USPAP USPAP Residential Appraiser 2 — Questions and Answers
Question 1: Under USPAP, which type of appraisal report provides the least detail about the appraiser's analysis?
- Self-contained report
- Summary report
- Restricted use report (Correct answer)
- Narrative report
Correct answer: Restricted use report
A Restricted Use (Restricted Appraisal) Report contains the least detail and is intended only for the client's use.
Question 2: A residential appraiser is asked to appraise a property where they appraised the same property 18 months ago for a different client. Under USPAP, what must the appraiser do?
- Decline the assignment due to conflict of interest
- Disclose the prior service in the new report (Correct answer)
- Obtain written consent from the prior client before accepting
- Charge a higher fee to compensate for prior knowledge
Correct answer: Disclose the prior service in the new report
USPAP's Ethics Rule requires appraisers to disclose any prior services involving the subject property within the prior three years.
Question 3: Which USPAP standard specifically governs the development of a real property appraisal?
- Standard 1 (Correct answer)
- Standard 2
- Standard 3
- Standard 4
Correct answer: Standard 1
Standard 1 governs the development of real property appraisals, while Standard 2 governs reporting.
Question 4: An appraiser is pressured by a lender to increase the value conclusion to make the loan work. Under USPAP, this would violate the:
- Scope of Work Rule
- Competency Rule
- Ethics Rule — Management section (Correct answer)
- Record Keeping Rule
Correct answer: Ethics Rule — Management section
The Management section of the Ethics Rule prohibits appraisers from accepting assignments contingent on a predetermined value.
Question 5: When using the sales comparison approach for a residential appraisal, USPAP requires the appraiser to:
- Use a minimum of three comparable sales
- Analyze comparable sales with adjustments that are market-supported (Correct answer)
- Apply a grid with the same number of line items for each comparable
- Verify all sales through the county recorder's office only
Correct answer: Analyze comparable sales with adjustments that are market-supported
USPAP requires that adjustments in the sales comparison approach be supported by market evidence, not a specific number of comparables.
Question 6: The term 'extraordinary assumption' under USPAP refers to an assumption that:
- Is made about the condition of the property without inspection
- If found to be false, could alter the appraiser's opinions or conclusions (Correct answer)
- Is required by the client and overrides market conditions
- Relates to the extraordinary nature of a property's features
Correct answer: If found to be false, could alter the appraiser's opinions or conclusions
An extraordinary assumption is an assumption, if found false, could alter the appraiser's conclusions or opinions.
Question 7: Under USPAP, an appraiser who lacks competency for an assignment must:
- Decline the assignment immediately
- Disclose the lack of competency only if asked by the client
- Either acquire competency before or during the assignment, or associate with a competent appraiser (Correct answer)
- Complete the assignment and note limitations in the report
Correct answer: Either acquire competency before or during the assignment, or associate with a competent appraiser
The Competency Rule requires the appraiser to either acquire necessary competency, associate with a competent appraiser, or decline the assignment.
USPAP USPAP Residential Appraiser 2
Under USPAP, which type of appraisal report provides the least detail about the appraiser's analysis?