USPAP USPAP Competency Rule 2 — Questions and Answers
Question 1: Which of the following is NOT an acceptable method for acquiring competency under USPAP?
- Associating with a competent appraiser
- Engaging in study and research
- Completing the assignment and attending education afterward without prior disclosure (Correct answer)
- Consulting recognized authorities in the specific field
Correct 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.
Question 2: The USPAP Competency Rule is triggered when an appraiser:
- Always, regardless of experience
- Lacks the knowledge or experience for a specific assignment (Correct answer)
- Charges more than the market rate
- Works in more than one state
Correct 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.
Question 3: An appraiser with no experience in appraisal review is asked to complete a review appraisal. Which USPAP rule is most directly applicable?
- Scope of Work Rule
- Competency Rule (Correct answer)
- Ethics Rule — Conduct section
- Standards Rule 3
Correct 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.
Question 4: Competency under USPAP includes all of the following EXCEPT:
- Knowledge of the property type
- Experience in the geographic area
- Knowledge of analytical methods required
- The number of years the appraiser has been licensed (Correct answer)
Correct 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.
Question 5: When an appraiser discloses a lack of competency to a client prior to accepting an assignment, they must also describe:
- Why they believe they are the best choice anyway
- The steps they will take to acquire the necessary competency (Correct answer)
- The exact cost of acquiring competency
- Their personal opinion of the property value
Correct 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.
Question 6: Geographic competency under the USPAP Competency Rule means the appraiser must understand:
- Only the zip code of the subject property
- Local market conditions, economic factors, and neighborhood characteristics affecting the subject (Correct answer)
- Only the county tax records for the area
- The national housing index
Correct 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.
USPAP USPAP Competency Rule 2
Which of the following is NOT an acceptable method for acquiring competency under USPAP?