USPAP USPAP Definitions and Key Concepts 2

Question 1

What is the USPAP definition of an 'appraisal'?

Accepted Answer

The act or process of developing an opinion of value

Answer

A written report of property characteristics only

Answer

A government-issued assessment of property tax value

Answer

A lender's determination of loan-to-value ratio

Question 2

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

Accepted Answer

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

Answer

Extraordinary assumptions apply only to commercial properties

Answer

Hypothetical conditions are always disclosed; extraordinary assumptions are optional disclosures

Answer

There is no practical distinction between the two terms

Question 3

USPAP defines 'mass appraisal' as:

Accepted Answer

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

Answer

An appraisal of a portfolio of properties by a single appraiser

Answer

An appraisal method restricted to residential properties

Answer

The use of computer-generated automated valuation models for lending decisions

Question 4

Under USPAP, what is a 'work file'?

Accepted Answer

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

Answer

The final signed appraisal report delivered to the client

Answer

The appraiser's fee schedule for different property types

Answer

The client's instructions to the appraiser

Question 5

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

Accepted Answer

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

Answer

The client requests a different approach to value

Answer

The property type requires a specialized method

Answer

The appraiser lacks competency to follow standard procedures

Question 6

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

Accepted Answer

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

Answer

A second appraisal of the same property

Answer

A client's internal quality check on a report before paying the fee

Answer

A government regulatory audit of an appraiser's license