RAA Uniform Standards of Professional Appraisal Practice 2 — Questions and Answers
Question 1: Under USPAP, which standard governs the development of a real property appraisal?
- Standard 1 (Correct answer)
- Standard 2
- Standard 3
- Standard 6
Correct answer: Standard 1
Standard 1 addresses the development of a real property appraisal, while Standard 2 addresses reporting.
Question 2: What does the USPAP Competency Rule require an appraiser to do when lacking the required competency for an assignment?
- Decline the assignment immediately
- Disclose the lack of knowledge and take steps to acquire competency before proceeding (Correct answer)
- Complete the assignment and note deficiencies in the report
- Refer the assignment to a more experienced colleague without disclosure
Correct answer: Disclose the lack of knowledge and take steps to acquire competency before proceeding
The Competency Rule requires appraisers to disclose any lack of knowledge or experience and take the steps necessary to complete the assignment competently.
Question 3: Which USPAP rule prohibits an appraiser from accepting an assignment with a predetermined outcome?
- Ethics Rule — Management section (Correct answer)
- Scope of Work Rule
- Competency Rule
- Record Keeping Rule
Correct answer: Ethics Rule — Management section
The Management section of the Ethics Rule prohibits accepting an assignment contingent on reporting a predetermined result.
Question 4: How long must an appraiser retain the workfile for a real property appraisal under the USPAP Record Keeping Rule?
- At least 1 year after preparation
- At least 3 years after preparation or 1 year after final disposition of legal proceedings, whichever is later (Correct answer)
- At least 5 years after preparation
- At least 7 years after preparation
Correct answer: At least 3 years after preparation or 1 year after final disposition of legal proceedings, whichever is later
The Record Keeping Rule requires retention for at least 3 years after preparation or at least 1 year after final disposition of legal proceedings, whichever is later.
Question 5: Under USPAP Standard 2, which report format provides the most abbreviated presentation of an appraisal?
- Appraisal Report
- Restricted Appraisal Report (Correct answer)
- Summary Report
- Self-Contained Report
Correct answer: Restricted Appraisal Report
The Restricted Appraisal Report is the most abbreviated format and is intended for client use only with limited intended users.
Question 6: When an appraiser uses the work of others (such as a specialist's report), what must the appraiser do under USPAP?
- Accept the work without review if the specialist is licensed
- Have the specialist co-sign the appraisal report
- Describe the extent of that reliance and ensure it does not give a false impression (Correct answer)
- Independently verify all data provided by the specialist
Correct answer: Describe the extent of that reliance and ensure it does not give a false impression
USPAP requires the appraiser to describe the extent of reliance on others' work and ensure the report does not mislead intended users.
Question 7: Which of the following is considered a jurisdictional exception under USPAP?
- An appraiser choosing to omit the cost approach
- A law or regulation that precludes compliance with a specific USPAP requirement (Correct answer)
- An AMC requiring a specific value conclusion
- A client requesting a value range instead of a point estimate
Correct answer: A law or regulation that precludes compliance with a specific USPAP requirement
A jurisdictional exception applies when a law or regulation in the appraiser's jurisdiction precludes compliance with a specific part of USPAP.
RAA Uniform Standards of Professional Appraisal Practice 2
Under USPAP, which standard governs the development of a real property appraisal?