Legal & Ethical Standards in Appraisal Flashcards
7 cards from real FHA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Legal & Ethical Standards in Appraisal flashcards as text
Title XI of FIRREA requires that all federally related transactions above $400,000 must use an appraiser who is:
Answer: Licensed or Certified by a state appraisal regulatory agency
FIRREA Title XI mandates state-licensed or state-certified appraisers for federally related transactions, with credential level determined by transaction complexity.
An FHA appraisal report must remain valid for use by the lender for a maximum of how long?
Answer: 180 days
FHA appraisals are valid for 120 days, extendable to 240 days under certain conditions with an update from the original appraiser.
A lender instructs an appraiser to omit mention of a nearby industrial facility from an FHA report. The appraiser's obligation is to:
Answer: Include the facility as it may be a material factor affecting value and marketability
Appraisers must report all factors that materially affect value regardless of client instructions; omission would violate the Ethics Rule and USPAP's reporting standards.
USPAP defines 'intended use' as the use(s) of the appraiser's report as identified by:
Answer: The appraiser in communication with the client
Intended use is defined by the appraiser in communication with the client at the time of engagement.
Which of the following situations requires an appraiser to invoke the USPAP Jurisdictional Exception Rule?
Answer: A federal law conflicts with a specific USPAP requirement
The Jurisdictional Exception Rule applies only when a law or regulation directly conflicts with a specific USPAP requirement.
An appraiser signs an FHA certification stating they have 'no present or prospective interest in the property.' This certification would be violated if the appraiser:
Answer: Holds an option to purchase the subject property
Holding an option or any ownership interest in the subject property creates a direct conflict that violates the FHA independence certification.
Under the Uniform Standards of Professional Appraisal Practice, the workfile for a completed appraisal must be retained for a minimum of:
Answer: 5 years from the date of the report or 2 years after final disposition of any judicial proceeding, whichever is longer
USPAP requires workfile retention for five years from the report date or two years after final disposition of any related judicial proceeding, whichever is longer.