RAA Uniform Standards of Professional Appraisal Practice 4 — Questions and Answers
Question 1: Under USPAP, which of the following parties may be identified as an 'intended user' of an appraisal?
- Only the client
- The client and any other party the appraiser identifies in the assignment (Correct answer)
- Any member of the public who obtains the report
- Only licensed appraisers reviewing the report
Correct answer: The client and any other party the appraiser identifies in the assignment
Intended users include the client and any other parties identified by the appraiser as those for whom the appraisal is prepared.
Question 2: What is the significance of the 'effective date' of an appraisal under USPAP?
- It is the date the report is transmitted to the client
- It is the date to which the value opinion applies (Correct answer)
- It is the date the appraiser inspects the property
- It is the date the workfile is finalized
Correct answer: It is the date to which the value opinion applies
The effective date establishes the point in time as of which the value opinion is applicable, which may differ from the report date.
Question 3: USPAP requires that each written appraisal report contain a signed certification. Which statement is REQUIRED to be included in that certification?
- A statement that the appraiser will update the report annually
- A statement that the appraiser has no present or prospective interest in the property (Correct answer)
- A statement that the value conclusion is the highest possible
- A statement that no comparable sales were considered
Correct answer: A statement that the appraiser has no present or prospective interest in the property
USPAP mandates certification language stating the appraiser has no current or prospective interest in the property or parties that could produce bias.
Question 4: Under USPAP's Ethics Rule, which of the following would constitute a violation of the Conduct section?
- Accepting an assignment for a property type the appraiser has appraised before
- Communicating a misleading or fraudulent appraisal (Correct answer)
- Using a restricted appraisal report format for a qualified client
- Retaining workfiles for five years instead of three
Correct answer: Communicating a misleading or fraudulent appraisal
The Conduct section prohibits appraisers from communicating appraisal results in a misleading or fraudulent manner.
Question 5: When must an appraiser invoke the USPAP Jurisdictional Exception Rule in a report?
- Whenever the client requests a departure from USPAP
- When a law or regulation prevents compliance with a specific part of USPAP (Correct answer)
- When market conditions are unusual or unprecedented
- When an AMC instructs the appraiser to use a specific approach
Correct answer: When a law or regulation prevents compliance with a specific part of USPAP
The Jurisdictional Exception Rule applies only when an applicable law or regulation precludes compliance with a specific USPAP requirement.
Question 6: Which of the following is NOT a required element of an Appraisal Report under USPAP Standard 2?
- Identity of the client and intended users
- A complete copy of all comparable sales contracts (Correct answer)
- The real property interest being appraised
- Signed certification by the appraiser
Correct answer: A complete copy of all comparable sales contracts
USPAP does not require inclusion of all comparable sales contracts; it requires sufficient information to understand the data and analysis used.
Question 7: Under USPAP, an 'appraisal review' is defined as:
- The appraiser's internal quality check before signing a report
- The act or process of developing and communicating an opinion about the quality of another appraiser's work (Correct answer)
- A second inspection of the subject property
- A supervisory appraiser's review of a trainee's field notes
Correct answer: The act or process of developing and communicating an opinion about the quality of another appraiser's work
An appraisal review is the process of developing and communicating an opinion about the quality of another appraiser's work, governed by Standards 3 and 4.
RAA Uniform Standards of Professional Appraisal Practice 4
Under USPAP, which of the following parties may be identified as an 'intended user' of an appraisal?