USPAP Competency Rule Flashcards

Which of the following is NOT an acceptable method for acquiring competency under USPAP?

Answer: Completing the assignment and attending education afterward without prior disclosure

USPAP requires disclosure of the competency deficiency prior to accepting an assignment; completing the work first and then seeking education without prior disclosure is not acceptable.

The USPAP Competency Rule is triggered when an appraiser:

Answer: Lacks the knowledge or experience for a specific assignment

The Competency Rule is triggered only when the appraiser does not have the necessary knowledge or experience for the particular assignment at hand.

An appraiser with no experience in appraisal review is asked to complete a review appraisal. Which USPAP rule is most directly applicable?

Answer: Competency Rule

The Competency Rule applies when an appraiser lacks the knowledge or experience needed for a specific assignment type, such as appraisal review.

Competency under USPAP includes all of the following EXCEPT:

Answer: The number of years the appraiser has been licensed

Years of licensure alone do not establish competency; USPAP requires actual knowledge, experience, and judgment relevant to the specific assignment.

When an appraiser discloses a lack of competency to a client prior to accepting an assignment, they must also describe:

Answer: The steps they will take to acquire the necessary competency

USPAP requires the appraiser not only to disclose the deficiency but also to describe the steps they plan to take to become competent for the assignment.

Geographic competency under the USPAP Competency Rule means the appraiser must understand:

Answer: Local market conditions, economic factors, and neighborhood characteristics affecting the subject

Geographic competency requires understanding the local market, economic conditions, neighborhood trends, and factors that affect value in the subject's area.