USPAP Definitions and Key Concepts Flashcards

What is the USPAP definition of an 'appraisal'?

Answer: The act or process of developing an opinion of value

An appraisal is the act or process of developing an opinion of value, as defined in USPAP's Definitions section.

Under USPAP, 'extraordinary assumption' is distinct from 'hypothetical condition' because:

Answer: An extraordinary assumption could be true; a hypothetical condition is known to be contrary to fact

An extraordinary assumption is uncertain but could be true; a hypothetical condition is knowingly contrary to existing facts and is used for analytical purposes.

USPAP defines 'mass appraisal' as:

Answer: The process of valuing a universe of properties as of a given date using standard methods and statistical testing

Mass appraisal involves valuing a large group of properties simultaneously using uniform methods, typically for ad valorem taxation purposes.

Under USPAP, what is a 'work file'?

Answer: Documentation necessary to support the appraiser's analyses, opinions, and conclusions

A work file contains all documentation supporting the appraiser's development and reporting of the assignment, retained for record-keeping purposes.

In USPAP, 'jurisdictional exception' allows an appraiser to deviate from a USPAP requirement when:

Answer: A specific law or regulation in the jurisdiction conflicts with that USPAP requirement

The jurisdictional exception permits deviation from USPAP requirements only when a specific law or regulation in the applicable jurisdiction is in conflict.

Under USPAP, an 'appraisal review' is defined as:

Answer: The act or process of developing and communicating an opinion about the quality of another appraiser's work

An appraisal review is the act of developing an opinion about the quality, adequacy, and appropriateness of another appraiser's work product.