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USPAP FINAL EXAM 2025 LATEST QUESTIONS AND CORRECT
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The Appraisal Foundation has the authority to enforce the requirements of USPAP. - CORRECT ANSWER False; The Appraisal Foundation is a private entity. The Foundation and its boards have no enforcement authority in any jurisdiction. Which Foundation board is responsible for USPAP?
- CORRECT ANSWER Appraisal Standards Board (ASB) Currently, the boards within The Appraisal Foundation include: - CORRECT ANSWER Appraisal Standards Board, Appraiser Qualifications Board, Board of Trustees Which entity is responsible for establishing education and experience requirements for licensing and certification of appraisers? - CORRECT ANSWER Appraiser Qualifications Board (AQB) Which entity appoints members of the AQB and ASB? - CORRECT ANSWER Board of Trustees (BOT)
Qualification criteria for appraiser certification and recertification are disseminated to state appraisal boards by the: - CORRECT ANSWER Appraiser Qualifications Board (AQB) Advisory Opinions are best described as - CORRECT ANSWER not part of USPAP, but included as reference material USPAP is written, amended, and interpreted by the:
- CORRECT ANSWER Appraisal Standards Board (ASB) USPAP is enforced by: - CORRECT ANSWER State appraiser licensing/certification agencies Which is NOT a responsibility of the Appraisal Subcommittee (ASC)? - CORRECT ANSWER Writing, interpreting, and amending USPAP WRONG Answers: Monitoring the practices, procedures, and activities of The Appraisal Foundation, Maintaining a National Registry of licensed and certified appraisers, Overseeing each state's appraiser licensing and certification program are handled by the ASC Which entity maintains the official National Registry of state-certified and licensed appraisers? -
conclusions? - CORRECT ANSWER Reporting To which property types does USPAP apply? - CORRECT ANSWER Both tangible and intangible property What is the stated purpose of USPAP? - CORRECT ANSWER Promote and maintain a high level of public trust in appraisal practice The PREAMBLE states that USPAP intended to benefit: - CORRECT ANSWER Appraisers and users of appraisal services When obligated by law or regulation, an appraiser _______ comply with USPAP. - CORRECT ANSWER Must The requirement for USPAP compliance in an appraisal assignment could be the result of: - CORRECT ANSWER Any of these answers An appraiser has the professional responsibility to identify the capacity in which he or she is performing. - CORRECT ANSWER True 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. - CORRECT ANSWER
Mislead A valuation service that is premised upon advocacy: - CORRECT ANSWER It cannot be performed by an individual acting as an appraiser USPAP states that in a situation when an individual is not required by law, regulation, or agreement to comply with USPAP: - CORRECT ANSWER The individual should still comply when he or she is acting as an appraiser A preference or inclination that precludes an appraiser's impartiality, independence, or objectivity is: - CORRECT ANSWER Bias An appraiser is permitted to be biased when performing an appraisal, as long as the bias is properly disclosed. - CORRECT ANSWER False 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: - CORRECT ANSWER An extraordinary assumption
An intended user is: - CORRECT ANSWER A party who is identified by the appraiser based on communication with the client at the time of the assignment Who is responsible for making the identification of the intended use in an assignment? - CORRECT ANSWER The appraiser Which is the broader category of services? - CORRECT ANSWER Valuation Services 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? - CORRECT ANSWER A valuation service A workfile must be maintained for: - CORRECT ANSWER Appraisal and appraisal review assignments only Appraisal practice includes only: - CORRECT ANSWER Valuation services provided by an individual acting as an appraiser In USPAP, each Standard is composed of: -
CORRECT ANSWER Standards Rules "The type and extent of research and analyses in an appraisal or appraisal review assignment" is the definition of ___________. - CORRECT ANSWER Scope of Work In appraisal practice, advocating the cause or interest of any party or issue is: - CORRECT ANSWER Not permitted The ethical obligations of USPAP apply to: - CORRECT ANSWER Individual appraisers Bias is permitted in an appraisal as long as the bias is clearly disclosed in the report. - CORRECT ANSWER False 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: - CORRECT ANSWER 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
information or _________ to unauthorized parties. - CORRECT ANSWER Assignment results 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? - CORRECT ANSWER No, a true copy must include a signature Is an appraiser permitted by USPAP to create a workfile after transmitting the report to the client? - CORRECT ANSWER No 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? - CORRECT ANSWER April 2024; An appraiser must retain the workfile for five years after preparation or two years after final disposition of any judicial proceeding in which the appraiser provided testimony related to the assignment, whichever period is later. April 2024 (five years after preparation) is longer than September 2023 (two years after final disposition). Which statement best describes the word
"competency" as it relates to appraisal practice? - CORRECT ANSWER It is fundamental to the definition of "appraiser." 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? - CORRECT ANSWER Use a hypothetical condition to complete the assignment as though the appraiser already had the knowledge and experience In order to perform an assignment for which an appraiser initially lacks the knowledge and experience to complete competently, the appraiser must: - CORRECT ANSWER Disclose to the client, prior to agreeing to perform the assignment, the lack of knowledge or experience The requirement to create and maintain a workfile for an appraisal or appraisal review assignment applies to: - CORRECT ANSWER All appraisers, regardless of credential level Three appraisers work together on an appraisal assignment. What would NOT be an appropriate workfile arrangement under USPAP? - CORRECT ANSWER The workfile is posted on the Internet, so that anyone who wants to see it will be able to access it. Appraisers have broad _________ and significant _________ in determining the appropriate scope of
cause the assignment results to be _________. - CORRECT ANSWER Biased An appraiser's report must contain ____________ to allow intended users to understand the scope of work performed. - CORRECT ANSWER Sufficient information If a client's objectives result in an appraiser developing biased assignment results: - CORRECT ANSWER The appraiser is solely responsible The SCOPE OF WORK RULE provides appraisers with significant flexibility. Along with that flexibility comes: - CORRECT ANSWER Responsibility 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: - CORRECT ANSWER Reconsider the scope of work before proceeding An appraiser's peers are defined as other appraisers who: - CORRECT ANSWER Have expertise and competency in a similar type of assignment In reporting the scope of work in an appraisal or appraisal review report: - CORRECT ANSWER 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. - CORRECT ANSWER True When a law or regulation precludes compliance with any part of USPAP, appraisers must: - CORRECT ANSWER Comply with that law or regulation What is the purpose of the JURISDICTIONAL EXCEPTION RULE? - CORRECT ANSWER To provide a saving or severability clause to preserve the balance of USPAP If an assignment involves a jurisdictional exception, what must an appraiser do? - CORRECT ANSWER 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 As used in the JURISDICTIONAL EXCEPTION RULE, the term "law" includes ____________. - CORRECT ANSWER All of these answers: Administrative rules and ordinances, Legislative Laws, Court-Made Laws The use of the JURISDICTIONAL EXCEPTION RULE in an assignment is a matter of choice by an
The requirements of STANDARD 1 can be used as a checklist by an appraiser who is developing a real property appraisal. - CORRECT ANSWER True If a mortgage borrower receives a copy of an appraisal report from a mortgage lender as a result of disclosure requirements: - CORRECT ANSWER This does not make the borrower an intended user When does a series of minor errors potentially result in a USPAP violation? - CORRECT ANSWER When the series of errors affects the credibility of the results 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? - CORRECT ANSWER Omit the client's identity from the report but document the client's identity in the workfile Which statement is TRUE regarding exposure time?
- CORRECT ANSWER It is always assumed to precede the effective date of the appraisal. Exposure time is: - CORRECT ANSWER An opinion developed by an appraiser When appraising a property with proposed
improvements, what type of value opinion is permitted by USPAP? - CORRECT ANSWER Both current and prospective values An example of a relevant property characteristic that could affect a real property appraisal assignment would be: - CORRECT ANSWER The fact that the subject property is affected by an easement What is the primary purpose of an appraiser making an inspection of the subject property? - CORRECT ANSWER To collect information about characteristics that are relevant to value 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. - CORRECT ANSWER Hypothetical condition An extraordinary assumption may be used in an assignment only if: - CORRECT ANSWER Required to develop credible results An unacceptable assignment condition would be a condition that: - CORRECT ANSWER All of the answers listed: Limits the scope of work to the extent that the value opinion is not credible, Precludes an
The process of reconciliation entails ___________. - CORRECT ANSWER Careful consideration of the quality and quantity of data When is it necessary to analyze prior listings of the subject property in a real property appraisal assignment? - CORRECT ANSWER When such analysis is relevant to the current assignment STANDARD 2 sets forth requirements for - CORRECT ANSWER Appraisal report content The use of standard appraisal reporting forms - CORRECT ANSWER Is not required by STANDARD 2 What is the essential difference between the two reporting options? - CORRECT ANSWER The content and level of information The two written report options stated in Standards Rule 2-2 are - CORRECT ANSWER Appraisal Report and Restricted Appraisal Report Which of the following is NOT required by USPAP to be in an Appraisal Report? - CORRECT ANSWER
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? - CORRECT ANSWER All of these actions must be taken: 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, Document the identity of the client in the workfile When reporting the results of an appraisal, dates that must be included are - CORRECT ANSWER Effective date and report date In an Appraisal Report, the scope of work used to develop the appraisal must be - CORRECT ANSWER summarized 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? - CORRECT ANSWER State the reason for the exclusion of the approach When an extraordinary assumption is used in an appraisal, the report must state the extraordinary assumption and - CORRECT ANSWER state that its use may have affected the assignment results
