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

USPAP prohibits assignment conditions that require a predetermined value conclusion, as they compromise appraiser independence.

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

USPAP's Competency Rule requires appraisers to acquire necessary knowledge and experience before completing an assignment if they lack competency.

Question 3

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

Accepted Answer

Record Keeping Rule

Answer

The USPAP Record Keeping Rule requires appraisers to prepare and maintain a workfile for each appraisal assignment.

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

Expanding the geographic or time scope and documenting the expanded search demonstrates due diligence and transparency in the scope of work.

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

Acting as a listing agent for a property you appraised creates a conflict of interest that must be disclosed or avoided per the Ethics Rule.

(ARA) Accredited Rural Appraiser Practice Test

(ARA) Accredited Rural Appraiser Practice Test

ARA Professional Standards & Competencies 2