USPAP Test Questions and Complete Solutions

What is the stated purpose of USPAP? Promote and maintain the public trust USPAP compliance is required of: Appraisers required by law, regulation, agreement or choice to be USPAP compliant A client makes several requests of an appraiser who is completing an appraisal assignment. Which of these client requests is an assignment condition as defined by USPAP? The appraiser must, at minimum, develop the sales comparison and the cost approach Which of the following is not a requirement of a written Appraisal Report, prepared in compliance with USPAP? It must contain a copy of the deed or other type of legal description Which statement is TRUE about the effective date of an appraisal? It establishes the context of the value opinion. The effective date establishes the context of the value opinion. The effective date may be before, on, or after the date of In an appraisal of a multi-family residence, which of these would NOT be an assignment result? Building measurements An appraiser does not possess the knowledge and experience to perform an assignment, but wishes to perform the assignment anyway. Which action would NOT be required by USPAP? Inform the client after the report has been delivered about the initial lack of competency and the steps that were taken to complete it competently. The competency rule calls for full disclosure to the client about the valuation professional's lack of knowledge and/or experience. Disclosure should be made as soon as the situation becomes apparent to the appraiser-either before agreeing to perform the assignment or during the assignment, whenever the lack of knowledge and experience becomes known to the appraiser. Feasibility Analysis A feasibility analysis is a study of the cost-benefit relationship of an economic endeavor. See Definitions undef USPAP