USPAP 15-Hour Course With Complete Solutions 2023

USPAP 15-Hour Course With Complete Solutions 2023 The Preamble states that USPAP is - Correct Answer-for appraisers and users of appraisal services. The stated purpose of USPAP - Correct Answer-Promote and maintain a high level of public trust in appraisal practice. When obligated by law or regulation an appraiser must - Correct Answer-comply with USPAP. USPAP applies to which types of properties? - Correct Answer-Tangible and Intangible Valuation services - Correct Answer-is not a subset of appraisal practice. An appraiser has the professional responsibility - Correct Answer-to identify the capacity in which he or she is performing. Reasons why an appraiser would prepare an appraisal assignment in conformance with USPAP - Correct Answer-1. Agreement with client. 2. Law or regulation. 3. Voluntary choice. An appraiser who provides an appraisal service that is not an appraisal, appraisal review, or appraisal consulting assignment does not have workfile obligations associated with the assignment. - Correct Answer-True An individual is not prohibited from providing valuation services that involve advocacy while acting as an appraiser. - Correct Answer-False When performing valuation services outside of appraisal practice, appraisers must be careful not to _________________ the client and other intended users about their role. - Correct Answer-Mislead 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 acting as an appraiser. An appraiser is engaged to teach an appraisal course. What parts of USPAP apply? - Correct Answer-The parts of USPAP that apply generally to appraisal practice. The Appraisal Practices Board (APB) was created when? - Correct Answer-2010 The APB is a(n) - Correct Answer-independent board. Boards within The Appraisal Foundation (TAF) - Correct Answer-1. Board of Trustees (BOT) 2. Appraisal Standards Board (ASB) 3. Appraisal Qualifications Board (AQB) 4. Appraisal Practices Board (APB) APB is a - Correct Answer-private entity. The APB has authority to enforce the requirements of USPAP. - Correct Answer-False Who has the only jurisdiction and authority over appraisers? - Correct Answer-States ASB - Correct Answer-Develops, interprets, and amends USPAP. Advisory opinions - Correct Answer-Not part of USPAP; reference material only. APB - Correct Answer-Guidance is voluntary. ASC - Correct Answer-Maintains the official National Registry of state certified and licensed appraisers. State appraisal regulatory committees - Correct Answer-responsible for issuing credentials to individual appraisers. Responsibilities of ASC: - Correct Answer-• Establishes, improves, and promulgates the USPAP • Subject, content, and substance of USPAP and other communication related to appraisal standards. • Establishes standards of professional appraisal practice for the guidance and education of appraisers and users of appraisal services. • Maintains the official National Registry of state certified and licensed appraisers. Developing, amending, and interpreting USPAP is NOT a responsibility of - Correct Answer-ASC 12. USPAP divides the appraisal process into two distinct types of activity: - Correct Answer-Develop and report Identify the problem - Correct Answer-The first step in the appraisal process. Communication - Correct Answer-The reporting process involves ________________ of the appraiser's opinions and conclusions. AQB - Correct Answer-• Disseminates to state appraisal boards the qualifications criteria for appraiser certifications and recertification. • Responsible for establishing education and experience requirements for licensing and certification of appraisers. BOT - Correct Answer-appoints members of the APB, AQB, ASB. The ethical obligations of USPAP apply to - Correct Answer-Individual appraisers. Bias - Correct Answer-is never allowed. In appraisal practice, advocating the cause or interest of any party or issue is - Correct Answer-never permitted. If an appraiser has appraised a property multiple times within the prior 3 years he must disclose the number of times he appraised the property to a prospective client. - Correct Answer-True 3 years - Correct Answer-Prior to accepting an assignment, an appraiser must disclose any service he provided regarding the subject property for a period of An appraiser has been asked to complete an appraisal assignment. The fee is to be paid when when the loan closes. According to USPAP, may the appraiser accept the assignment under the conditions? - Correct Answer-No The payment of fees by the appraiser in connection with the procurement of an assignment is - Correct Answer-allowed if properly disclosed. Confidential information is under USPAP is information the appraiser receives from - Correct Answer-the client an dis identified as confidential, but is not available from other sources. The disclosure of confidential information to a third party is unethical unless - Correct Answer-authorized by the client. Competency - Correct Answer-fundamental to the definition of appraiser. An appraiser must obtain the necessary competency prior to accepting the assignment. - Correct Answer-False In order to accept an assignment when an appraise initially lacks the knowledge and experience to complete an assignment competently he must - Correct Answer-Disclose to the client, prior to accepting, the lack of knowledge or experience. USPAP ________________ permit an appraiser to create a workfile after transmitting the report to the client. - Correct Answer-does not An appraiser prepared an appraisal report in April 2009. He testified in court regarding the value of the property in January 2010. The decision was rendered in February 2010 and was appealed in March 2010. The appellate court heard the case in January 2011 and remanded the case for reconsideration by the lower court final disposition of the case occurred in Sept 2011. At a minimum, how long must the appraiser retain his workfile? - Correct Answer-April 2014 Three appraisers work together on an appraisal consulting assignment. What would NOT be an appropriate workfile arrangement under USPAP? - Correct Answer-The workfile is posted on the internet,s o that anyone who wants to see it will be able to see it. Trainer appraiser have the same workfile obligations under USPAP as certified or licensed appraisers. - Correct Answer-True An appraiser's peers - Correct Answer-Others who have expertise and competency in a similar type of assignment. Scope of Work in USPAP - Correct Answer-The report must contain sufficient information so that intended users understand the scope of work. Scope of work decision - Correct Answer-Exclusion of an approach that is not necessary for credible, results in a given assignment. Jurisdictional exception in an assignment - Correct Answer-Identify the law, comply with the laws, disclose in the report the part of USPAP that is voided, and cite in the report the law that caused it. Comply with the law or regulation - Correct Answer-When a law or regulation precludes compliance with any part of USPAP, appraisers must. Purpose of the Jurisdictional exclusion rule - Correct Answer-To provide a saving or severability clause to preserve the balance of USPAP. True - Correct Answer-If USPAP compliance is mandated by federal law, no state or local law can create a jurisdictional exclusion. Jurisdictional exclusion rule term "law" - Correct Answer-Legislative law, court-made laws, and administrative rules and ordinances. False - Correct Answer-Appraisers cannot be expected to be aware of all of the laws and regulations that apply to a particular assignment. False - Correct Answer-The use of the jurisdictional exclusion rule in an assignment is a matter of choice by an appraiser. False - Correct Answer-A state passes a law requiring appraisers to keep their workfiles for 10 years after preparation. This is considered a jurisdictional exclusion under USPAP. Jurisdictional exclusion example - Correct Answer-A probate court paying appraisers based on the value of the subject. Occurrence of a jurisdictional exclusion - Correct Answer-It is automatic when a law precludes compliance with a part of USPAP. 6 Standard Rules - Correct Answer-Standard 1 contains this many rules. The development of a real (only) property appraisal. It mirrors the appraisal process and can be used as a conventional checklist. - Correct Answer-Standard 1. The requirements of Standard 1. - Correct Answer-Used as a checklist by an appraiser who is developing a real property appraisal. does not require - Correct Answer-Standard 1 _________________ an appraiser to achieve perfection in developing a real property appraisal. When the series of errors affects the credibility of the results. - Correct Answer-When does a series of minor errors potentially result in a USPAP violation? Consider whether the extent of the planned development process and report are still appropriate. - Correct Answer-What should an appraiser do if, during the course of an assignment, becomes aware of a change in the intended use of the report? This does not make the borrower an intended user. - Correct Answer-If a borrower receives a copy of an appraisal report from a mortgage lender as a result of disclosure requirements: An appraiser must document the client's identity in the workfile. - Correct Answer-If a client wishes to remain anonymous the appraiser must: Exposure time - Correct Answer-Is always assumed to precede the effective date of the appraisal. False - Correct Answer-Identification of the intended use of an appraisers opinions and conclusions is not necessary in most appraisal assignments. Identify the special financing to form and develop an opinion on their effect on value. - Correct Answer-Special requirements when appraising the market value of a property subject to favorable financing. To collect information about characteristics that are relevant to value. - Correct AnswerThe primary purpose of an appraiser making an inspection of the subject property. True - Correct Answer-When appraising proposed improvements, both current and prospective value opinions are permitted by USPAP. The fact that the subject property is affected by an easement. - Correct Answer-An example of a relevant property characteristic that could affect a real property appraisal assignment. True - Correct Answer-An appraiser may use an combination of a property inspection and documentation in identifying relevant characteristics of the subject property. Hypothetical condition - Correct Answer-When an appraiser provides a current value opinion on a proposed new building based upon the proposed improves are completed as of the effective date of the appraisal. Extraordinary assumption - Correct Answer-Only if required to develop credible results. False - Correct Answer-A research assignment, in which an appraiser completes research for a client but does not develop an opinion or conclusion, is not part of appraisal practice. 1. Limits the scope of work to the extent that the value opinion is not credible. 2. Precludes an appraiser's impartiality. 3. Limits report content, resulting in a misleading report. - Correct Answer-Unacceptable assignment condition. Step 3 - Correct Answer-Date Collection and Analysis Market Analysis - Correct Answer-Demand Studies Supply Studies Marketability Studies Highest and Best Use Analysis - Correct Answer-Site as though vacant. Ideal Improvement Property as Improved Step 4 - Correct Answer-Application of the Approaches Value Cost / Sales Comps / Income Captitalization An assignment condition may require an appraiser to develop an approach that he or she would otherwise consider unnecessary. - Correct Answer-USPAP and the 3 approaches to value. The appraiser must analyze such data as are available to indicated value conclusion. - Correct Answer-When developing a sales comp approach under USPAP. Current Listings - Correct Answer-When analyzing listings of the subject property in a real property appraisal assignment, USPAP requires, at a minimum, ___________to be analyzed. Analyzed in the appraisal - Correct Answer-If an appraiser is asked to appraise a property on which there is known, current agreement of sale, the agreement must be All sales of the subject property that occurred within 3 years of the effective date of the appraisal. - Correct Answer-When analyzing the subject property's sales history in a real property appraisal assignment, an appraiser is required by USPAP to analyze Step 5 - Correct Answer-Reconciliation of Value Indications and Final Opinions of Value Careful consideration of the quality and quantity of data - Correct Answer-The process of reconciliation entails False - Correct Answer-Standard Rules 1-5 require an appraiser to analyze the sales history of the comps When such analysis is relevant to the current assignment - Correct Answer-When is it necessary to analyze prior listings of the subject property in a real property appraisal assignment. Step 6 - Correct Answer-Report of Defined Value Opinions Not required by Standard 2 - Correct Answer-The use of standard appraisal reporting forms. Standard 2 - Correct Answer-Sets forth requirements for appraisal report content. Summary Self-Contained Restricted Use - Correct Answer-The 3 written report options stated in Standards Rule 2-2 The level of detail and information - Correct Answer-The essential differences among the 3 reporting options. Client's specific name - Correct Answer-Not required by USPAP to be in a Summary Appraisal Report Effective Date and Report Date - Correct Answer-Must be included when reporting the results of an appraisal. The date of the report - Correct Answer-Establishes the appraiser's perspective on the market. The exclusion of any of the valuation approaches - Correct Answer-Must be explained in a Restricted Use Appraisal Report Scope of work used to develop the appraisal must be summarized - Correct Answer-In a Summary Appraisal Report Must be stated and state that its use may have affected the assignment results. - Correct Answer-An extraordinary assumption used in an appraisal, False - Correct Answer-A workfile is not required in support of a Restricted Use Appraisal Report Equally credible - Correct Answer-A value opinion expressed in a Summary Appraisal Report and a value opinion expressed in a Restricted Use Appraisal Report are False - Correct Answer-There can be intended users other than the client for a Restricted Use Appraisal Report. Sign the certification - Correct Answer-According to USPAP, any appraiser who signs any part of an appraisal report is required to False - Correct Answer-The disclosure of a significant real property appraisal assistance provided in an appraiser's report is not required under USPAP. For the appraiser to acknowledge his/her ethical obligations. - Correct Answer-The purpose of including a signed certification in an appraisal report. True - Correct Answer-A written summary of an oral appraisal report must be added to the appraiser's workfile within a reasonable time after the issuance of an oral report. The appraiser must add a signed and dated certification to her appraisal workfile. - Correct Answer-An appraiser provides an oral report of a real property appraisal assignment Summary Appraisal Report - Correct Answer-To the extent possible and appropriate, oral appraisal reports for real property must address the substantive matters that apply to this report. True - Correct Answer-A Recertification of Value does not change the effective date of the value opinion.