IACP Reporting Standards & Documentation Practices 2

Question 1

Under USPAP, which report option provides the least detail while still being compliant for a credible appraisal?

Accepted Answer

Restricted Appraisal Report

Answer

The Restricted Appraisal Report contains the least detail and is intended for use only by the client.

Question 2

An appraiser's workfile must be retained for a minimum of how many years after the date of the appraisal report under USPAP?

Accepted Answer

5 years

Answer

USPAP requires appraisers to retain workfiles for at least five years after preparation or two years after final disposition of a legal proceeding, whichever is longer.

Question 3

Which element is REQUIRED to be disclosed in an appraisal report when the subject property was sold within three years prior to the effective date?

Accepted Answer

Prior sale price and date

Answer

USPAP requires disclosure of prior sales of the subject property within three years of the effective date, including sale price and date.

Question 4

What is the primary purpose of the limiting conditions section in an appraisal report?

Accepted Answer

To identify assumptions that bound the analysis

Answer

Limiting conditions identify specific assumptions and restrictions that define the boundaries within which the appraisal conclusion is valid.

Question 5

When preparing a form report (e.g., FNMA 1004), an appraiser adds extra pages to address complex issues. These additions are known as:

Accepted Answer

Addenda

Answer

Additional pages appended to a form report to provide expanded analysis or disclosures are called addenda.

(IACP) Independent Appraisers Certification Program Practice Test

(IACP) Independent Appraisers Certification Program Practice Test

IACP Reporting Standards & Documentation Practices 2