, Question 1
An appraiser is asked to appraise a property for a mortgage refinance but
discovers that the subject is located in a state where the appraisal is exempt
from USPAP under state law. Which USPAP provision allows the appraiser to
deviate from USPAP requirements in this instance?
A. Competency Rule
B. Jurisdictional Exception
C. Scope of Work Rule
D. Ethics Rule
Correct Answer: B - Jurisdictional Exception
RATIONALE
The Jurisdictional Exception allows an appraiser to disregard a
specific USPAP requirement when it conflicts with law or regulation.
The Competency Rule addresses knowledge and experience, the Scope
of Work Rule defines the research needed, and the Ethics Rule governs
conduct, not legal exceptions.
Question 2
In a complex commercial appraisal, the appraiser uses a discounted cash flow
analysis but fails to disclose that the terminal capitalization rate was derived
from a proprietary model. Which USPAP Standard is most directly violated?
A. Standard 1 - Development
B. Standard 2 - Reporting
C. Standard 3 - Review
D. Standard 4 - Consulting
Correct Answer: B - Standard 2 - Reporting
Page 2
, RATIONALE
Standard 2 requires clear and accurate reporting of all assumptions and
limiting conditions, including the source of key inputs. Standard 1
governs development, but the failure to disclose is a reporting
deficiency. Standards 3 and 4 apply to review and consulting, not
primary appraisal.
Question 3
An appraiser completes a desktop appraisal for a lender but does not inspect
the property. Under the 2026 USPAP, which statement best describes the
appraiser's obligation regarding the Scope of Work?
A. The appraiser must always conduct a personal inspection for any
appraisal.
B. The appraiser must disclose the lack of inspection and the resulting
limitations.
C. The appraiser can omit the Scope of Work if the client waives it.
D. The appraiser must upgrade to a full appraisal if the property is over
10 years old.
Correct Answer: B - The appraiser must disclose the lack of
inspection and the resulting limitations.
RATIONALE
The Scope of Work Rule requires the appraiser to identify the
problem, determine the appropriate scope, and disclose any limitations
such as no inspection. Inspection is not mandatory if the scope is
properly defined and disclosed. Waivers by the client do not override
USPAP requirements.
Page 3
, Question 4
An appraiser signs a certification that states, 'I have no present or prospective
interest in the property.' Later, the appraiser's spouse inherits a 10% interest in
the property. Which USPAP Ethics Rule requirement is most directly
implicated?
A. Objectivity
B. Independence
C. Disclosure of conflicts of interest
D. Confidentiality
Correct Answer: C - Disclosure of conflicts of interest
RATIONALE
The Ethics Rule mandates disclosure of any conflict of interest,
including those of immediate family members. Objectivity and
independence are related but the specific requirement to disclose a
spouse's interest is a conflict-of-interest disclosure. Confidentiality
pertains to client information, not conflicts.
Question 5
An appraiser is reviewing another appraiser's report and finds that the original
appraiser used a comparable sale that closed after the effective date. Under
USPAP Standard 3, what is the reviewer's primary obligation?
A. Accept the comparable because it is the most recent sale.
B. Disclose the use of a post-effective-date sale as a deviation from
typical practice.
C. Reject the report entirely and report the appraiser to the state board.
D. Recompute the value using only sales before the effective date.
Correct Answer: B - Disclose the use of a post-effective-date sale
as a deviation from typical practice.
Page 4
An appraiser is asked to appraise a property for a mortgage refinance but
discovers that the subject is located in a state where the appraisal is exempt
from USPAP under state law. Which USPAP provision allows the appraiser to
deviate from USPAP requirements in this instance?
A. Competency Rule
B. Jurisdictional Exception
C. Scope of Work Rule
D. Ethics Rule
Correct Answer: B - Jurisdictional Exception
RATIONALE
The Jurisdictional Exception allows an appraiser to disregard a
specific USPAP requirement when it conflicts with law or regulation.
The Competency Rule addresses knowledge and experience, the Scope
of Work Rule defines the research needed, and the Ethics Rule governs
conduct, not legal exceptions.
Question 2
In a complex commercial appraisal, the appraiser uses a discounted cash flow
analysis but fails to disclose that the terminal capitalization rate was derived
from a proprietary model. Which USPAP Standard is most directly violated?
A. Standard 1 - Development
B. Standard 2 - Reporting
C. Standard 3 - Review
D. Standard 4 - Consulting
Correct Answer: B - Standard 2 - Reporting
Page 2
, RATIONALE
Standard 2 requires clear and accurate reporting of all assumptions and
limiting conditions, including the source of key inputs. Standard 1
governs development, but the failure to disclose is a reporting
deficiency. Standards 3 and 4 apply to review and consulting, not
primary appraisal.
Question 3
An appraiser completes a desktop appraisal for a lender but does not inspect
the property. Under the 2026 USPAP, which statement best describes the
appraiser's obligation regarding the Scope of Work?
A. The appraiser must always conduct a personal inspection for any
appraisal.
B. The appraiser must disclose the lack of inspection and the resulting
limitations.
C. The appraiser can omit the Scope of Work if the client waives it.
D. The appraiser must upgrade to a full appraisal if the property is over
10 years old.
Correct Answer: B - The appraiser must disclose the lack of
inspection and the resulting limitations.
RATIONALE
The Scope of Work Rule requires the appraiser to identify the
problem, determine the appropriate scope, and disclose any limitations
such as no inspection. Inspection is not mandatory if the scope is
properly defined and disclosed. Waivers by the client do not override
USPAP requirements.
Page 3
, Question 4
An appraiser signs a certification that states, 'I have no present or prospective
interest in the property.' Later, the appraiser's spouse inherits a 10% interest in
the property. Which USPAP Ethics Rule requirement is most directly
implicated?
A. Objectivity
B. Independence
C. Disclosure of conflicts of interest
D. Confidentiality
Correct Answer: C - Disclosure of conflicts of interest
RATIONALE
The Ethics Rule mandates disclosure of any conflict of interest,
including those of immediate family members. Objectivity and
independence are related but the specific requirement to disclose a
spouse's interest is a conflict-of-interest disclosure. Confidentiality
pertains to client information, not conflicts.
Question 5
An appraiser is reviewing another appraiser's report and finds that the original
appraiser used a comparable sale that closed after the effective date. Under
USPAP Standard 3, what is the reviewer's primary obligation?
A. Accept the comparable because it is the most recent sale.
B. Disclose the use of a post-effective-date sale as a deviation from
typical practice.
C. Reject the report entirely and report the appraiser to the state board.
D. Recompute the value using only sales before the effective date.
Correct Answer: B - Disclose the use of a post-effective-date sale
as a deviation from typical practice.
Page 4
