ARA Regulatory Compliance & Legal Framework 3

Question 1

Under the Uniform Standards of Professional Appraisal Practice, which Standard governs the development of a real property appraisal?

Accepted Answer

Standard 1

Answer

USPAP Standard 1 governs the development of real property appraisals, while Standard 2 governs the reporting of those appraisals.

Question 2

A rural property owner claims an access easement across a neighboring parcel exists by prescription. How should the ARA appraiser treat this claim?

Accepted Answer

Note the claim, recommend a legal determination, and analyze the effect on value under reasonable assumptions

Answer

Appraisers identify legal issues affecting value, may rely on extraordinary assumptions where legal status is uncertain, and recommend that clients seek legal counsel to resolve title matters.

Question 3

Which federal law prohibits discrimination in residential mortgage lending based on race, color, national origin, religion, sex, familial status, or disability, directly affecting how appraisers must approach their work?

Accepted Answer

The Fair Housing Act

Answer

The Fair Housing Act prohibits discriminatory practices in housing transactions, and appraisers must not allow protected class characteristics of a neighborhood to influence value conclusions.

Question 4

When appraising agricultural land subject to a conservation easement, the appraiser should:

Accepted Answer

Identify the easement as a property right restriction and appraise the encumbered fee interest reflecting easement terms

Answer

A conservation easement restricts the property rights conveyed; USPAP requires the appraiser to identify the property rights being appraised and reflect all legal encumbrances in the value conclusion.

Question 5

State appraiser licensing laws, in order to conform with FIRREA requirements, must include which minimum element?

Accepted Answer

Adoption of USPAP as the minimum standard for appraisals in federally related transactions

Answer

FIRREA requires state appraiser regulatory programs to adopt USPAP as the minimum standard for appraisals in federally related transactions as a condition of ASC recognition.

(ARA) Accredited Rural Appraiser Practice Test

(ARA) Accredited Rural Appraiser Practice Test

ARA Regulatory Compliance & Legal Framework 3