USPAP USPAP Competency Rule 1

Question 1

The USPAP Competency Rule requires an appraiser to have competency in which of the following before accepting an assignment?

Accepted Answer

Geographic area, property type, and relevant market conditions

Answer

The Competency Rule requires appraisers to have knowledge and experience with the specific property type, geographic area, and market conditions relevant to the assignment.

Question 2

Under the USPAP Competency Rule, if an appraiser lacks the necessary competency for an assignment, they must:

Accepted Answer

Disclose the lack of competency to the client before accepting, and take steps to acquire it

Answer

The Competency Rule requires prior disclosure to the client of any lack of competency and describes steps the appraiser will take to become competent.

Question 3

Which of the following would satisfy the USPAP Competency Rule when an appraiser lacks experience with a specialized property type?

Accepted Answer

Associating with a competent appraiser on the assignment

Answer

One acceptable method to gain competency is to associate with another appraiser who has the requisite expertise for the specific assignment.

Question 4

The Competency Rule applies to which aspects of an appraisal assignment?

Accepted Answer

All aspects, including property type, market area, and required analytical methods

Answer

The Competency Rule applies to every aspect of the assignment — the property type, the geographic area, and any analytical techniques or methods required.

Question 5

An appraiser with extensive residential experience is asked to appraise a large industrial warehouse. Under USPAP, the appraiser should:

Accepted Answer

Disclose the competency issue to the client and take steps to acquire the needed expertise

Answer

When lacking competency for a specific assignment, USPAP requires prior disclosure to the client and a plan to acquire the necessary expertise.

USPAP Exam Practice Test

USPAP Exam Practice Test

USPAP USPAP Competency Rule 1