USPAP USPAP General 2 — Questions and Answers
Question 1: Under USPAP, which of the following best describes the term 'scope of work'?
- The fee charged for an appraisal assignment
- The type and extent of research and analyses in an appraisal assignment (Correct answer)
- The geographic area covered by the appraisal
- The time period allotted to complete the assignment
Correct answer: The type and extent of research and analyses in an appraisal assignment
Scope of work is defined as the type and extent of research and analyses in an appraisal assignment, determined by the appraiser.
Question 2: The USPAP Confidentiality section prohibits an appraiser from disclosing confidential information to which party?
- The client who hired the appraiser
- Third parties not authorized by the client (Correct answer)
- State licensing boards investigating complaints
- Other appraisers in a peer review
Correct answer: Third parties not authorized by the client
USPAP prohibits disclosure of confidential information to unauthorized third parties, while exceptions exist for state boards and peer review.
Question 3: A Restricted Appraisal Report under USPAP differs from an Appraisal Report primarily in that it:
- Contains more supporting data and analysis
- Is intended for client use only and contains less detail (Correct answer)
- Must be reviewed by a supervisory appraiser
- Is only permitted for commercial properties
Correct answer: Is intended for client use only and contains less detail
A Restricted Appraisal Report is limited in use to the client only and contains less content than an Appraisal Report.
Question 4: Which USPAP rule requires an appraiser to disclose any prior services performed on a subject property within the prior three years?
- Competency Rule
- Ethics Rule – Management section
- Ethics Rule – Conduct section (Correct answer)
- Scope of Work Rule
Correct answer: Ethics Rule – Conduct section
The Conduct section of the Ethics Rule requires disclosure of prior services on the same property within the prior three-year period.
Question 5: Under USPAP, an 'intended user' is best defined as:
- Any person who reads the appraisal report
- The client and any other party identified by the appraiser as a user of the report (Correct answer)
- Only the lender in a mortgage transaction
- The state licensing board that reviews the report
Correct answer: The client and any other party identified by the appraiser as a user of the report
An intended user is the client and any other party the appraiser identifies as using the appraisal.
Question 6: USPAP Standards Rule 1-2 requires an appraiser developing a real property appraisal to identify the effective date of the appraisal. The effective date is:
- The date the report is signed by the appraiser
- The date the client requests the appraisal
- The date to which the value opinion applies (Correct answer)
- The date the appraiser inspects the property
Correct answer: The date to which the value opinion applies
The effective date is the date to which the appraiser's value opinion applies, which may differ from inspection or report dates.
Question 7: Which of the following is a violation of the USPAP Ethics Rule – Management section?
- Accepting a flat fee for an appraisal assignment
- Accepting compensation that is contingent on the outcome of the appraisal (Correct answer)
- Performing an appraisal for a relative with full disclosure
- Charging different fees for residential versus commercial appraisals
Correct answer: Accepting compensation that is contingent on the outcome of the appraisal
Accepting contingent fees — compensation dependent on the appraised value or a favorable outcome — is explicitly prohibited by the Management section.
USPAP USPAP General 2
Under USPAP, which of the following best describes the term 'scope of work'?