USPAP USPAP Definitions and Key Concepts

Question 1

Under USPAP, 'market value' is best characterized as:

Accepted Answer

The most probable price a property would bring in an arm's-length transaction under specified conditions

Answer

The value set by local government tax assessors

Answer

The replacement cost of improvements only

Answer

The price a specific buyer and seller agree upon

Question 2

USPAP defines a 'client' as:

Accepted Answer

The party or parties who engage an appraiser in a specific assignment

Answer

Any party who receives a copy of the appraisal report

Answer

The property owner in all cases

Answer

The lending institution funding the transaction

Question 3

According to USPAP, 'credible' assignment results are those that are:

Accepted Answer

Worthy of belief and supported by the evidence and logic

Answer

Agreed upon by the client and appraiser

Answer

Consistent with prior appraisals of the same property

Answer

Reviewed and approved by a certified review appraiser

Question 4

What does USPAP mean by 'exposure time' in the definition of market value?

Accepted Answer

The estimated length of time the property would have been on the market prior to sale at market value

Answer

The time a property is listed before the appraisal date

Answer

The time period during which the appraisal is valid

Answer

The time it takes to complete the appraisal report

Question 5

Under USPAP, which of the following is an example of personal property?

Accepted Answer

Furniture in a furnished rental property

Answer

A building permanently attached to land

Answer

Underground utility lines

Answer

An easement appurtenant to land

Question 6

USPAP defines 'real property' as:

Accepted Answer

The interests, benefits, and rights inherent in the ownership of real estate

Answer

The physical land and all things permanently attached to it

Answer

The assessed value of land and improvements

Answer

Only the land, excluding improvements