USPAP USPAP General 3

Question 1

The USPAP Standards Rule 2-2 requires that an Appraisal Report contain, at minimum, which of the following?

Accepted Answer

Sufficient information to enable the client to understand the report and not be misled

Answer

An Appraisal Report must contain sufficient information to enable the intended users to understand it and not be misled, regardless of length.

Question 2

Under USPAP, the term 'extraordinary assumption' is defined as an assumption that:

Accepted Answer

Is directly related to a specific assignment and presumes uncertain information as fact

Answer

An extraordinary assumption presumes uncertain information as fact; if found false, it could alter the appraiser's opinions or conclusions.

Question 3

A 'hypothetical condition' under USPAP is a condition that is:

Accepted Answer

Contrary to what exists but used for purposes of analysis

Answer

A hypothetical condition is contrary to known facts and is used in an assignment for analytic purposes, such as appraising a property as if built.

Question 4

USPAP's Record Keeping Rule requires an appraiser to retain work file records for at minimum:

Accepted Answer

Five years from the date of the report or two years after final disposition of any legal proceeding, whichever is longer

Answer

The Record Keeping Rule requires retention for at least five years after preparation or two years after final legal disposition, whichever is longer.

Question 5

Which USPAP standard governs the development and reporting of a real property appraisal review?

Accepted Answer

Standard 3 and Standard 4

Answer

Standard 3 covers the development of a real property appraisal review, and Standard 4 covers reporting that review.

USPAP Exam Practice Test