USPAP USPAP Standards Rules — Reporting 1 — Questions and Answers
Question 1: Under USPAP Standards Rule 2-2, which of the following is a recognized form of a real property appraisal report?
- Summary report and narrative report
- Appraisal Report and Restricted Appraisal Report (Correct answer)
- Limited report and complete report
- Self-contained report and restricted report
Correct answer: Appraisal Report and Restricted Appraisal Report
USPAP Standards Rule 2-2 recognizes two report options: the Appraisal Report and the Restricted Appraisal Report.
Question 2: A Restricted Appraisal Report under USPAP is intended for use by:
- Any lender or public agency
- The client only (Correct answer)
- All identified intended users
- Any court of law
Correct answer: The client only
A Restricted Appraisal Report restricts the use of the report to the client only and cannot be used or relied upon by other parties.
Question 3: Under Standards Rule 2-1, an appraisal report must clearly and accurately set forth the appraisal in a manner that is:
- Consistent with all prior appraisals
- Not misleading and sufficient for the intended use (Correct answer)
- Approved by the state licensing board
- In the standard form required by the lender
Correct answer: Not misleading and sufficient for the intended use
Standards Rule 2-1 requires reports to be presented in a manner that is not misleading and contains sufficient information for the intended use.
Question 4: Under USPAP, which statement about an Appraisal Report is correct?
- It must always include three approaches to value
- It must contain sufficient information to enable intended users to understand the appraisal (Correct answer)
- It can only be used for residential properties
- It is less detailed than a Restricted Appraisal Report
Correct answer: It must contain sufficient information to enable intended users to understand the appraisal
An Appraisal Report must contain enough detail to allow intended users to understand the appraiser's analysis, conclusions, and the reasoning behind them.
Question 5: Which of the following must be stated in every USPAP-compliant appraisal report?
- The appraiser's fee for the assignment
- The identity of the client and intended users (Correct answer)
- The property's tax assessed value
- The seller's motivation for the sale
Correct answer: The identity of the client and intended users
USPAP Standards Rule 2-2 requires identification of the client and intended users in every appraisal report.
Question 6: Under USPAP, which element is required to be included in the certification of an appraisal report?
- The appraiser's tax identification number
- A statement that the appraiser's compensation is not contingent on the reported value (Correct answer)
- The property owner's signature
- The lender's approval of the scope of work
Correct answer: A statement that the appraiser's compensation is not contingent on the reported value
USPAP requires the certification to include a statement that the appraiser's compensation is not contingent on the value conclusion or direction of value.
USPAP USPAP Standards Rules — Reporting 1
Under USPAP Standards Rule 2-2, which of the following is a recognized form of a real property appraisal report?