CGA CGA Appraisal Standards & Ethics 1

Question 1

Which document establishes the minimum standards of professional appraisal practice in the United States?

Accepted Answer

Uniform Standards of Professional Appraisal Practice (USPAP)

Answer

USPAP, promulgated by the Appraisal Foundation, establishes the minimum standards for professional appraisal practice in the U.S.

Question 2

Under USPAP, what is the primary purpose of the Competency Rule?

Accepted Answer

To ensure appraisers possess the knowledge and experience required to complete an assignment competently

Answer

The Competency Rule requires appraisers to have the knowledge, experience, and skills necessary to complete each specific assignment before accepting it.

Question 3

Which USPAP rule prohibits an appraiser from accepting an assignment when the fee is contingent upon a predetermined value conclusion?

Accepted Answer

Ethics Rule

Answer

The Ethics Rule prohibits contingent fee arrangements where the appraiser's compensation is tied to a specific value outcome.

Question 4

Under USPAP, how long must an appraiser retain work files for a federally related transaction?

Accepted Answer

At least 5 years after the date of the report or 2 years after final disposition of any judicial proceeding

Answer

USPAP requires work files to be retained for at least five years after report preparation or two years after final judicial disposition, whichever is longer.

Question 5

What is a 'Restricted Appraisal Report' under USPAP?

Accepted Answer

A report with limited content intended for use only by the client

Answer

A Restricted Appraisal Report contains minimal content and is intended solely for the client's use, as it does not contain sufficient information for third-party reliance.

(CGA) Certified General Appraiser Practice Test

(CGA) Certified General Appraiser Practice Test

CGA CGA Appraisal Standards & Ethics 1