South Carolina Real Estate Appraisal Exam Practice –
Multiple-Choice Questions with Answers and
USPAP-Focused Study Guide
SECTION 1 – USPAP, Ethics, and Scope of Work (Q1–30)
Q1. The primary purpose of USPAP is to:
A. Set state licensing fees
B. Establish minimum standards for ethical and competent appraisal practice
C. Define tax rates for properties
D. Regulate mortgage interest rates
B. Establish minimum standards for ethical and competent appraisal
practice
Q2. Which USPAP rule focuses on honesty, impartiality, and avoidance of bias?
A. Competency Rule
B. Scope of Work Rule
C. Ethics Rule
D. Jurisdictional Exception Rule
C. Ethics Rule
Q3. Under USPAP, an appraiser must be competent in:
A. Only local market conditions
B. The type of property, the market, and the specific assignment type
C. Only one property type
D. Federal tax law
B. The type of property, the market, and the specific assignment type
,Q4. If an appraiser lacks competency for an assignment, USPAP requires that
they:
A. Decline the assignment automatically
B. Acquire the necessary competency or associate with someone who has it
C. Ignore the competence issue
D. Only disclose it to the client after completion
B. Acquire the necessary competency or associate with someone who has
it
Q5. The workfile must contain:
A. Only the final report
B. Sufficient information to support the appraiser’s opinions, conclusions, and
report
C. Only comparable sales addresses
D. Tax bills and utility records
B. Sufficient information to support the appraiser’s opinions, conclusions,
and report
Q6. The minimum workfile retention period under USPAP (unless state law
requires more) is:
A. 1 year
B. 2 years
C. 5 years, or 2 years after final disposition of a judicial proceeding, whichever is
longer
D. 10 years
C. 5 years, or 2 years after final disposition of a judicial proceeding,
whichever is longer
,Q7. A “hypothetical condition” is:
A. Something known to be false but assumed for analysis
B. A minor assumption about utilities
C. A standard assumption about market value
D. A guess about buyer motivation
A. Something known to be false but assumed for analysis
Q8. An “extraordinary assumption” is:
A. Always illegal under USPAP
B. An assumption about uncertain facts that, if proven false, could affect the
assignment results
C. The same as a hypothetical condition
D. Used only in income properties
B. An assumption about uncertain facts that, if proven false, could affect
the assignment results
Q9. USPAP requires disclosure of:
A. Every property the appraiser has ever appraised
B. Any current or prospective interest the appraiser has in the subject property
C. The appraiser’s home address
D. The appraiser’s personal investments
B. Any current or prospective interest the appraiser has in the subject
property
Q10. Which is an example of prohibited conduct under USPAP’s Management
section of the Ethics Rule?
, A. Charging a flat fee
B. Advertising fees based on the amount of value opinion
C. Using standard engagement letters
D. Accepting typical turn-around times
B. Advertising fees based on the amount of value opinion
Q11. Appraiser independence requires that:
A. Clients can dictate the value
B. Appraisers remain impartial and not advocate for any party
C. Appraisers always favor the lender’s desired outcome
D. Appraisers refuse to consider market evidence
B. Appraisers remain impartial and not advocate for any party
Q12. The Scope of Work Rule requires the appraiser to:
A. Use the same scope for every assignment
B. Identify and perform the type and extent of research and analyses needed to
produce credible results
C. Do only minimal research
D. Rely solely on client instructions
B. Identify and perform the type and extent of research and analyses
needed to produce credible results
Q13. “Jurisdictional exception” applies when:
A. USPAP conflicts with applicable law or regulation
B. USPAP is silent on an issue
C. The client disagrees with USPAP
D. The appraiser works in more than one state
Multiple-Choice Questions with Answers and
USPAP-Focused Study Guide
SECTION 1 – USPAP, Ethics, and Scope of Work (Q1–30)
Q1. The primary purpose of USPAP is to:
A. Set state licensing fees
B. Establish minimum standards for ethical and competent appraisal practice
C. Define tax rates for properties
D. Regulate mortgage interest rates
B. Establish minimum standards for ethical and competent appraisal
practice
Q2. Which USPAP rule focuses on honesty, impartiality, and avoidance of bias?
A. Competency Rule
B. Scope of Work Rule
C. Ethics Rule
D. Jurisdictional Exception Rule
C. Ethics Rule
Q3. Under USPAP, an appraiser must be competent in:
A. Only local market conditions
B. The type of property, the market, and the specific assignment type
C. Only one property type
D. Federal tax law
B. The type of property, the market, and the specific assignment type
,Q4. If an appraiser lacks competency for an assignment, USPAP requires that
they:
A. Decline the assignment automatically
B. Acquire the necessary competency or associate with someone who has it
C. Ignore the competence issue
D. Only disclose it to the client after completion
B. Acquire the necessary competency or associate with someone who has
it
Q5. The workfile must contain:
A. Only the final report
B. Sufficient information to support the appraiser’s opinions, conclusions, and
report
C. Only comparable sales addresses
D. Tax bills and utility records
B. Sufficient information to support the appraiser’s opinions, conclusions,
and report
Q6. The minimum workfile retention period under USPAP (unless state law
requires more) is:
A. 1 year
B. 2 years
C. 5 years, or 2 years after final disposition of a judicial proceeding, whichever is
longer
D. 10 years
C. 5 years, or 2 years after final disposition of a judicial proceeding,
whichever is longer
,Q7. A “hypothetical condition” is:
A. Something known to be false but assumed for analysis
B. A minor assumption about utilities
C. A standard assumption about market value
D. A guess about buyer motivation
A. Something known to be false but assumed for analysis
Q8. An “extraordinary assumption” is:
A. Always illegal under USPAP
B. An assumption about uncertain facts that, if proven false, could affect the
assignment results
C. The same as a hypothetical condition
D. Used only in income properties
B. An assumption about uncertain facts that, if proven false, could affect
the assignment results
Q9. USPAP requires disclosure of:
A. Every property the appraiser has ever appraised
B. Any current or prospective interest the appraiser has in the subject property
C. The appraiser’s home address
D. The appraiser’s personal investments
B. Any current or prospective interest the appraiser has in the subject
property
Q10. Which is an example of prohibited conduct under USPAP’s Management
section of the Ethics Rule?
, A. Charging a flat fee
B. Advertising fees based on the amount of value opinion
C. Using standard engagement letters
D. Accepting typical turn-around times
B. Advertising fees based on the amount of value opinion
Q11. Appraiser independence requires that:
A. Clients can dictate the value
B. Appraisers remain impartial and not advocate for any party
C. Appraisers always favor the lender’s desired outcome
D. Appraisers refuse to consider market evidence
B. Appraisers remain impartial and not advocate for any party
Q12. The Scope of Work Rule requires the appraiser to:
A. Use the same scope for every assignment
B. Identify and perform the type and extent of research and analyses needed to
produce credible results
C. Do only minimal research
D. Rely solely on client instructions
B. Identify and perform the type and extent of research and analyses
needed to produce credible results
Q13. “Jurisdictional exception” applies when:
A. USPAP conflicts with applicable law or regulation
B. USPAP is silent on an issue
C. The client disagrees with USPAP
D. The appraiser works in more than one state
