an appraiser to analyze, at a minimum, ____________.
When analyzing the subject property's sales history in a real property appraisal assignment, an appraiser is required by USPAP to analyze ______________.
All sales of the subject property that occurred within three years prior to the effective date of the appraisal
I am currently appraising an office building that was transferred 18 months ago by a deed in lieu of foreclosure. Am I required to analyze this transaction?
Yes. All sales of the appraised property within the three-year time period must be analyzed
Does USPAP require the appraiser to reconcile the data used in each approach to value?
In the development of an appraisal, the appraiser is required to:
Not commit a substantial error that significantly affects the appraisal
When is it necessary to analyze prior listings of the subject property in a real property appraisal assignment?
When such analysis is relevant to the current assignment
The process of reconciliation entails ___________.
Careful consideration of the quality and quantity of data
The use of standard appraisal reporting forms
Is not required by STANDARD 2
STANDARD 2 sets forth requirements for
Appraisal report content
What is the essential difference between the two reporting options?
The content and level of information
The two written report options stated in Standards Rule 2-2 are
Appraisal Report and Restricted Appraisal Report
When reporting the results of an appraisal, dates that must be included are
Effective date and report date
Which of the following is NOT required by USPAP to be in an Appraisal Report?
Client's specific name
An appraiser's client requests anonymity and asks that their identity not appear in the Appraisal Report that is prepared for the assignment. What must the appraiser do?
All of these actions must be taken
-Document the identity of the client in the workfile
-Use care not to violate the Confidentiality section of the ETHICS RULE
-State in the report that the client's identity has been withheld at the client's request
In an Appraisal Report, the scope of work used to develop the appraisal must be
An appraiser determines that the cost approach is not necessary in an appraisal assignment, and therefore does not develop the approach. In the Restricted Appraisal Report for the assignment, what must the appraiser do?
State the reason for the exclusion of the approach
All written appraisal reports must contain
a signed certification
When an extraordinary assumption is used in an appraisal, the report must state the extraordinary assumption and
state that its use may have affected the assignment results
An appraiser is preparing a Restricted Appraisal Report in a situation where there are intended users in addition to the client. Which statement is true regarding this situation?
These additional intended users must be identified in the report by name.
According to USPAP, any appraiser who signs any part of an appraisal report is required to
sign a certification
What is the purpose of including a signed certification in an appraisal report?
For the appraiser to acknowledge his or her ethical obligations
Which of the following best describes bias in appraisal practice?
It is not permitted
An appraiser provides an oral report of a real property appraisal. Which statement is CORRECT?
The appraiser must add a signed and dated certification to her appraisal workfile.
To the extent possible and appropriate, oral appraisal reports for real property must address the substantive matters that apply to a(n)
USPAP requires an appraiser to obtain a release from a previous client before appraising the same property for a new client.
An appraiser completes an appraisal for Bank A. Two months later, he is contacted by Bank B, who asks him to "readdress" his prior report to them. Which statement is TRUE about the appraiser's USPAP obligations?
He is not permitted to "readdress" the report to Bank B.
If a client requests a more current valuation on a property that was the subject of a prior assignment, this is a(n) ____________.
What are the appraiser's obligations under USPAP when a supervisory appraiser makes changes that the appraiser does not agree with?
Do not sign the repot
A trainee assisted a senior appraiser in an appraisal assignment, but the trainee appraiser does not sign a certification. The trainee's name is stated in the certification as having provided significant appraisal assistance. Is a description of the trainee's assistance also required to be in the certification?
If a supervising appraiser makes changes to a trainee's appraisal report which the trainee does not agree with, the trainee should
not sign the certification
In STANDARD 3, the word "reviewer" means:
an appraiser who is performing an appraisal review
The subject of an appraisal review assignment may be
another appraiser's work that is completed as part of an appraisal or appraisal review assignment
A reviewer is performing an appraisal review on an appraisal report prepared on a residential property. The reviewer is required by USPAP to:
Identify whether it is necessary to develop his or her own value opinion as part of the appraisal review assignment
When developing an appraisal review, USPAP requires a reviewer to identify the appraiser who completed the work under review:
unless the identity has been withheld by the client
In performing an appraisal review, a reviewer may use information that was not available to the original appraiser in the normal course of business, as long as the information:
is not used in the development of the reviewer's opinion of the quality of the work under review
When performing an appraisal review, a reviewer finds information that was available to the original appraiser, but the original appraiser did not consider it when developing the appraisal under review. Does USPAP permit the reviewer to use this information in developing an opinion of the quality of the work under review?
Does concurring with a value opinion developed by another appraiser constitute an appraisal opinion?
Yes. If you concur with the value in the report, it does constitute an appraisal by the reviewer.
Is a reviewer permitted to file a complaint with a state's appraisal regulatory agency without the client's consent?
It is the opinion of the ASB that reviewers may, absent any higher precedent law or regulation, file a complaint with a state regulatory agency without the consent of their client.
Is a reviewer permitted to file a complaint with a state appraisal regulatory agency without the client's consent?
Which statement is TRUE regarding USPAP and the appraisal review process for real property?
If the reviewer develops his or her own opinion of value, it must be developed under the requirements of STANDARD 1.
An appraisal review can be a two-stage assignment, which includes both an appraisal review and a value opinion by the reviewer.
A reviewer is preparing an appraisal review report. The identity of the appraiser who completed the work under review was not provided by the reviewer's client. What should the reviewer do?
State, in the appraisal review report, that the appraiser's identity was withheld by the client
A reviewer is reviewing a real property appraisal and has developed her own value opinion that differs from the value opinion in the work under review. When reporting her value opinion in the appraisal review report, what must the reviewer do?
Provide data and analysis that matches the reporting requirements for an Appraisal Report
Can a reviewer use information that was not available to the original appraiser to discredit the appraiser's value opinion?
As part of an appraisal review assignment, a reviewer develops his own opinion of value that differs from the original appraiser's value opinion. How many certifications does USPAP require in the appraisal review report for this assignment?
Is a reviewer permitted by USPAP to use information that was not available to the original appraiser to discredit the work under review?
A reviewer performing an appraisal review must not sign the work under review unless he or she intends to accept the responsibility as a co-signer of the work.
If a reviewer provides an oral report of an appraisal review
a signed certification must be inserted into the workfile
If an appraiser is asked to develop an opinion of the quality of another appraiser's work and to agree or disagree with the value conclusion
this is a two-stage assignment
Which of these examples indicates that a reviewer DID NOT develop his own opinion of value in an appraisal review assignment?
I reject the value conclusion as lacking credibility due to the errors and inconsistencies found.
An appraisal review report
must be separate from the work under review
A reviewer is responsible for ensuring that there is __________ in a review report so that it can be properly understood by __________.
Sufficient information; intended users
A reviewer is preparing an appraisal review report using a pre-printed form that was created by the client. The form does not have space for all of the minimum report content requirements of USPAP. What should the reviewer do?
Supplement the form with the required content items
STANDARD 5 is most similar in structure to:
STANDARD 5, Mass Appraisal, Development, applies to:
Both real and personal property
Notifications sent to property owners of the results of a mass appraisal, which may be required by public policy, are considered:
Notifications, and not reports
In a written mass appraisal report prepared under STANDARD 6, what is the purpose of a signed certification?
It serves as an appraiser's acknowledgement of his or her ethical obligations
An appraiser is engaged by her local county assessment board to complete an appraisal on an apartment building for ad valorem taxation purposes. Which USPAP STANDARD(S) apply to this assignment?
STANDARDS 1 and 2
In a personal property appraisal assignment that includes multiple objects as part of the same assignment:
The objects that are more significant to the assignment results should be the focus of the analysis
An appraiser must recognize that there are distinct levels of trade in personal property, and each may have different comparable data.
When appraising personal property, the appraiser must analyze prior sales of the subject over what time period?
A reasonable and applicable time
Under STANDARD 8, a personal property appraiser has ____ written report options.
Which of the following reports require a signed certification?
All oral and written reports covered in USPAP
An appraiser is developing an appraisal and will be reporting it in a Restricted Appraisal Report. Because this less detailed reporting option is being used, is the appraiser permitted to use an abbreviated appraisal development process?
A client has asked an appraiser to provide a value based on "rules of thumb". What should the appraiser do?
Not do it
A written business appraisal report must be prepared in accordance with which of the following options?
Appraisal Report or Restricted Appraisal Report
An appraiser's certification in a business or intangible asset appraisal report does not:
Contain a reference to the inspection of the subject property*
An appraisal that takes into consideration the full effect of known environmental contamination would be considered:
Which of the following statements BEST describes Advisory Opinions?
They are not part of USPAP but illustrate applicability and provide guidance.
The competency required to appraise subsidized housing extends beyond typical residential appraisal competency.
In an appraisal report, the use of terms that reflect a scale such as "good" or "average":
Should include explanation that provides context
An appraiser agrees to provide a market value appraisal for a client. Which statement is true about this situation?
It is essential that the appraiser identify the source of the definition of value to be used.
An appraiser provides raw AVM output to a client. This is:
Not an appraisal, and no workfile is required
If a borrower attempts to engage an appraiser to complete an appraisal for a federally-regulated lending transaction, the appraiser should disclose:
That the lender must engage the appraiser, and that the appraiser cannot later "readdress" the report
Regulations and guidelines that apply to an appraisal for a federally-regulated lending transaction are:
What type of appraisal would be indicated by the phrase, "On September 10, 2012, the market value of the subject property was $200,000"?
What does the effective date of an appraisal establish?
The context of the value opinion
Developing an opinion of value of a property as of a specified future date is:
A prospective appraisal
According to AO-33, the results of discounted cash flow (DCF) analysis should:
Be tested and checked for errors and reasonableness
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