Commercial Appraisal Review || All Answers Are Correct
100%.
What did review appraiser Larry Anderson mean when he said that a review appraiser needed to
have a split personality? correct answers The review appraiser has to be both a technician and a
diplomat
What is the primary function of the appraisal reviewer? correct answers Form an opinion
regarding the adequacy and appropriateness of the appraisal report
The scope of work of an appraisal review assignment can involve: correct answers Checking the
mathematical accuracy
Determining regulatory compliance
Developing an opinion of value
All of the above
While performing an appraisal review for a loan underwriting department, you need to contact
the appraiser to discuss some issues. Which statement below is correct? correct answers You
need to be diplomatic in your communications with the appraiser.
You are reviewing an appraisal that had an effective date of January 15, 2005, for the "as is"
value and an effective date of January 15, 2006 for the prospective value. The report's date is
February 15, 2005. Which edition of USPAP will you use to guide you in the performance of
YOUR appraisal review? correct answers The current edition of USPAP
"Appraisal review is the __________________________ of the appraisal profession." correct
answers Quality-control function
Which of the following is NOT one of the four purposes of an appraisal review? correct answers
Due Diligence
As a review appraiser, you are permitted to assist an attorney in litigation by: correct answers
Advising the attorney on matters of standards and professional ethics
Which STANDARD in USPAP governs the development of an appraisal review? correct
answers STANDARD 3
In performing an appraisal review for a lender considering a new loan, you read a brief reference
to a problem of environmental contamination on the subject property. As a reviewer, you should:
correct answers Highlight this issue in your review report to alert the lender of the issue
What is the most common way that quality is controlled in the appraisal profession? correct
answers Appraisal review
,Which would be considered an improper motivation for a review appraiser? correct answers
Identify all the problems contained in the appraisal report, to prove his or her superior
competence
Which of the following parts of USPAP would the reviewer be in danger of violating if he
performed a technical review on an appraisal of a property type he has never appraised? correct
answers COMPETENCY RULE
Which of the following would be a characteristic that would distinguish an administrative review
from a technical review? correct answers Performed by attorneys, accountants and bank
examiners
Which of the following four "types" of appraisal reviews can be performed without an appraiser
license or certification, without violating USPAP? correct answers Administrative
You have never performed an appraisal of a marina property, but have been asked to review an
appraisal of a marina. You want to accept the assignment. Your response MUST be correct
answers Notify the client that you do not have the competence to perform the review when you
accept the assignment
What type of review can be performed by the clerical support staff of the bank vice president?
correct answers Administrative review
You are performing a review that requires "passing judgment" on the merits of the appraisal and
a visit to the subject property. This type of review fits the definition of both a(n)
________________ review and a ________________ review. correct answers Technical / field
You are asked to review an appraisal of a casino located on Native American lands. You have
never appraised this type of property, but decide to accept the assignment. Which of the
following would NOT satisfy the competency requirements in USPAP to perform this appraisal
review? correct answers None, as competency is not an issue when simply performing an
appraisal review
While performing an appraisal review for a loan underwriting department, you need to contact
the appraiser to discuss some issues. Which statement below is correct? correct answers You
need to be diplomatic in your communications with the appraiser.
An accountant (not licensed as an appraiser) is reviewing an appraisal for a client. Which of the
following tasks would fall outside of his authority to perform an administrative review? correct
answers Evaluating the merits of the reconciliation analysis
In the case study, you were presented with a review assignment in a state in which you are not
licensed. Which of the following statements is true regarding this assignment? correct answers
You need to investigate the license requirements for appraisal reviews in the state where the
property is located.
,You are reviewing an appraisal that had an effective date of January 15, 2005, for the "as is"
value and an effective date of January 15, 2006 for the prospective value. The report's date is
February 15, 2005. Which edition of USPAP will you use to guide you in the performance of
YOUR appraisal review? correct answers The current edition of USPAP
Which STANDARD in USPAP governs the reporting of an appraisal review? correct answers
STANDARD 4
The scope of work of an appraisal review assignment can involve: correct answers Checking the
mathematical accuracy
Determining regulatory compliance
Developing an opinion of value
All of the above
In the second edition of Appraising the Appraisal by Richard Sorenson, MAI, which of the
following items is NOT one of the six reasons listed as a need for real estate appraisal reviews?
correct answers To approve the appraisal for payment of the appraisal fee
A client has had an appraisal report prepared to support a tax deduction on a charitable
contribution. The IRS had an internal staff member review the report, and the appraisal was
rejected. The IRS appraisal review report was provided to your client in an audit, and he has
asked you to review the IRS staff person's review of the appraisal. Which of the following is
TRUE? correct answers You can accept this assignment because STANDARD 3 governs review
of "appraisals and appraisal reviews reports."
In the diagram from USPAP Advisory Option 21, where would an administrative review by a
mortgage underwriter fall? correct answers Valuation services
You are a Certified General Appraiser. You are at a party, chatting with a friend who knows you
are an appraiser and who mentions that he just obtained an appraisal for a refinance of his home.
He tells you the value in the appraisal and asks your opinion about whether he should appeal the
appraisal due to the low value the appraiser determined. You respond that you think that "the
appraisal was probably too low" and that your friend should appeal to the lender for a new
appraisal. Which of the following is TRUE? correct answers You have performed an appraisal
review and must comply with all USPAP requirements.
An administrative review performed by an unlicensed employee of a financial institution would
be considered part of: correct answers Valuation services
What are the review appraiser's options if, during the review process, she concludes that the
value in the original appraisal is incorrect? correct answers The reviewer can adopt the parts of
the original report that are credible, augment that information with additional research, analysis
and conclusions, and express her own opinion of value in the review report
A client contacts a General Certified Appraiser and asks for a review. The client sends the
appraiser the Income Approach section from an appraisal report of an office building, and asks
, the appraiser to review it. Under USPAP, can the appraiser review just part of an appraisal
report? correct answers Yes, it is acceptable to review only part of an appraisal report
Which of the following choices properly completes the definition of Appraisal Review found in
USPAP? "Appraisal Review: the act or process of developing and communicating a/an
_________ about the __________ of another appraiser's work that was performed as part of an
appraisal, appraisal review, or appraisal consulting assignment." correct answers Opinion,
quality
Which statement is INCORRECT regarding the review appraiser's scope of work? correct
answers The scope of work of the reviewer must be the same as the scope of work of the
appraisal under review.
What is the major danger pointed out in Advisory Opinion 20 of which the review appraiser must
be aware? correct answers Implying that the reviewer is expressing an opinion of value without
intending to do so
How may "parts" will there be in the review report if the review appraiser expresses an opinion
of value? correct answers Two; one part would be on the quality of the appraisal and one part
would be the reviewer's separate value opinion
A lease agreement has a provision for rental rate under a renewal option. It provides for both the
landlord and tenant to have a market rent opinion developed by a licensed appraiser. If their
conclusions do not agree, a third appraiser would be hired to reconcile the two rent market
opinions. You are hired by the parties to prepare a review of the two rent market opinions to
reconcile the two and reach a final rental value opinion. Which of the following is TRUE?
correct answers You can accept this assignment.
In reviewing an appraisal with an effective date and report date of two years ago, you discover
that some significant information was missing that affects the value conclusion. You discover,
however, that the information had not been publicly released when the original appraisal was
being prepared. Your review assignment entails developing your own value opinion. Your
response to this additional information should be: correct answers Utilize the information in your
review and in your own value conclusion, but do not impeach the appraisal for missing
information not available that time of its preparation
Can an appraiser discuss another appraiser's work without that discussion falling under
STANDARDs 3 and 4 of USPAP? correct answers Yes, if the discussion is not evaluating the
quality of the other appraiser's work or expressing an opinion of value about the subject of that
appraisal
A Certified Residential Appraiser is given an assignment to review an appraisal of farmland in a
rural county in central Idaho, many miles from where his normal residential appraisal practice in
the urban area around Boise, Idaho. Can he accept this review assignment? Why or why not?
Select the BEST answer. correct answers No. His level of licensing is not "equivalent or higher"
than that required to perform the appraisal that is the subject of the appraisal under review.
