ARA Professional Standards & Competencies 2

Question 1

Under USPAP, when an appraiser accepts an assignment with a condition that the value conclusion must meet a predetermined amount, this is known as:

Accepted Answer

A prohibited assignment condition

Answer

A contingent assignment

Answer

An advocacy assignment

Answer

A restricted appraisal report

Question 2

An ARA appraiser is asked to appraise a large irrigated farm in a region where they have no prior experience. What does USPAP require before accepting the assignment?

Accepted Answer

Acquire the necessary competency before completing the assignment

Answer

Decline the assignment entirely

Answer

Complete the assignment and disclose the lack of experience in the report

Answer

Partner with a local sales agent

Question 3

Which USPAP rule specifically addresses an appraiser's obligation to maintain records of each appraisal assignment?

Accepted Answer

Record Keeping Rule

Answer

Ethics Rule

Answer

Competency Rule

Answer

Scope of Work Rule

Question 4

A rural appraiser discovers mid-assignment that comparable sales data is extremely sparse in the subject's market area. What is the most appropriate professional response?

Accepted Answer

Expand the search area and document the process in the scope of work

Answer

Abandon the assignment without notice

Answer

Use only the available sales and ignore the data gap

Answer

Apply national average adjustment rates

Question 5

Under the USPAP Ethics Rule, an appraiser who performs an appraisal and then later lists the same property for sale faces a potential violation related to:

Accepted Answer

Conflicts of interest and management pressure

Answer

Geographic competency

Answer

Confidentiality

Answer

Record keeping

Question 6

The USPAP definition of 'scope of work' includes all of the following EXCEPT:

Accepted Answer

The appraiser's compensation structure

Answer

The type and extent of research performed

Answer

The type and extent of analyses applied

Answer

The type of appraisal report prepared

Question 7

An ARA candidate is supervised by a certified appraiser on a complex ranch appraisal. Who is ultimately responsible for the credibility of the appraisal report?

Accepted Answer

Both the supervising appraiser and the candidate share responsibility

Answer

The supervising appraiser only

Answer

The ARA candidate only

Answer

The client who ordered the appraisal