USPAP Flashcards

Under USPAP, which document sets forth the requirements an appraiser must follow when developing an appraisal?

Answer: Scope of Work Rule

The Scope of Work Rule requires an appraiser to identify the problem to be solved and determine the scope of work necessary to develop credible results.

USPAP's Competency Rule requires that prior to accepting an assignment, an appraiser lacking required competency must:

Answer: Disclose the lack of competency to the client and take steps to become competent

The Competency Rule requires disclosure to the client and that the appraiser take steps to become competent before completing the assignment.

Which USPAP Standard applies to the development of a real property appraisal?

Answer: Standard 1

Standard 1 addresses the development of a real property appraisal, while Standard 2 covers reporting.

What does the term 'intended use' mean in the context of USPAP?

Answer: The use of the appraisal or appraisal review by the intended user

Intended use refers to how the client or other intended users will use the appraisal report or review.

A USPAP-compliant appraisal report that contains sufficient information to allow intended users to understand the report is called a(n):

Answer: Appraisal Report

Under current USPAP, the two reporting options are Appraisal Report and Restricted Appraisal Report; the Appraisal Report must contain enough detail for intended users to understand.

Under the USPAP Ethics Rule, an appraiser must not accept an assignment contingent on:

Answer: A reported value that favors the client

Accepting a fee contingent on a pre-determined value conclusion violates the Management section of the Ethics Rule.

Which USPAP rule requires an appraiser to preserve and protect the confidentiality of assignment results?

Answer: Ethics Rule

The Confidentiality section of the Ethics Rule prohibits an appraiser from disclosing confidential information or assignment results to anyone other than the client without authorization.