ASA Legal & Regulatory Framework 1

Question 1

USPAP is promulgated by which organization?

Accepted Answer

The Appraisal Foundation

Answer

The Appraisal Foundation, through its Appraisal Standards Board (ASB), develops and issues USPAP.

Question 2

FIRREA, enacted in 1989, requires federally related real estate transactions above threshold amounts to use appraisers who are:

Accepted Answer

State-licensed or state-certified

Answer

FIRREA mandated state licensing and certification programs for real estate appraisers performing federally related transactions.

Question 3

In eminent domain proceedings in the US, the constitutional standard for compensation to the property owner is:

Accepted Answer

Just compensation, typically interpreted as fair market value

Answer

The Fifth Amendment requires 'just compensation,' which courts have consistently defined as the fair market value of the property taken.

Question 4

Under IRS regulations, a 'qualified appraisal' for tax purposes must be performed no earlier than how many days before the contribution date?

Accepted Answer

60 days

Answer

A qualified appraisal for charitable contribution purposes must be conducted no earlier than 60 days before the donation and no later than the tax return due date.

Question 5

The Uniform Standards of Professional Appraisal Practice (USPAP) Ethics Rule prohibits an appraiser from accepting an assignment where compensation is:

Accepted Answer

Contingent on reporting a predetermined value

Answer

Contingent fee arrangements tied to the value conclusion are prohibited because they create a conflict of interest that compromises appraiser independence.

ASA - American Society of Appraisers Certification Practice Test

ASA - American Society of Appraisers Certification Practice Test

ASA Legal & Regulatory Framework 1