USPAP USPAP General 4

Question 1

USPAP Standards Rule 1-5 requires an appraiser to analyze agreements of sale, listings, and prior sales of the subject property. How far back must the appraiser analyze prior sales?

Accepted Answer

Three years for improved properties and five years for vacant land

Answer

USPAP SR 1-5 requires analysis of prior sales within three years for improved properties and five years for vacant land.

Question 2

Under USPAP, which of the following actions by an appraiser violates the Independence section of the Ethics Rule?

Accepted Answer

Allowing a client's preferred value to influence the appraiser's analysis and conclusion

Answer

Allowing client pressure or a preferred value to influence the appraiser's conclusion violates the independence requirement of the Ethics Rule.

Question 3

Which of the following best describes 'jurisdictional exception' under USPAP?

Accepted Answer

A provision that permits departure from USPAP requirements when law or regulation in a jurisdiction prohibits compliance

Answer

Jurisdictional exception applies when law or regulation of a jurisdiction precludes compliance with a part of USPAP, and the appraiser must identify and explain the exception.

Question 4

USPAP's definition of 'market value' requires that the transaction be between parties who are:

Accepted Answer

Both acting prudently and knowledgeably, with neither under undue pressure to transact

Answer

Market value assumes both buyer and seller are prudent, knowledgeable, and neither is under compulsion to complete the transaction.

Question 5

Under USPAP, a 'client' is defined as:

Accepted Answer

The party or parties who engage an appraiser (by employment or contract) in a specific assignment

Answer

The client is the party who engages the appraiser; being a client does not require being the property owner or an intended user.

USPAP Exam Practice Test

USPAP Exam Practice Test

USPAP USPAP General 4