USPAP USPAP Definitions and Key Concepts 3

Question 1

USPAP defines 'assignment conditions' as including all of the following EXCEPT:

Accepted Answer

The appraiser's professional opinion of value

Answer

Assumptions

Answer

Hypothetical conditions

Answer

Extraordinary assumptions

Question 2

The term 'prospective opinion of value' in USPAP refers to:

Accepted Answer

A value opinion that is effective as of a specified future date

Answer

A value opinion as of the current date

Answer

An estimate of value using only the income approach

Answer

A preliminary value indication before fieldwork is complete

Question 3

Under USPAP, 'price' differs from 'value' in that price is:

Accepted Answer

The amount actually paid in a specific transaction, which may or may not reflect market value

Answer

Always equal to market value in an arm's-length transaction

Answer

A concept applicable only to personal property

Answer

Determined solely by the lender's appraisal

Question 4

USPAP's definition of 'cost' in the context of real property appraisal refers to:

Accepted Answer

The expenditure required to create or obtain an asset as of a specific date

Answer

The market value of land plus improvements

Answer

The reproduction cost minus depreciation only

Answer

The amount paid by the current owner to acquire the property

Question 5

Under USPAP, the term 'assignment results' includes:

Accepted Answer

The appraiser's opinions and conclusions developed in the assignment, which may include value, highest and best use, and other conclusions

Answer

Only the final value opinion

Answer

The client's acceptance of the appraiser's findings

Answer

The raw data and comparables gathered during research

Question 6

Which USPAP term refers to the legal right to control the use of property to the exclusion of others?

Accepted Answer

Fee simple estate

Answer

Leasehold interest

Answer

Encumbrance

Answer

Easement appurtenant