USPAP USPAP Standards Rules — Reporting 2 — Questions and Answers
Question 1: Under USPAP Standards Rule 2-2(b), a Restricted Appraisal Report must contain a prominent use restriction stating:
- The report is for internal purposes only
- The report is restricted to use by the client only and is not intended for use by other parties (Correct answer)
- The report may be used by any licensed appraiser
- The report may be shared with government agencies
Correct answer: The report is restricted to use by the client only and is not intended for use by other parties
SR 2-2(b) requires a Restricted Appraisal Report to prominently state that it is restricted to client use only and may not be relied upon by other parties.
Question 2: Which of the following is required in the certification of a USPAP appraisal report?
- The appraiser's college degree information
- The effective date of the appraisal
- A statement that the appraiser personally inspected the property (or a disclosure if not inspected) (Correct answer)
- The client's credit score
Correct answer: A statement that the appraiser personally inspected the property (or a disclosure if not inspected)
USPAP certifications must include whether the appraiser personally inspected the subject property, or if not, a disclosure of any limiting conditions around the inspection.
Question 3: Under USPAP, which of the following is the purpose of the appraiser's certification in an appraisal report?
- To satisfy IRS reporting requirements
- To formally attest to the accuracy of statements and compliance with USPAP (Correct answer)
- To confirm the property's title is clear
- To certify the client's financial ability to purchase
Correct answer: To formally attest to the accuracy of statements and compliance with USPAP
The certification formally attests that the statements in the report are accurate and that the appraisal was performed in compliance with USPAP.
Question 4: When must a supervisory appraiser co-sign a report prepared by a trainee appraiser?
- Never — trainees must sign independently
- Always, when the trainee has not yet obtained an independent license (Correct answer)
- Only for commercial properties
- Only when the client requests it
Correct answer: Always, when the trainee has not yet obtained an independent license
When a trainee appraiser prepares a report, the supervisory appraiser must co-sign the certification to accept responsibility for the work.
Question 5: Under USPAP Standards Rule 2-2, which of the following must be disclosed in an appraisal report regarding prior services?
- Prior services on the subject property in the 36-month period preceding the effective date of the appraisal (Correct answer)
- All appraisals ever performed by the appraiser
- Prior services performed by any appraiser at the same firm
- Prior services on comparable properties
Correct answer: Prior services on the subject property in the 36-month period preceding the effective date of the appraisal
USPAP requires disclosure of any prior services performed on the subject property within the 36-month period preceding the appraisal's effective date.
Question 6: Under USPAP, which of the following must an appraiser include when identifying the effective date in an appraisal report?
- The date the appraiser received payment
- The date the value opinion applies (Correct answer)
- The date the report was transmitted to the client
- The date the property was last sold
Correct answer: The date the value opinion applies
The effective date is the specific date to which the value opinion applies, which may differ from both the inspection date and the report date.
USPAP USPAP Standards Rules — Reporting 2
Under USPAP Standards Rule 2-2(b), a Restricted Appraisal Report must contain a prominent use restriction stating: