USPAP USPAP Residential Appraiser 3 — Questions and Answers
Question 1: Which of the following best describes 'scope of work' under USPAP?
- The geographic area covered by the appraisal
- The type and extent of research and analyses in an assignment (Correct answer)
- The list of all approaches to value considered
- The time period covered by the appraisal
Correct answer: The type and extent of research and analyses in an assignment
Scope of work is the type and extent of research and analyses in an appraisal assignment, determined by the appraiser.
Question 2: Under USPAP, how long must an appraiser retain the workfile for a residential appraisal assignment?
- At least 3 years after the date of the report, or 2 years after final disposition of any legal proceeding (Correct answer)
- At least 5 years from the date of the appraisal
- At least 7 years if the property was involved in a federally related transaction
- At least 1 year from the date the report was transmitted to the client
Correct answer: At least 3 years after the date of the report, or 2 years after final disposition of any legal proceeding
USPAP's Record Keeping Rule requires retaining the workfile at least 5 years from the report date, or 2 years after final disposition of legal proceedings — the longer period applies.
Question 3: A hypothetical condition in a USPAP appraisal is one that:
- Is contrary to known facts but is assumed for the purpose of analysis (Correct answer)
- Assumes market conditions will improve in the future
- Requires the appraiser to speculate about zoning changes
- Is a standard assumption about the property's legal status
Correct answer: Is contrary to known facts but is assumed for the purpose of analysis
A hypothetical condition is assumed to be true even though it is known to be contrary to existing fact, used for analytical purposes.
Question 4: Under USPAP's Ethics Rule — Confidentiality section, an appraiser may NOT disclose confidential information unless:
- The property is publicly listed for sale
- Disclosure is required by law or authorized by the client (Correct answer)
- The information has been in the public domain for more than 30 days
- Another appraiser requests it for peer review
Correct answer: Disclosure is required by law or authorized by the client
Confidential information may only be disclosed when required by law or when the client specifically authorizes disclosure.
Question 5: Which statement about the income approach in residential appraisals is most consistent with USPAP?
- The income approach is required for all residential appraisals
- The appraiser must consider and analyze all three approaches regardless of property type
- The appraiser may exclude an approach that is not relevant or not applicable (Correct answer)
- The income approach must always be reconciled with the sales comparison approach
Correct answer: The appraiser may exclude an approach that is not relevant or not applicable
USPAP allows the appraiser to exclude a valuation approach if it is not applicable or not relevant to the assignment, with explanation.
Question 6: When an appraiser signs a certification in a USPAP-compliant appraisal report, they are certifying that:
- The property will sell at or above the appraised value
- The analyses and conclusions are the appraiser's own unbiased professional analysis (Correct answer)
- The client has reviewed and approved the report contents
- The appraisal was completed within a specific number of days
Correct answer: The analyses and conclusions are the appraiser's own unbiased professional analysis
The USPAP certification requires the appraiser to certify that the analysis and conclusions are their own personal, unbiased professional work.
Question 7: A supervisory appraiser signs a residential appraisal report completed by a trainee. Under USPAP, the supervisory appraiser must:
- Personally inspect the property in all cases
- Accept responsibility for the report's content and the trainee's work (Correct answer)
- Be listed as the primary appraiser with the trainee's name excluded
- Re-perform all calculations independently before signing
Correct answer: Accept responsibility for the report's content and the trainee's work
A supervisory appraiser who co-signs a report accepts full responsibility for the appraisal and the work of the trainee appraiser.
USPAP USPAP Residential Appraiser 3
Which of the following best describes 'scope of work' under USPAP?