USPAP EXAM, FINAL EXAM, PRACTICE EXAM AND COURSE
EXAM LATEST ACTUAL EXAM TEST WITH QUESTIONS AND
CORRECT DETAILED ANSWERS | GRADED A+
The subject of an appraisal review assignment may be
a property that had been previously valued by another appraiser
another appraiser's work that is completed as part of an appraisal or appraisal review assignment
any written work that is part of appraisal practice
any work that is completed by a state licensed or certified appraiser - ANSWER
USPAP is enforced by:
The Federal Financial Institutions Examination Council (FFIEC)
State appraiser licensing/certification agencies
Appraisal Subcommittee (ASC)
Appraisal Standards Board (ASB) - ANSWER ASB
Which of these is considered an integral part of USPAP and has the same weight as the components
they address?
USPAP FAQs
USPAP Q&As
Comments
Advisory Opinions - ANSWER Comments are an integral part of USPAP and have the same weight as
the components they address. Advisory Opinions, USPAP Q & As and USPAP FAQs are considered
"other communications."
Which entity maintains the official National Registry of state-certified and licensed appraisers?
Appraiser Qualifications Board (AQB)
Federal Reserve Board (FRB)
Appraisal Standards Board (ASB)
Appraisal Subcommittee (ASC) - ANSWER ASC
Why are USPAP Advisory Opinions issued?
,To revise existing standards
To establish new appraisal standards
To interpret existing standards
To offer advice - ANSWER To offer advice
The requirement for USPAP compliance in an appraisal assignment could be the result of:
Agreement with the client
Voluntary choice by the appraiser
Law or regulation
Any of these ANSWERs - ANSWER Any of these ANSWERs
A valuation service that is premised upon advocacy:
Can be performed by an individual acting as an appraiser with appropriate disclosure
It cannot be performed by an individual acting as an appraiser
Must be performed under the SCOPE OF WORK RULE
Is an appraisal review assignment under STANDARDS 3 and 4 - ANSWER It cannot be performed by an
individual acting as an appraiser
If a valuation service is premised on advocacy or compensation arrangements that are contrary to
the ETHICS RULE, the valuation service is not consistent with the objectives of USPAP and cannot be
performed by the individual acting as an appraiser.
A client has repaired a property that was damaged due to flooding. Several neighboring properties
that were similarly flooded and later repaired soon developed mold problems. The client's property
shows no evidence of mold as of the effective date. What type of assignment condition should the
appraiser use if the client wants a current value opinion of the property?
Assumption
Extraordinary assumption
Hypothetical condition - ANSWER Extraordinary assumption
The appraiser should use an extraordinary assumption, because as of the date of value, the fact of
the potential condition (i.e., mold) is unknown, and it is reasonable to believe the current condition
is true.
, A client wants to know the current value, as though repaired, of a property that has been damaged
due to flooding from a severe storm. What type of assignment condition should the appraiser use?
Assumption
Extraordinary assumption
Hypothetical condition - ANSWER Hypothetical condition
"The monetary relationship between properties and those who buy, sell or use those properties" is
the definition of:
Cost
None of these
Value
Price - ANSWER Value
By using a published cost manual, an appraiser determines that the construction cost of a 2,500
square foot dwelling is $400,000. This figure represents the dwelling's:
Cost
Value
Price - ANSWER Cost
An appraiser receives a copy of a signed sales agreement for an office building, which specifies the
agreed-upon amount of $950,000. What does this figure represent?
Cost
Value
Price - ANSWER Price
Examples of Assignment Results
If an appraiser develops an appraisal on a property and concludes that its value is $500,000, then
that value opinion is an assignment result. There might be other assignment results that are
developed as part of this assignment, such as a highest and best use opinion, a site value opinion, an
opinion of market rent, and others.
If a review appraiser develops an opinion that the appraisal report he or she is reviewing is
acceptable and of good quality, then that opinion of quality is an assignment result.
Physical characteristics, such as the lot size or building square footage, are not assignment results. -
ANSWER
EXAM LATEST ACTUAL EXAM TEST WITH QUESTIONS AND
CORRECT DETAILED ANSWERS | GRADED A+
The subject of an appraisal review assignment may be
a property that had been previously valued by another appraiser
another appraiser's work that is completed as part of an appraisal or appraisal review assignment
any written work that is part of appraisal practice
any work that is completed by a state licensed or certified appraiser - ANSWER
USPAP is enforced by:
The Federal Financial Institutions Examination Council (FFIEC)
State appraiser licensing/certification agencies
Appraisal Subcommittee (ASC)
Appraisal Standards Board (ASB) - ANSWER ASB
Which of these is considered an integral part of USPAP and has the same weight as the components
they address?
USPAP FAQs
USPAP Q&As
Comments
Advisory Opinions - ANSWER Comments are an integral part of USPAP and have the same weight as
the components they address. Advisory Opinions, USPAP Q & As and USPAP FAQs are considered
"other communications."
Which entity maintains the official National Registry of state-certified and licensed appraisers?
Appraiser Qualifications Board (AQB)
Federal Reserve Board (FRB)
Appraisal Standards Board (ASB)
Appraisal Subcommittee (ASC) - ANSWER ASC
Why are USPAP Advisory Opinions issued?
,To revise existing standards
To establish new appraisal standards
To interpret existing standards
To offer advice - ANSWER To offer advice
The requirement for USPAP compliance in an appraisal assignment could be the result of:
Agreement with the client
Voluntary choice by the appraiser
Law or regulation
Any of these ANSWERs - ANSWER Any of these ANSWERs
A valuation service that is premised upon advocacy:
Can be performed by an individual acting as an appraiser with appropriate disclosure
It cannot be performed by an individual acting as an appraiser
Must be performed under the SCOPE OF WORK RULE
Is an appraisal review assignment under STANDARDS 3 and 4 - ANSWER It cannot be performed by an
individual acting as an appraiser
If a valuation service is premised on advocacy or compensation arrangements that are contrary to
the ETHICS RULE, the valuation service is not consistent with the objectives of USPAP and cannot be
performed by the individual acting as an appraiser.
A client has repaired a property that was damaged due to flooding. Several neighboring properties
that were similarly flooded and later repaired soon developed mold problems. The client's property
shows no evidence of mold as of the effective date. What type of assignment condition should the
appraiser use if the client wants a current value opinion of the property?
Assumption
Extraordinary assumption
Hypothetical condition - ANSWER Extraordinary assumption
The appraiser should use an extraordinary assumption, because as of the date of value, the fact of
the potential condition (i.e., mold) is unknown, and it is reasonable to believe the current condition
is true.
, A client wants to know the current value, as though repaired, of a property that has been damaged
due to flooding from a severe storm. What type of assignment condition should the appraiser use?
Assumption
Extraordinary assumption
Hypothetical condition - ANSWER Hypothetical condition
"The monetary relationship between properties and those who buy, sell or use those properties" is
the definition of:
Cost
None of these
Value
Price - ANSWER Value
By using a published cost manual, an appraiser determines that the construction cost of a 2,500
square foot dwelling is $400,000. This figure represents the dwelling's:
Cost
Value
Price - ANSWER Cost
An appraiser receives a copy of a signed sales agreement for an office building, which specifies the
agreed-upon amount of $950,000. What does this figure represent?
Cost
Value
Price - ANSWER Price
Examples of Assignment Results
If an appraiser develops an appraisal on a property and concludes that its value is $500,000, then
that value opinion is an assignment result. There might be other assignment results that are
developed as part of this assignment, such as a highest and best use opinion, a site value opinion, an
opinion of market rent, and others.
If a review appraiser develops an opinion that the appraisal report he or she is reviewing is
acceptable and of good quality, then that opinion of quality is an assignment result.
Physical characteristics, such as the lot size or building square footage, are not assignment results. -
ANSWER
