NATIONAL USPAP COURSE EXAM
COMPREHENSIVE STUDY GUIDE
◉ The Appraisal Foundation has the authority to enforce the
requirements of USPAP.
T or F
Answer: false
The Appraisal Foundation is a private entity. The Foundation and its
boards have no enforcement authority in any jurisdiction.
◉ Currently, the boards within The Appraisal Foundation include:
Answer: Appraisal Standards Board, Appraiser Qualifications Board,
Board of Trustees
◉ Bias is permitted in an appraisal as long as the bias is clearly
disclosed in the report.
Answer: False
◉ In appraisal practice, advocating the cause or interest of any party
or issue is:
,Answer: Not permitted
Under the ETHICS RULE, an individual acting as an appraiser must
not advocate the cause or interest of any party or issue.
◉ The ethical obligations of USPAP apply to:
Answer: Individual appraisers
USPAP does not apply to appraisal companies; however, the ETHICS
RULE exhorts appraisers who are employed by companies who do
not conduct themselves in accordance with USPAP to take whatever
steps are appropriate to ensure USPAP compliance. USPAP does not
apply to appraisal clients.
◉ An appraiser must disclose any service he or she provided
regarding the subject property for a period of _________ prior to
agreeing to perform the assignment.
Answer: Three years
◉ An appraiser is disclosing to a client the fact that she had
previously appraised the subject property within the prior three
years. When making this disclosure, the appraiser must be careful
to:
Answer: Not disclose confidential information from the previous
assignment
,◉ An appraiser has been asked to complete an appraisal assignment.
The fee is to be paid only if the loan closes. According to USPAP, may
the appraiser accept the assignment under these conditions?
Answer: No, the fee arrangement is an unethical contingency
arrangement and violates the ETHICS RULE.
◉ In a real property appraisal assignment prepared for a mortgage
lender, an appraiser is permitted by USPAP to base his compensation
for an appraisal assignment on:
Answer: Whether or not the report is transmitted to the client by the
due date
An appraiser may base his or her fee on whether or not the report is
delivered in a timely manner. However, the other answer choices
were all listed in the ETHICS RULE as unethical contingencies.
◉ The Confidentiality section of the ETHICS RULE prohibits an
appraiser from disclosing confidential information or _________ to
unauthorized parties.
Answer: Assignment results
◉ An appraiser concludes that a subject property has functional
inadequacies. This conclusion is:
Answer: An assignment result and must be treated as confidential
, ◉ In most cases, an appraiser may share __________ from an appraisal
assignment with other appraisers without obtaining the client's
consent.
Answer: Physical characteristics
◉ An appraiser completes an appraisal and transmits the report to
the client. The report copy retained in the appraiser's workfile does
not have a signature affixed to it. Is this permissible under USPAP?
Answer: No, a true copy must include a signature
◉ An appraiser prepared an appraisal report in April 2019. He
testified in court regarding the value of the property in January
2020. The decision was rendered in February 2020 and was
appealed in April 2020. The appellate court heard the case in
January 2021 and remanded the case for reconsideration by the
lower court. Final disposition of the case occurred in September
2021. At a minimum, how long must the appraiser retain his
workfile?
Answer: April 2024
An appraiser must retain the workfile for five years after
preparation or two years after final disposition of any judicial
proceeding in which the appraiser provided testimony related to the
assignment, whichever period is later. April 2024 (five years after
COMPREHENSIVE STUDY GUIDE
◉ The Appraisal Foundation has the authority to enforce the
requirements of USPAP.
T or F
Answer: false
The Appraisal Foundation is a private entity. The Foundation and its
boards have no enforcement authority in any jurisdiction.
◉ Currently, the boards within The Appraisal Foundation include:
Answer: Appraisal Standards Board, Appraiser Qualifications Board,
Board of Trustees
◉ Bias is permitted in an appraisal as long as the bias is clearly
disclosed in the report.
Answer: False
◉ In appraisal practice, advocating the cause or interest of any party
or issue is:
,Answer: Not permitted
Under the ETHICS RULE, an individual acting as an appraiser must
not advocate the cause or interest of any party or issue.
◉ The ethical obligations of USPAP apply to:
Answer: Individual appraisers
USPAP does not apply to appraisal companies; however, the ETHICS
RULE exhorts appraisers who are employed by companies who do
not conduct themselves in accordance with USPAP to take whatever
steps are appropriate to ensure USPAP compliance. USPAP does not
apply to appraisal clients.
◉ An appraiser must disclose any service he or she provided
regarding the subject property for a period of _________ prior to
agreeing to perform the assignment.
Answer: Three years
◉ An appraiser is disclosing to a client the fact that she had
previously appraised the subject property within the prior three
years. When making this disclosure, the appraiser must be careful
to:
Answer: Not disclose confidential information from the previous
assignment
,◉ An appraiser has been asked to complete an appraisal assignment.
The fee is to be paid only if the loan closes. According to USPAP, may
the appraiser accept the assignment under these conditions?
Answer: No, the fee arrangement is an unethical contingency
arrangement and violates the ETHICS RULE.
◉ In a real property appraisal assignment prepared for a mortgage
lender, an appraiser is permitted by USPAP to base his compensation
for an appraisal assignment on:
Answer: Whether or not the report is transmitted to the client by the
due date
An appraiser may base his or her fee on whether or not the report is
delivered in a timely manner. However, the other answer choices
were all listed in the ETHICS RULE as unethical contingencies.
◉ The Confidentiality section of the ETHICS RULE prohibits an
appraiser from disclosing confidential information or _________ to
unauthorized parties.
Answer: Assignment results
◉ An appraiser concludes that a subject property has functional
inadequacies. This conclusion is:
Answer: An assignment result and must be treated as confidential
, ◉ In most cases, an appraiser may share __________ from an appraisal
assignment with other appraisers without obtaining the client's
consent.
Answer: Physical characteristics
◉ An appraiser completes an appraisal and transmits the report to
the client. The report copy retained in the appraiser's workfile does
not have a signature affixed to it. Is this permissible under USPAP?
Answer: No, a true copy must include a signature
◉ An appraiser prepared an appraisal report in April 2019. He
testified in court regarding the value of the property in January
2020. The decision was rendered in February 2020 and was
appealed in April 2020. The appellate court heard the case in
January 2021 and remanded the case for reconsideration by the
lower court. Final disposition of the case occurred in September
2021. At a minimum, how long must the appraiser retain his
workfile?
Answer: April 2024
An appraiser must retain the workfile for five years after
preparation or two years after final disposition of any judicial
proceeding in which the appraiser provided testimony related to the
assignment, whichever period is later. April 2024 (five years after
