USPAP USPAP 3

Question 1

In USPAP, the term 'extraordinary assumption' is best defined as:

Accepted Answer

An assumption that, if found to be false, could alter the appraiser's opinions and conclusions

Answer

An extraordinary assumption presumes as fact something that is uncertain as of the effective date and, if false, could change the value conclusion.

Question 2

A 'hypothetical condition' differs from an 'extraordinary assumption' in that a hypothetical condition:

Accepted Answer

Is contrary to what exists on the effective date of the appraisal

Answer

A hypothetical condition assumes something that is contrary to fact as of the effective date, such as treating a property as if completed when it is not.

Question 3

Under USPAP Standard 2, which of the following must always be disclosed in an Appraisal Report?

Accepted Answer

Any extraordinary assumptions and hypothetical conditions used

Answer

Standard 2 requires that extraordinary assumptions and hypothetical conditions be clearly stated and their effect on the assignment results be noted.

Question 4

How long must an appraiser retain workfile records under the USPAP Record Keeping Rule?

Accepted Answer

At least 5 years after preparation or 2 years after final disposition, whichever is later

Answer

The Record Keeping Rule requires retention of workfiles for at least five years after preparation or at least two years after final disposition of any judicial proceeding, whichever is later.

Question 5

Under USPAP, who is responsible for the content of an appraisal report when a supervisory appraiser and trainee are involved?

Accepted Answer

Both the supervisory appraiser and the trainee, each responsible for their own contributions

Answer

USPAP holds each signatory responsible for the content of the report and their own contributions to the assignment.

USPAP Exam Practice Test

USPAP Exam Practice Test

USPAP USPAP 3