RPA Report Writing & Ethical Standards 2 — Questions and Answers
Question 1: Under USPAP's Ethics Rule, which action constitutes a violation of the Conduct section?
- Accepting an assignment with a contingent fee based on a stipulated value (Correct answer)
- Using a restricted appraisal report for a federally related transaction
- Disclosing prior services on a subject property in the certification
- Signing a report as a supervisory appraiser for a trainee
Correct answer: Accepting an assignment with a contingent fee based on a stipulated value
Accepting compensation contingent on a stipulated value outcome is an explicit violation of USPAP's Conduct section of the Ethics Rule.
Question 2: A Restricted Appraisal Report is appropriate when:
- The intended use is client-use only and the client does not need supporting details in the report (Correct answer)
- The property is complex and requires extensive narrative description
- The assignment involves a federally related transaction
- Multiple intended users need access to the appraisal
Correct answer: The intended use is client-use only and the client does not need supporting details in the report
A Restricted Appraisal Report is used when the client is the sole intended user and does not require detailed supporting information within the report itself.
Question 3: Which USPAP Standard addresses the development and reporting of real property appraisals?
- Standards 1 and 2 (Correct answer)
- Standards 3 and 4
- Standards 5 and 6
- Standards 7 and 8
Correct answer: Standards 1 and 2
USPAP Standards 1 and 2 govern the development and reporting of real property appraisals, respectively.
Question 4: When an appraiser discovers a prior appraisal assignment on the subject property, USPAP requires the appraiser to:
- Disclose the prior service in the certification (Correct answer)
- Refuse the new assignment to avoid bias
- Notify the state regulatory board before proceeding
- Obtain written permission from the prior client
Correct answer: Disclose the prior service in the certification
USPAP's Ethics Rule requires disclosure of prior services on a subject property within the certification of the current report.
Question 5: The term 'scope of work' in an appraisal report refers to:
- The type and extent of research and analysis applied in the assignment (Correct answer)
- The geographic area covered by the appraiser's market analysis
- The fee agreed upon between the appraiser and client
- The number of comparable sales used in the sales comparison approach
Correct answer: The type and extent of research and analysis applied in the assignment
Scope of work describes the type and extent of research, data collection, and analysis the appraiser performs to produce credible results.
Question 6: An Appraisal Review under USPAP Standard 3 requires the reviewer to:
- Form an opinion about the quality of another appraiser's work (Correct answer)
- Always provide a value conclusion for the subject property
- Complete a new property inspection before issuing a review
- Use identical comparable sales as the original appraiser
Correct answer: Form an opinion about the quality of another appraiser's work
Standard 3 governs appraisal review, which involves forming an opinion about the quality, adequacy, and relevance of another appraiser's work.
Question 7: Which element is REQUIRED in every written real property appraisal report per USPAP Standard 2?
- A signed certification by the appraiser (Correct answer)
- At least three comparable sales
- A physical description of each comparable property
- A reconciliation of all three approaches to value
Correct answer: A signed certification by the appraiser
USPAP Standard 2 mandates a signed certification in every written real property appraisal report.
RPA Report Writing & Ethical Standards 2
Under USPAP's Ethics Rule, which action constitutes a violation of the Conduct section?