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USPAP practice questions

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Question 1Preamble, Ethics Rule, and Definitions

According to the Preamble, what is the primary purpose of USPAP?

  1. To replace state licensing requirements for appraisers
  2. To set maximum fees that appraisers may charge
  3. To promote and maintain public trust in appraisal Correct answer.
  4. To guarantee the accuracy of every appraisal report

Explanation

The Preamble states that USPAP exists to promote and maintain a high level of public trust in appraisal practice by establishing requirements for appraisers. It does not set fees, replace licensing, or guarantee accuracy.

Question 2Preamble, Ethics Rule, and Definitions

The Preamble states that appraisers must perform valuation services in a manner that is:

  1. approved by the client before delivery
  2. independent, impartial, and objective Correct answer.
  3. consistent with the client's intended outcome
  4. profitable and efficient

Explanation

The Preamble identifies independence, impartiality, and objectivity as foundational principles for appraisers. Client approval of results and profitability are not the governing standards.

Question 3Preamble, Ethics Rule, and Definitions

An appraiser is asked to appraise a property and is told the report must conclude a value of at least $500,000 for the client's loan to close. What does the Ethics Rule require?

  1. Decline the assignment due to a predetermined opinion Correct answer.
  2. Accept and report the value as an extraordinary assumption
  3. Accept if the appraiser independently agrees with that value
  4. Accept and disclose the client's condition in the report

Explanation

The Conduct section prohibits accepting an assignment that includes reporting predetermined opinions or conclusions. A required minimum value is a predetermined conclusion, and disclosure does not cure the prohibition.

Question 4Preamble, Ethics Rule, and Definitions

Under the Ethics Rule, an appraiser's compensation for an assignment may be:

  1. paid only if the value meets a target
  2. increased if the opinion exceeds a benchmark
  3. fixed without regard to the amount of value Correct answer.
  4. based on a percentage of the appraised value

Explanation

The Ethics Rule prohibits compensation that is contingent on the amount of value or direction of value. A fixed fee that does not depend on the value conclusion is permissible.

Question 5Preamble, Ethics Rule, and Definitions

An appraiser's advertising states 'We guarantee the highest value in town.' How does the Ethics Rule address this?

  1. It permits the statement if it appears in small print
  2. It allows the statement when the client requests the language
  3. It bars advertising that is false, misleading, or exaggerated Correct answer.
  4. It requires only that the appraiser's fee be disclosed in the ad

Explanation

The Conduct section prohibits advertising or soliciting assignments in a manner that is false, misleading, or exaggerated. A promise to produce the highest value is exaggerated and misleading.

Question 6Preamble, Ethics Rule, and Definitions

An appraiser who is not designated by a professional organization lists a designation after their name anyway. This violates the Ethics Rule because an appraiser must not:

  1. use a designation in a false or misleading manner Correct answer.
  2. advertise any professional designation in any format
  3. list credentials without obtaining the client's consent
  4. belong to more than one appraisal organization at once

Explanation

The Conduct section prohibits using a professional designation in a false or misleading manner. Claiming a designation the appraiser does not hold is misleading.

Question 7Preamble, Ethics Rule, and Definitions

The Ethics Rule's Conduct section states that an appraiser must not engage in:

  1. appraisal review assignments
  2. criminal conduct Correct answer.
  3. any outside employment
  4. oral report communication

Explanation

The Conduct section expressly prohibits an appraiser from engaging in criminal conduct. Outside employment, review work, and oral reporting are not categorically prohibited.

Question 8Preamble, Ethics Rule, and Definitions

An appraiser knowingly overstates the comparable sales in a report to support a higher value. This conduct is prohibited because an appraiser must not:

  1. knowingly misrepresent facts Correct answer.
  2. use more than three comparables
  3. include photographs in a report
  4. communicate with the borrower

Explanation

The Conduct section prohibits knowingly misrepresenting facts and being misleading. Overstating comparable sales is a knowing misrepresentation.

Question 9Preamble, Ethics Rule, and Definitions

The Management section of the Ethics Rule primarily requires that appraisal firm management:

  1. approve every opinion of value before delivery
  2. hire only certified appraisers
  3. ensure firm policies comply with USPAP Correct answer.
  4. set a minimum fee schedule for all staff

Explanation

The Management section requires firm management to ensure that policies and procedures are consistent with USPAP and that employees do not communicate misleading reports. It does not impose the other listed requirements.

Question 10Preamble, Ethics Rule, and Definitions

An appraiser completes an appraisal for a lender. Under the Confidentiality section, the appraiser may disclose the assignment results to which party without client authorization?

  1. The property owner, who is not the client
  2. A competing lender who requests a copy
  3. A state enforcement agency with legal authority Correct answer.
  4. A local real estate agent working on the sale

Explanation

The Confidentiality section permits disclosure to the client and authorized persons, state enforcement agencies, parties authorized by due process, and peer review committees in certain circumstances. A competing lender, a non-client owner, and a real estate agent are not automatic exceptions.

Question 11Preamble, Ethics Rule, and Definitions

The Confidentiality section requires an appraiser to:

  1. disclose all assignment results to intended users
  2. keep all workfiles in a locked office
  3. obtain a client's written consent before every phone call is made
  4. take reasonable steps to safeguard confidential information Correct answer.

Explanation

The Confidentiality section requires appraisers to take reasonable steps to safeguard confidential information. It does not impose a blanket locked-office rule, a written-consent rule for every call, or a duty to disclose all results to every intended user.

Question 12Preamble, Ethics Rule, and Definitions

Under the Record Keeping section, an appraiser must prepare a workfile for an assignment:

  1. whether or not a written report is provided Correct answer.
  2. only when the client specifically requests a workfile
  3. only when the appraiser delivers a written report
  4. only if the assignment is unusually complex

Explanation

The Record Keeping section requires a workfile for each assignment regardless of whether a written report is provided. The workfile must exist at the time the report is completed.

Question 13Preamble, Ethics Rule, and Definitions

An appraiser completes an appraisal report on March 1, 2024, and later testifies in a judicial proceeding about the assignment that concludes on June 1, 2026. Under the Record Keeping section, the appraiser must retain the workfile for at least until:

  1. June 1, 2031
  2. March 1, 2026
  3. June 1, 2028
  4. March 1, 2029 Correct answer.

Explanation

The workfile must be retained for at least five years after the date of the report or at least two years after final disposition of a judicial proceeding in which the appraiser testified, whichever is later. Five years after March 1, 2024, is March 1, 2029, which is later than June 1, 2028.

Question 14Preamble, Ethics Rule, and Definitions

USPAP defines an appraiser as one who is expected to perform valuation services:

  1. only after obtaining a current state license to practice
  2. competently, independently, impartially, and objectively Correct answer.
  3. at the lowest fee available in the local market
  4. only for federally regulated lending institutions

Explanation

The definition of appraiser describes someone expected to perform valuation services competently and in a manner that is independent, impartial, and objective. Licensing, fee level, and client type are not part of the definition.

Question 15Preamble, Ethics Rule, and Definitions

USPAP defines an assignment as:

  1. a valuation service provided under an appraiser-client agreement Correct answer.
  2. any communication between an appraiser and a property owner or borrower
  3. a written report delivered to a lender
  4. the appraiser's final opinion of value

Explanation

An assignment is a valuation service provided as a consequence of an agreement between an appraiser and a client. It is not limited to a written report or to the final value opinion.

Question 16Preamble, Ethics Rule, and Definitions

USPAP defines assignment results as:

  1. the fee paid for the valuation service by the client
  2. all data and photographs collected during an appraisal
  3. opinions and conclusions developed for the assignment Correct answer.
  4. the client's written instructions for the assignment

Explanation

Assignment results are an appraiser's opinions and conclusions developed specific to an assignment. Data, instructions, and fees are not assignment results.

Question 17Preamble, Ethics Rule, and Definitions

USPAP defines the client as the party who:

  1. receives the appraisal report from the lending institution
  2. regulates the appraiser's license and professional conduct
  3. engages an appraiser by contract for a specific assignment Correct answer.
  4. owns the property that is the subject of the appraisal

Explanation

The client is the party or parties who engage an appraiser by employment or contract in a specific assignment. Property ownership, report receipt, and regulatory authority do not define the client.

Question 18Preamble, Ethics Rule, and Definitions

An appraiser identifies the client and, based on communication with the client at the time of the assignment, names a lender's loan officer as an additional user in the report. Under USPAP, that loan officer is:

  1. an intended user identified by name or type Correct answer.
  2. an unintended user because only the client may use the report
  3. a third-party observer with no defined role
  4. the client for purposes of confidentiality

Explanation

Intended users include the client and any other party identified by name or type as a user based on communication with the client at the time of the assignment. Naming the loan officer makes that person an intended user.

Question 19Preamble, Ethics Rule, and Definitions

An appraiser makes an assumption directly related to a specific assignment that, if found to be false, could alter the appraiser's opinions or conclusions. USPAP defines this as:

  1. a confidential information item
  2. an extraordinary assumption Correct answer.
  3. a hypothetical condition used for analysis
  4. a bias that affects objectivity

Explanation

An extraordinary assumption is directly related to a specific assignment and, if found to be false, could alter the appraiser's opinions or conclusions. A hypothetical condition is contrary to known facts, and bias and confidential information are unrelated definitions.

Question 20Preamble, Ethics Rule, and Definitions

USPAP defines a hypothetical condition as a condition that is:

  1. the same as an extraordinary assumption in all cases
  2. contrary to known facts on the effective date Correct answer.
  3. known to be true on the effective date of the appraisal
  4. required by the client in every appraisal assignment

Explanation

A hypothetical condition is contrary to what is known by the appraiser to exist on the effective date but is used for analysis. It is not the same as an extraordinary assumption.

Question 21Preamble, Ethics Rule, and Definitions

USPAP defines confidential information as information that is either identified by the client as confidential when provided and not available from any other source, or:

  1. classified as confidential by applicable law or regulation Correct answer.
  2. shared orally rather than in a written format
  3. known to the appraiser before the assignment formally began
  4. included in the appraiser's workfile

Explanation

Confidential information includes client-identified information that is not available from another source or information classified as confidential or private by applicable law or regulation. Oral form, prior knowledge, and workfile inclusion do not independently make information confidential.

Question 22Preamble, Ethics Rule, and Definitions

USPAP defines bias as a preference or inclination that:

  1. must be disclosed to the client in every assignment
  2. is required for a credible assignment
  3. improves an appraiser's efficiency
  4. precludes impartiality, independence, or objectivity Correct answer.

Explanation

Bias is a preference or inclination that precludes an appraiser's impartiality, independence, or objectivity. It is not a requirement for credibility or a mere efficiency factor.

Question 23Preamble, Ethics Rule, and Definitions

USPAP defines a report as any communication of an appraisal or appraisal review that is:

  1. sent to the client when the assignment is complete Correct answer.
  2. kept solely in the appraiser's confidential workfile
  3. prepared only in a written format
  4. filed with the state appraisal board

Explanation

A report is any communication, written or oral, of an appraisal or appraisal review transmitted to the client upon completion of an assignment. It is not limited to written formats or workfile contents.

Question 24Preamble, Ethics Rule, and Definitions

USPAP defines a workfile as documentation necessary to:

  1. calculate the appraiser's fee for the assignment
  2. advertise the appraiser's services to prospective clients
  3. replace the client's own records and files
  4. support the appraiser's analyses and conclusions Correct answer.

Explanation

A workfile is the documentation necessary to support an appraiser's analyses, opinions, and conclusions. It is not for advertising, replacing client records, or calculating fees.

Question 25Preamble, Ethics Rule, and Definitions

USPAP defines appraisal practice as valuation services performed by an individual acting as an appraiser, including:

  1. home inspection and structural engineering
  2. appraisal, review, and consulting Correct answer.
  3. property management and real estate brokerage
  4. accounting and income tax preparation

Explanation

Appraisal practice includes appraisal, appraisal review, and appraisal consulting performed by an individual acting as an appraiser. Property management, brokerage, inspection, engineering, and accounting are not included in that definition.

Question 26Preamble, Ethics Rule, and Definitions

According to the Preamble, the purpose of USPAP is:

  1. to promote and maintain public trust in appraisal practice Correct answer.
  2. to standardize appraisal fees across all jurisdictions
  3. to prescribe the form and format of appraisal reports
  4. to guarantee the accuracy of every value opinion reported

Explanation

The Preamble states that the purpose of USPAP is to promote and maintain a high level of public trust in appraisal practice by establishing requirements for appraisers. It sets performance requirements for the appraisal process rather than regulating fees, report formats, or outcomes.

Question 27Preamble, Ethics Rule, and Definitions

Under the Ethics Rule, an appraiser must not accept an assignment in which the compensation to be paid is contingent on:

  1. the amount of the value opinion developed in the assignment Correct answer.
  2. the amount of time the appraiser spends inspecting the property
  3. the appraiser delivering the report by a stated due date
  4. the number of comparable sales verified by the appraiser

Explanation

The Ethics Rule prohibits compensation that is contingent on the development of a predetermined opinion or conclusion, a direction in value, the amount of the value opinion, or other events directly related to the intended use. Deadlines, research volume, and time spent are not prohibited bases for compensation.

Question 28Preamble, Ethics Rule, and Definitions

USPAP defines an appraisal as:

  1. a service limited to assignments for federally related transactions
  2. the process of inspecting a property and collecting market data
  3. the act or process of developing an opinion of value Correct answer.
  4. the research and analysis performed before a value conclusion is formed

Explanation

The Definitions describe an appraisal as the act or process of developing an opinion of value, and also as an opinion of value. The definition does not depend on the reporting format or on the type of client served.

Question 29Preamble, Ethics Rule, and Definitions

USPAP defines a jurisdictional exception as:

  1. a waiver of USPAP requirements granted to the appraiser by the client
  2. a legal requirement that precludes compliance with part of USPAP Correct answer.
  3. written permission from a state board to deviate from USPAP
  4. a court order requiring testimony about a completed assignment

Explanation

A jurisdictional exception is an assignment condition established by applicable law or regulation that precludes an appraiser from complying with a part of USPAP. Where it applies, the appraiser must comply with the exception and disclose it in the report.

Question 30Preamble, Ethics Rule, and Definitions

Before accepting an assignment, an appraiser is told by the lender that the report must support a value of at least $450,000 for the loan to close. The appraiser accepts the assignment. This acceptance is:

  1. prohibited, unless the appraiser's fee is fixed rather than contingent
  2. prohibited, because the assignment calls for a predetermined opinion Correct answer.
  3. permitted, because the lender is the client and defines the scope of work
  4. permitted, if the appraiser discloses the lender's target in the report

Explanation

The Conduct section of the Ethics Rule prohibits accepting an assignment that includes the reporting of a predetermined opinion or conclusion or a direction in value. Disclosure does not cure the problem, and the client's status does not authorize a predetermined result.

Question 31Preamble, Ethics Rule, and Definitions

Under USPAP, the intended user of an assignment is:

  1. the client and any other party identified at the time of the assignment Correct answer.
  2. the party who ordered the appraisal and controls the assignment results
  3. any party who later relies on the report, whether or not identified
  4. the party a state appraisal board names in its licensing rules

Explanation

Intended user is defined as the client and any other party identified, by name or type, as a user of the report, based on communication with the client at the time of the assignment. Reliance by unidentified third parties does not make them intended users.

Question 32Preamble, Ethics Rule, and Definitions

USPAP defines scope of work as:

  1. the range of value opinions an appraiser is willing to develop
  2. the type and extent of research and analyses in an assignment Correct answer.
  3. the extent of the appraiser's authority to disclose assignment results
  4. the geographic area in which the subject property is located

Explanation

Scope of work is defined as the type and extent of research and analyses in an appraisal or appraisal review assignment. It is determined by the appraiser and must be sufficient to produce credible assignment results.

Question 33Preamble, Ethics Rule, and Definitions

An appraiser delivered an appraisal report on June 1, 2023, and was not involved in any judicial proceeding concerning the assignment. Under the Record Keeping section of the Ethics Rule, the appraiser must retain the workfile for at least:

  1. five years after the date of the report Correct answer.
  2. two years after the date of the report
  3. three years after the date of the report
  4. one year after the date of the report

Explanation

The Record Keeping section requires the workfile to be retained for at least five years after delivery of the report, or at least two years after final disposition of a judicial proceeding in which the appraiser provided testimony related to the assignment, whichever is later. With no testimony involved, the five-year period governs.

Question 34Preamble, Ethics Rule, and Definitions

USPAP defines appraisal review as the act or process of developing and communicating an opinion about:

  1. the competence of an appraiser's supervisory arrangement within a firm
  2. the quality of another appraiser's work in an appraisal assignment Correct answer.
  3. the adequacy of a lender's underwriting decision on a proposed mortgage loan
  4. the value of the subject property as of a retrospective date chosen by the client

Explanation

Appraisal review is defined as the act or process of developing and communicating an opinion about the quality of another appraiser's work that was performed as part of an appraisal or appraisal consulting assignment. It does not extend to underwriting decisions or personnel evaluations.

Question 35Preamble, Ethics Rule, and Definitions

USPAP defines a signature as:

  1. an electronic code that verifies the report was delivered to the client
  2. the certification statement included in every written appraisal report
  3. personalized evidence of authentication and acceptance of responsibility Correct answer.
  4. a handwritten mark applied to a report by the appraiser who prepared it

Explanation

The Definitions describe a signature as personalized evidence indicating authentication of the work performed by the appraiser and the appraiser's acceptance of responsibility for the content, conclusions, and other work product. USPAP does not limit signatures to handwritten marks, and electronic signatures are acceptable.

Question 36Preamble, Ethics Rule, and Definitions

The Conduct section of the Ethics Rule provides that an appraiser must not use or communicate a report or assignment results:

  1. that include a hypothetical condition
  2. unless the report has been reviewed by a peer
  3. known by the appraiser to be misleading Correct answer.
  4. that differ from the client's stated expectations

Explanation

The Conduct section states that an appraiser must not use or communicate a report or assignment results known to be misleading. Hypothetical conditions are permitted when properly disclosed, and a client's expectations do not control the appraiser's conclusions.

Question 37Preamble, Ethics Rule, and Definitions

An appraiser delivered a report on April 10, 2020, and testified about the assignment in a judicial proceeding that reached final disposition on September 15, 2023. Under the Record Keeping section of the Ethics Rule, the workfile must be retained until at least:

  1. September 15, 2023
  2. April 10, 2025
  3. September 15, 2025 Correct answer.
  4. April 10, 2028

Explanation

The workfile must be retained for at least five years after delivery of the report or at least two years after final disposition of a judicial proceeding in which the appraiser provided testimony related to the assignment, whichever period expires later. Five years after delivery is April 10, 2025; two years after final disposition is September 15, 2025, which is later and therefore controls.

Question 38Preamble, Ethics Rule, and Definitions

USPAP defines intended use as:

  1. the scope of work the appraiser determines is necessary for credible results
  2. the purpose for which the client's lender will rely on the completed report
  3. the parties the appraiser identifies as users of the report
  4. the use or uses of the assignment results identified by the appraiser Correct answer.

Explanation

Intended use is defined as the use or uses of an appraiser's reported opinions and conclusions, identified by the appraiser based on communication with the client at the time of the assignment. It is distinct from the scope of work and from the identity of the intended users.

Question 39Preamble, Ethics Rule, and Definitions

Under the Record Keeping section of the Ethics Rule, an appraiser who does not personally keep the workfile must:

  1. obtain the client's written consent before discarding it
  2. make appropriate workfile retention, access, and retrieval arrangements Correct answer.
  3. file a copy of the workfile with the state appraisal board
  4. deliver the original workfile to the client at the conclusion of the assignment

Explanation

The Record Keeping section requires the appraiser to have custody of the workfile or to make appropriate workfile retention, access, and retrieval arrangements with the party having custody. Such arrangements do not relieve the appraiser of the responsibility to retain the file.

Question 40Preamble, Ethics Rule, and Definitions

A client asks an appraiser to analyze whether a proposed mixed-use development can be supported by market demand and to recommend which of three unit mixes to build; an opinion of value is one component of the analysis. Under USPAP, this assignment is best described as:

  1. appraisal consulting, because an opinion of value is a component of the analysis Correct answer.
  2. an appraisal, because an opinion of value is developed
  3. an appraisal review, because the appraiser evaluates a proposed plan
  4. a market study outside appraisal practice, because a value opinion is not the goal

Explanation

Appraisal consulting is the act or process of developing an analysis, recommendation, or opinion to solve a problem, where an opinion of value is a component of the analysis leading to the assignment results. Because the requested recommendation goes beyond a value opinion while still relying on one, the assignment is appraisal consulting.

Question 41Standard 1 - Real Property Appraisal, Development

Who is responsible for determining the scope of work in a real property appraisal assignment?

  1. The client, because the client defines the purpose of the assignment
  2. The appraiser, after considering the intended use and the expectations of parties who regularly use such services Correct answer.
  3. The intended users, because their needs dictate the research that is performed
  4. The state licensing agency, because minimum scope is set by regulation

Explanation

Under the SCOPE OF WORK RULE the appraiser is responsible for determining the scope of work. The appraiser considers the client's requests and the intended use, but must decide what research and analysis are necessary to produce credible assignment results.

Question 42Standard 1 - Real Property Appraisal, Development

USPAP requires an appraiser to retain the workfile for an appraisal for at least:

  1. Two years after preparation or five years after final disposition of a judicial proceeding, whichever is later
  2. Five years after preparation or two years after final disposition of a judicial proceeding, whichever is later Correct answer.
  3. Five years after the effective date of the appraisal or two years after delivery of the report, whichever is later
  4. Three years after preparation or one year after delivery of the report, whichever is later

Explanation

The workfile retention requirement is five years after preparation of the appraisal or two years after final disposition of a judicial proceeding in which the appraiser gave testimony, whichever is later. The workfile must contain the data and analysis supporting the opinions and conclusions.

Question 43Standard 1 - Real Property Appraisal, Development

When testing highest and best use, which test is applied first?

  1. Physically possible
  2. Financially feasible
  3. Legally permissible Correct answer.
  4. Maximally productive

Explanation

The four tests are applied in sequence: legally permissible, physically possible, financially feasible, and maximally productive. A use that fails the legal test is eliminated before the remaining tests are considered.

Question 44Standard 1 - Real Property Appraisal, Development

An appraiser values a property as though a proposed zoning change had already been approved, although it has not. The appraiser is relying on:

  1. A hypothetical condition Correct answer.
  2. A jurisdictional exception
  3. A prospective value opinion
  4. An extraordinary assumption

Explanation

A hypothetical condition is that which is contrary to what exists but is supposed for purposes of analysis. Assuming a zoning change is already in effect is the classic example, and the condition must be disclosed.

Question 45Standard 1 - Real Property Appraisal, Development

An appraisal whose effective date precedes the date the report is issued is:

  1. Permitted only if the client signs a waiver of the effective date
  2. Permitted; the effective date may be retrospective Correct answer.
  3. Permitted only if the appraiser inspects the property after the effective date
  4. Not permitted; the effective date must equal the report date

Explanation

The appraiser must identify the effective date of the appraisal, which may be earlier than, the same as, or later than the date of the report. A retrospective effective date is a normal assignment condition and is disclosed in the report.

Question 46Standard 1 - Real Property Appraisal, Development

In identifying the intended users of an appraisal, the appraiser must:

  1. Identify them through communication with the client at the time of the assignment Correct answer.
  2. Defer entirely to the client's judgment, since intended users are defined by the client
  3. Identify every party who might at some point read the report, regardless of the client's stated purpose
  4. Identify them only when the assignment results will be used in a federally related transaction

Explanation

Intended users are the client and any other party identified by name or type as users of the appraisal, as determined by the appraiser on the basis of communication with the client at the time of the assignment.

Question 47Standard 1 - Real Property Appraisal, Development

A loss in value caused by a floor plan that is outdated relative to current market preferences is:

  1. Functional obsolescence Correct answer.
  2. Deferred maintenance
  3. Physical deterioration
  4. External obsolescence

Explanation

Functional obsolescence is a loss in value resulting from a deficiency or superadequacy in the property itself, such as an outdated layout. Physical deterioration results from wear and tear, while external obsolescence comes from outside the property.

Question 48Standard 1 - Real Property Appraisal, Development

In the sales comparison approach, adjustments are applied to:

  1. The final indicated value, to reflect market conditions at the report date
  2. Each comparable sale, to reflect how it differs from the subject property Correct answer.
  3. Both the subject and each comparable, in equal amounts
  4. The subject property, to make it comparable to each sale

Explanation

The comparable sales are adjusted so that they reflect the characteristics of the subject property. Adjustment amounts are derived from market evidence rather than applied to the subject or split equally.

Question 49Standard 1 - Real Property Appraisal, Development

An appraiser completes an assignment for a lender using only public records and multiple listing service data, with no inspection of the property. Under USPAP:

  1. The scope of work may be reduced below what is needed, as long as the report discloses it
  2. The assignment is acceptable only if the client signs a statement accepting all risk
  3. The assignment is unacceptable, because USPAP requires an interior inspection for every appraisal
  4. The scope of work must be sufficient to produce credible results and must be disclosed Correct answer.

Explanation

The SCOPE OF WORK RULE requires the scope to be sufficient to produce credible assignment results given the intended use, and the scope actually performed must be disclosed. USPAP does not mandate an interior inspection in every assignment.

Question 50Standard 1 - Real Property Appraisal, Development

An appraiser is told by the owner that the roof was replaced two years ago, but no invoice or permit is available. The appraiser relies on that statement in forming the opinion of value. The reliance is best characterized as:

  1. A general assumption that requires no disclosure
  2. A jurisdictional exception that must be disclosed
  3. A hypothetical condition that must be disclosed
  4. An extraordinary assumption that must be disclosed Correct answer.

Explanation

An extraordinary assumption is directly related to a specific assignment and concerns uncertain information the appraiser believes to be true; if it proves false, the opinion could change. Because of that effect, it must be disclosed.