RAA Uniform Standards of Professional Appraisal Practice 5 — Questions and Answers
Question 1: A supervisory appraiser signs an appraisal report co-signed by a trainee. Under USPAP, what is the supervisory appraiser's responsibility?
- Only responsible for the portions they personally completed
- Responsible for the appraisal, the report, and the trainee's work they supervised (Correct answer)
- Responsible only for the certification statements
- Not responsible if the trainee is licensed
Correct answer: Responsible for the appraisal, the report, and the trainee's work they supervised
A supervisory appraiser accepts full responsibility for the appraisal, the report, and the work of the trainee appraiser they supervise.
Question 2: Under USPAP, which of the following BEST describes 'assignment conditions'?
- The physical conditions of the subject property
- Assumptions, extraordinary assumptions, hypothetical conditions, laws, and regulations that affect the scope of work (Correct answer)
- Weather conditions on the date of inspection
- Market conditions affecting value on the effective date
Correct answer: Assumptions, extraordinary assumptions, hypothetical conditions, laws, and regulations that affect the scope of work
Assignment conditions include assumptions, extraordinary assumptions, hypothetical conditions, and applicable laws and regulations that shape the scope of work.
Question 3: Which USPAP standard governs the development of an opinion in an appraisal review of a real property appraisal?
- Standard 2
- Standard 3 (Correct answer)
- Standard 5
- Standard 7
Correct answer: Standard 3
Standard 3 governs the development of an appraisal review for real property, while Standard 4 governs its reporting.
Question 4: Under USPAP, what is required when an appraiser relies on a prior appraisal report as a basis for a new assignment?
- The prior report must be fully reproduced in the new report
- The appraiser must update all data from the prior report independently
- The appraiser must determine whether the prior report information remains credible and relevant (Correct answer)
- Prior reports may never be referenced under USPAP
Correct answer: The appraiser must determine whether the prior report information remains credible and relevant
When relying on a prior report, the appraiser must determine whether the data and analyses remain applicable and credible for the current assignment.
Question 5: An appraiser is asked to provide an 'appraisal consulting' service under USPAP. Which standard applies?
- Standard 1 and Standard 2
- Standard 4 and Standard 5
- Standard 5 and Standard 6 (prior editions)
- Standards 3 through 5 were consolidated; consulting falls under Standard 1 (Correct answer)
Correct answer: Standards 3 through 5 were consolidated; consulting falls under Standard 1
USPAP eliminated the separate consulting standards; real property consulting assignments are now addressed under the existing appraisal standards framework.
Question 6: Which of the following USPAP concepts requires the appraiser to identify the type and extent of research and analyses necessary to produce credible assignment results?
- Extraordinary assumption
- Scope of Work (Correct answer)
- Jurisdictional Exception
- Hypothetical condition
Correct answer: Scope of Work
The Scope of Work concept defines the type and extent of research and analyses required for the appraiser to produce credible results.
Question 7: Under USPAP, when is it permissible to include a contingent fee arrangement in an appraisal assignment?
- Never; contingent fees are always prohibited (Correct answer)
- Only when the client is a government entity
- Only when the contingency is based on the appraiser's quality of work, not the value conclusion
- When disclosed in the certification
Correct answer: Never; contingent fees are always prohibited
USPAP prohibits appraisers from accepting any compensation contingent on the reporting of a predetermined value or direction of value, with no exceptions.
RAA Uniform Standards of Professional Appraisal Practice 5
A supervisory appraiser signs an appraisal report co-signed by a trainee.
Under USPAP, what is the supervisory appraiser's responsibility?