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NATIONAL USPAP EXAM ACTUAL EXAM
2024 | QUESTIONS AND ANSWERS |
(GRADED A+) | VERIFIED ANSWERS |
LATEST VERSION
A real property appraiser has paid a fee to procure an appraisal assignment. According the Management section of the ETHICS RULE, where must the fee be disclosed? a. in the body of the appraisal report b. in the certification and any transmittal letter c. in the engagement letter d. in a separate disclosure to the client -----CORRECT ANSWER----------B) in the certification and any transmittal letter Josh received an appraisal request from a lender-client who told him to immediately call if the value on the property is less than the amount stipulated by the lender, as he doesn't intend to pay for an appraisal that won't benefit his position. Will acceptance of this assignment be in compliance with USPAP? a. yes, it is permissible for a client to call the client with the value prior to adequately supporting the opinion b. yes, this would be a hypothetical condition, which is acceptable c. no, an appraiser may not accept an assignment with unacceptable assignment conditions d. no, it is not permissible unless Josh discloses this fact in the certification per STANDARD 2 -----CORRECT ANSWER----------C) no, an appraiser may not accept an assignment with unacceptable assignment conditions Which of the following would NOT be considered an unacceptable fee arrangement? a. fee based on the appraised value of the subject property b. fee based on the volume of total business from a particular client c. fee contingent on the closing of the subject's loan transaction d. fee contingent on winning a court case where the appraiser provided an appraisal ----
- CORRECT ANSWER----------B) fee based on the volume of total business from a particular client
According to the Management section of the ETHICS RULE, an appraiser affixes bis or her signature in an assignment/or what purpose? a. affirmation of his identity b. authenticate the work of the appraiser c. certify recognition and acceptance of USPAP responsi bi Ii ties d. comply with federal copyright law -----CORRECT ANSWER----------C) certify recognition and acceptance of USPAP responsibilities. A real property appraiser has taken great precaution to safeguard his electronic signature; however, the signature bas been illegally obtained and used without the appraiser's authorization. Has the appraiser violated USPAP? a. yes, an appraiser is always liable regardless of how the signature was obtained b. yes, this is one of many examples of the danger of using electronic signatures c. no, if the appraiser used great care, he is not responsible for unauthorized use d. no, USPAP does not reference the issue -----CORRECT ANSWER----------C) no, if the appraiser used great care, he is not responsible for unauthorized use Confidential information can be disclosed to persons specifically authorized by the client, state appraisal agencies, third parties as authorized by law, or a(n) a. attorney at law. b. duly authorized professional peer review committee. c. party who paid for the appraisal. d. potential client who is using the information to place the appraiser on an "approved" list. -----CORRECT ANSWER----------B) duly authorized professional peer review committee. Anne, a real property appraiser, recently completed an appraisal assignment for a lender-client of a residential property for a refinance transaction. The property owner bas just called Anne to inquire about the appraised value. Which is a true statement? a. Anne must get consent from the lender prior to disclosing the appraised value. b. If the property owner paid for the appraisal, he is an intended user. c. The property owner is entitled to the information.
When an individual is performing valuation services outside of appraisal practice, that individual must be careful to a. charge a fee for his service. b. invoke jurisdictional exception. c. not misrepresent his role. d. refer to the party engaging him as "the client:' -----CORRECT ANSWER----------C) Not misrepresent his role When choosing to provide a valuation service as an appraiser or in some other capacity, great care must be taken to a. charge a fee accordingly. b. keep that capacity confidential. c. maintain public trust. d. not violate the obligations of an Advisory Opinion. -----CORRECT ANSWER----------C) Maintain public trust A real property appraiser teaching appraisal is engaged in a. appraisal consulting services. b. appraisal review. c. appraisal practice with no applicable Standards (1-10). d. valuation service outside of appraisal practice. -----CORRECT ANSWER----------C) Appraisal practice with no applicable Standards (1-10) A lender has telephoned an appraiser to determine the high and low sales prices in the past year that took place in the Green Hills Subdivision. No mention was made of a subject property by the lender. The appraiser has supplied a list of all of the sales within the past year in the subdivision and billed the lender for service. The service being provided by the appraiser is a. appraisal practice with performance and record keeping obligations. b. appraisal practice with no performance standards or record keeping requirements. c. an appraisal that must be developed by 1:he applicable Standard. d. not permitted by USPAP. -----CORRECT ANSWER----------B) Appraisal practice with no performance standards or record keep requirements
In accordance with USPAP, which is NOT tin expectation when acting in the role of an appraiser? a. adhering to the definition of appraiser b. holding a state license or certification c. maintaining public trust d. meeting expectations of clients and other intended users when an appraiser is identified -----CORRECT ANSWER----------B) Holding a state license or certification Compliance with USPAP is required when obligated by a. agreement only. b. law only. c. regulation only. d. agreement, law, or regulation. -----CORRECT ANSWER----------D) Agreement, law, or regulation When an appraiser is providing a service other than an appraisal, appraisal review, or an appraisal consulting service, which would NOT apply? a. DEFINITIONS b. JURISDICTIONAL EXCEPTION RULE c. SCOPE OF WORK RULE d. Statements -----CORRECT ANSWER----------C) SCOPE OF WORK RULE
- Zachary's client instructs htm to report a specific property value as a condition of the assignment. The assignment a. permits the appraiser's independence. b. is allowed as long as the appraiser confirms the value. c. is an acceptable assignment condition. d. is a violation of the ETHICS RULE. -----CORRECT ANSWER----------D) is a violation of the ETHICS RULE
- Which of these activities does the Conduct section of the ETHICS RULE prohibit?
d. no, since an appraisal was recently performed, he may be biased about certain aspects of the home -----CORRECT ANSWER----------A) yes, as long as he discloses the previous service on the property to the client and in the subsequent report certification When an appraiser is offered the opportunity to appraise a property for a new client that was the subject of a prior assignment, and the appraiser is not bound to keep the previous assignment confidential, the appraiser must a. decline the assignment. b. disclose all confidential information. cl obtain a release from the client in the first assignment. d. protect any confidential information from the first assignment and disclose the prior appraisal. -----CORRECT ANSWER----------D) protect any confidential information from the first assignment and disclose the prior appraisal. Which best defines a professional peer review committee? a. Appraisal Standards Board b. committee comprised of other appraisers c. lender organization approving appraisers d. state investigator board -----CORRECT ANSWER----------B) Committee comprised of other appraisers Anthony and Beth acted as co-appraisers on an appraisal assignment and Anthony, Beth's supervisor, bas custody of the workfile. Beth bas received a court order to appear with, a true copy of the appraisal report kept in the workfile in a case involving possible mortgage fraud. Must Anthony provide the copy of the report to Beth so that she may comply with .the court order? a. yes, but he must first obtain a letter of authorization from the client to release the appraisal report b. yes, to be compliant with due process of law, Anthony must provide the appraisal report copy c. no, since Beth does not have custody of the workfile, she is not obligated to provide a copy of the appraisal report d. no, the Gramm-Leach-Bliley Act of 1999 prohibits appraisers from releasing personal information about clients -----CORRECT ANSWER----------B) yes, to be compliant with due process of law, Anthony must provide the appraisal report copy
When an appraiser is providing a value opinion using an effective date in the past (retrospective), when does the appraiser's competency apply? a. at the time of the assignment b. date the report is submitted to the client cl effective date of the report d. when the report is signed by the appraiser -----CORRECT ANSWER----------A) At the time of the assignment Which would NOT be considered a competency factor in a particular assignment? a. analytical method b. appraiser's credentials c. intended use d. laws and regulations -----CORRECT ANSWER----------B) Appraiser's credentials If an appraiser is unable to comply with the COMPETENCY RULE to complete an assignment competently, he is obligated to a. decline or withdraw from the assignment. b. not charge for the assignment. c. notify the licensing authority in his jurisdiction. d. take additional education. -----CORRECT ANSWER----------A) decline or withdraw from the assignment. The Conduct section of the ETHICS RULE requires the appraiser to disclose previous services as an appraiser or in any capacity regarding the subject property/or what period of time prior to accepting an assignment? a. one year b. two years c. three years d. five years -----CORRECT ANSWER----------C) three years Disclosure of fees, commissions, and things of value given in connection with the procurement of an assignment must be disclosed in what part of a report or specific document?
An appraiser's peer is defined as a. another appraiser possessing the same credentials. b. appraisers who work in the same geographic area. c. other appraisers who have expertise and competency in a similar type of assignment. d. a regularly intended user in a similar assignment. -----CORRECT ANSWER----------C) other appraisers who have expertise and competency in a similar type of assignment. When can an extraordinary assumption be used regarding information not available to the appraiser due to assignment conditions? a. it cannot be used b. when the client directs it be used c. when credible assignment results can still be developed d. when there are no other intended users -----CORRECT ANSWER----------C) when credible assignment results can still be developed Which is NOT an option when an appraiser finds circumstances that change the research and analysis that he originally planned at the onset of an assignment? a. disregard the circumstances and proceed as originally planned b. modify the scope of work c. use an extraordinary assumption if credible results could be obtained d. withdraw from the assignment -----CORRECT ANSWER----------A) disregard the circumstances and proceed as originally planned The scope of work disclosed in an appraisal report must include the a. appraiser's final conclusions and value opinion. b. initially planned scope of work at the onset of the assignment. c. intended use in the assignment. d. scope of work that was actually performed. -----CORRECT ANSWER----------D) scope of work that was actually performed.
Which is NOT a force that could cause an appraiser to invoke the JURISDICTIONAL EXCEPTION RULE? a. administrative rules and ordinances b. attorney at law c. constitutional law d. legislative and court-made law -----CORRECT ANSWER----------B) attorney at law When the JURISDICTIONAL EXCEPTION RULE is invoked, who determines if the Rule is appropriate? a. the appraiser b. the client c. the intended users d. state and local authorities -----CORRECT ANSWER----------A) the appraiser Scope of work is the type and extent of research and ____ in an assignment. a. analysis b. diligence c. inspection d. reporting -----CORRECT ANSWER----------A) Analysis Which would NOT be part of the scope of work decision? a. extent of inspection b. extent of property identification c. reporting option and format d. type and extent of data to be researched -----CORRECT ANSWER----------C) reporting option and format The scope of work in each particular assignment must be determined when the assignment involves a. an appraisal, appraisal review, or appraisal consulting. b. any appraisal practice. c. intended users other than the client.
Which is NOT one of the three general obligations of an appraiser under STANDARD 1? a. correctly complete research and analysis necessary to produce credible results b. determine the scope of work necessary c. identify the problem to be solved d. report the opinions and conclusions reached by an appraiser -----CORRECT ANSWER----------D) report the opinions and conclusions reached by an appraiser According to the Comment to Standards rule 1 - 2 of USPAP, an appraiser must dev.-!lop an opinion of reasonable exposure lime whenever he a. considers it meaningful to the client and intended users. b. is developing an opinion of market value. c. is performing the appraisal for a sales transaction. d. notes that the property is currently on the market. -----CORRECT ANSWER----------B) is developing an opinion of market value. Standards Rule 1-3 of USPAP, in part, requires which action in a market value assignment? a. application of the approaches to value b. client consent to proceed with the assignment c. development of an opinion of highest and best use d. disclosure of the scope of work performed -----CORRECT ANSWER----------C) development of an opinion of highest and best use According to Standards Rule 1-4 of USPAP, what quantity of data must be analyzed when a sales comparison approach is necessary for credible assignment results? a. all that can be located within one mile from the subject property b. any sales that occurred within one year of the effective date in the assignment c. no fewer than three comparable sales d. such comparable sales as are available -----CORRECT ANSWER----------D) such comparable sales as are available
When developing an income approach, Standards Rule 1-4 of USPAP, in part, requires an appraiser to base projections of future rent or income potential and expenses on a. actual income and expense data of the property. b. the basis of an extraordinary assumption. c. nationally published income and expense data. d. reasonably clear and appropriate evidence. -----CORRECT ANSWER----------D) reasonably clear and appropriate evidence. Standards Rule 1-2 of USPAP prohibits an appraiser from allowing the or a ___ client's objectives to cause the assignment results to be biased. a. intended use of an assignment b. neighborhood composition c. property's relevant characteristics d. quality and quantity of data analyzed -----CORRECT ANSWER----------A) intended use of an assignment Prospective value opinions occur when the value opinion is expressed a. as a value opinion expressed in relationship to a monetary benchmark. b. as an amount greater than the appraiser's value opinion. c. as of an effective date in the future. d. in an assignment using hypothetical conditions. -----CORRECT ANSWER----------C) as of an effective date in the future. What is an appraiser NOT required to do when the subject property is a fractional interest, physical segment, or a partial holding? a. analyze the market b. determine the scope of work c. reconcile the conclusions d. value the whole property -----CORRECT ANSWER----------D) value the whole property Standards Rule 1-5 states that appraisers must analyze agreements of sale, options, and listings of the subject property current as of the effective date of an appraisal, in a market value assignment, if it is
b. dictate the form, style, or format of an appraisal report. c. dictate the Standards, Rules, and requirements that must be adhered to when completing an appraisal report. d. detail the elements and certifications that must be part of every real property appraisal report. -----CORRECT ANSWER----------B) dictate the form, style, or format of an appraisal report. According to Standards Rules 2-2( a), (b ), and (c)(viii) of USPAP, regarding the information analyzed and methodology used in an assignment, the exclusion of ___ must be explained. a. assignment results that are credible b. determining the scope of work necessary c. significant real property appraisal assistance d. the sales comparison approach, cost approach, or income approach -----CORRECT ANSWER----------D) the sales comparison approach, cost approach, or income approach
- The contents of a workfile in support of a Restricted Use Appraisal Report must include sufficient information for an appraiser to produce a a. Letter of Opinion. b. Restricted Use Appraisal Report. c. Self-Contained Appraisal Report. d. Summary Appraisal Report. -----CORRECT ANSWER----------D) Summary Appraisal Report. Which report option permitted by USPAP "describes" information that is significant to the solution of the appraisal problem? a. Narrative Appraisal Report b. Restricted Use Appraisal Report c. Self-Contained Appraisal Report d. Summary Appraisal Report -----CORRECT ANSWER----------C) Self-Contained Appraisal Report The level of information necessary in a report and the reporting option chosen by an appraiser depends on the in an ___ assignment.
a. client's instructions b. fee being charged c. intended use and intended users d. scope of work determined -----CORRECT ANSWER----------C) intended use and intended users An oral real property appraisal report, to the extent both possible and appropriate, must address the substantive matters of a a. Restricted Use Appraisal Report. b. Self-Contained Appraisal Report. c. Summary Appraisal Report. d. Transcript of testimony. -----CORRECT ANSWER----------C) Summary Appraisal Report. In developing an appraisal review, Sarah identified the work under review and the characteristics of that work, which tire relevant to the intended use and purpose of the appraisal review. What information should Sarah NOT include when developing her appraisal review? a. any ownership interest in the property b. credentials of the appraiser in the work under review c. date of work under review and effective date of opinions d. physical, legal, and economic characteristics of the property -----CORRECT ANSWER----------B) credentials of the appraiser in the work under review Jennifer is reviewing the analyses, opinions, and conclusions of an appraisal report. During this process, Jennifer disagrees with some of the analyses. What must she do? a. decide whether the issues discovered are wcrthy of reporting b. describe the faults of the appraiser who produced the work under review c. develop reasons for any disagreement d. obtain client approval to report the disagreements -----CORRECT ANSWER---------- C) develop reasons for any disagreement
Which Standard in USPAP expresses that the certification in compliance with this Standard is not intended to disturb an elected or appointed assessor's work plans or oaths in office? a. STANDARD 4 b. STANDARD 6 c. STANDARD 7 d. STANDARD 9 -----CORRECT ANSWER----------B) STANDARD 6 Standards Rule 4-2 of USPAP obligates an appraiser performing a real property appraisal consulting assignment to ensure that any opinion of value being used as a component of the analysis was developed in compliance with a. STANDARD 1. b. STANDARD 2. c. STANDARD 3. d. STANDARD 4. -----CORRECT ANSWER----------A) STANDARD 1. According to Standards Rule 5-2 of USPAP, if the consulting appraiser developed the value opinion used in the real property appraisal consulting assignment, the information must be reported within the consulting report in compliance with a. the SCOPE OF WORK RULE. b. STANDARD 1. c. STANDARD 4. d. Standards Rule 2-2(a), (b), or (c)(ii-x). -----CORRECT ANSWER----------D) Standards Rule 2-2(a), (b), or (c)(ii-x). In an appraisal for ad valorem taxation purposes, when only one property is the subject of the appraisal assignment, which development Standard would apply? a. STANDARD 1 b. STANDARD 2 c. STANDARD 4 d. STANDARD 6 -----CORRECT ANSWER----------A) STANDARD 1
What service is an appraiser providing when the purpose of the assignment is to report an opinion or recommendation where at least one opinion of value was a component of his analysis? a. appraisal b. appraisal consulting c. appraisal review d. other type of valuation service -----CORRECT ANSWER----------B) appraisal consulting In an assignment/or which the appraiser was hired by an appraisal management company {AMC), the appraiser may consider the lender the client as long as the AMC is a. an authorized representative of the lender. b. an intended user in the report. c. not the party paying the appraiser. d. party to a contractual agreement with the appraiser. -----CORRECT ANSWER---------- A) an authorized representative of the lender. Intended users in a specific assignment must be identified a. by name or type. b. during the research and analysis process. c. in the report certification. d. without communication with the client. -----CORRECT ANSWER----------A) by name or type Within USPAP, the appraiser's ___ are {is) always specific to the intended use. a. fee for the assignment b. impartiality c. level of independence d. opinions and conclusions -----CORRECT ANSWER----------D) opinions and conclusions The intended use and the intended user of the appraiser's opinions and conclusions are identified ___ the assignment.
