CGA Regulatory & Fair Housing Compliance 3

Question 1

The Competency Rule in USPAP requires an appraiser to do which of the following before accepting an assignment they lack competency for?

Accepted Answer

Disclose the lack of competency to the client and take steps to acquire competency

Answer

The Competency Rule requires disclosure of any lack of knowledge or experience and requires steps to acquire competency prior to completing the assignment.

Question 2

Under the Americans with Disabilities Act (ADA), how should an appraiser treat ADA compliance costs for a commercial property that is non-compliant?

Accepted Answer

Reflect ADA compliance costs as a negative adjustment to market value

Answer

ADA non-compliance represents a form of functional obsolescence, and the cost to cure or market penalty should be reflected in the value estimate.

Question 3

The concept of 'redlining' as prohibited by fair housing law refers to:

Accepted Answer

Denying services to residents of certain areas based on racial or ethnic composition

Answer

Redlining is the illegal practice of denying mortgage loans or insurance to residents of neighborhoods based on racial or ethnic composition.

Question 4

USPAP Standard 1 governs which type of appraisal practice?

Accepted Answer

Real property appraisal development

Answer

USPAP Standard 1 establishes requirements for the development of real property appraisals.

Question 5

When an appraiser accepts an assignment to appraise a property in which they have a personal financial interest, USPAP requires them to:

Accepted Answer

Disclose the interest to the client and obtain client consent

Answer

USPAP's Ethics Rule permits appraisal of properties in which the appraiser has an interest, but only with full disclosure to and consent of the client.

(CGA) Certified General Appraiser Practice Test

(CGA) Certified General Appraiser Practice Test

CGA Regulatory & Fair Housing Compliance 3