MCKISSOCK BASIC APPRAISAL PRINCIPLES I
- 300 PRACTICE EXAM QUESTIONS AND
ANSWERS WITH RATIONALES LATEST
UPDATE 2026
Question 1: Which organization has oversight authority over state appraisal
boards?
A) The Appraisal Foundation
B) Appraisal Standards Board (ASB)
C) Appraisal Subcommittee (ASC)
D) Appraiser Qualifications Board (AQB)
Correct Answer: C) Appraisal Subcommittee (ASC)
Rationale: The Appraisal Subcommittee (ASC) has oversight authority over state
appraisal boards. It monitors state compliance with federal appraisal regulations
and maintains a national registry of state certified and licensed appraisers who are
eligible to perform appraisals in federally related transactions.
---
Question 2: Which of the following is a requirement of a valid real estate contract?
A) Verbal agreement only
B) Consideration, in writing and signed, and lawful objective
C) Notarization by a public official
,D) Approval by a real estate broker
Correct Answer: B) Consideration, in writing and signed, and lawful objective
Rationale: A valid real estate contract must include consideration, be in writing and
signed by the parties, and have a lawful objective. These elements are essential for
contract enforceability.
---
Question 3: USPAP defines an appraiser as:
A) One who holds a real estate license
B) One who performs valuation services competently and in a manner that is
independent, impartial, and objective
C) One who has completed a college degree in finance
D) One who works for a government agency
Correct Answer: B) One who performs valuation services competently and in a
manner that is independent, impartial, and objective
Rationale: The Uniform Standards of Professional Appraisal Practice (USPAP)
defines an appraiser as someone who is expected to perform valuation services
competently and in a manner that is independent, impartial, and objective.
---
Question 4: FIRREA stands for:
,A) Federal Insurance Regulatory and Real Estate Act
B) Financial Institutions Reform, Recovery, and Enforcement Act of 1989
C) Federal Investment and Real Estate Regulatory Act
D) Financial Investment and Recovery Reform Act
Correct Answer: B) Financial Institutions Reform, Recovery, and Enforcement Act
of 1989
Rationale: FIRREA was enacted in 1989 in response to the savings and loan crisis.
It established requirements for real estate appraisals used in federally related
transactions and created the Appraisal Subcommittee.
---
Question 5: The Appraisal Foundation has three principal boards. Which of the
following is NOT one of them?
A) Board of Trustees (BOT)
B) Appraisal Standards Board (ASB)
C) Appraiser Qualifications Board (AQB)
D) Appraisal Review Board (ARB)
Correct Answer: D) Appraisal Review Board (ARB)
Rationale: The Appraisal Foundation has three principal boards: the Board of
Trustees (BOT), the Appraisal Standards Board (ASB), and the Appraiser
Qualifications Board (AQB). There is no Appraisal Review Board as a principal
board of the Foundation.
, ---
Question 6: What is one of the first things an appraiser must do when accepting an
assignment?
A) Determine the fee for the appraisal
B) Identify the client and intended users, and identify the intended use
C) Inspect the property immediately
D) Order a title search
Correct Answer: B) Identify the client and intended users, and identify the intended
use
Rationale: When accepting an assignment, the appraiser must first identify the
client and intended users, as well as the intended use of the appraiser's opinions
and conclusions. This establishes the scope of work and ensures the appraiser
understands who they are serving and why.
---
Question 7: "Credible" in the appraisal world is defined as:
A) Accurate to the nearest dollar
B) Worthy of belief
C) Guaranteed by the appraiser
D) Approved by the client
Correct Answer: B) Worthy of belief
- 300 PRACTICE EXAM QUESTIONS AND
ANSWERS WITH RATIONALES LATEST
UPDATE 2026
Question 1: Which organization has oversight authority over state appraisal
boards?
A) The Appraisal Foundation
B) Appraisal Standards Board (ASB)
C) Appraisal Subcommittee (ASC)
D) Appraiser Qualifications Board (AQB)
Correct Answer: C) Appraisal Subcommittee (ASC)
Rationale: The Appraisal Subcommittee (ASC) has oversight authority over state
appraisal boards. It monitors state compliance with federal appraisal regulations
and maintains a national registry of state certified and licensed appraisers who are
eligible to perform appraisals in federally related transactions.
---
Question 2: Which of the following is a requirement of a valid real estate contract?
A) Verbal agreement only
B) Consideration, in writing and signed, and lawful objective
C) Notarization by a public official
,D) Approval by a real estate broker
Correct Answer: B) Consideration, in writing and signed, and lawful objective
Rationale: A valid real estate contract must include consideration, be in writing and
signed by the parties, and have a lawful objective. These elements are essential for
contract enforceability.
---
Question 3: USPAP defines an appraiser as:
A) One who holds a real estate license
B) One who performs valuation services competently and in a manner that is
independent, impartial, and objective
C) One who has completed a college degree in finance
D) One who works for a government agency
Correct Answer: B) One who performs valuation services competently and in a
manner that is independent, impartial, and objective
Rationale: The Uniform Standards of Professional Appraisal Practice (USPAP)
defines an appraiser as someone who is expected to perform valuation services
competently and in a manner that is independent, impartial, and objective.
---
Question 4: FIRREA stands for:
,A) Federal Insurance Regulatory and Real Estate Act
B) Financial Institutions Reform, Recovery, and Enforcement Act of 1989
C) Federal Investment and Real Estate Regulatory Act
D) Financial Investment and Recovery Reform Act
Correct Answer: B) Financial Institutions Reform, Recovery, and Enforcement Act
of 1989
Rationale: FIRREA was enacted in 1989 in response to the savings and loan crisis.
It established requirements for real estate appraisals used in federally related
transactions and created the Appraisal Subcommittee.
---
Question 5: The Appraisal Foundation has three principal boards. Which of the
following is NOT one of them?
A) Board of Trustees (BOT)
B) Appraisal Standards Board (ASB)
C) Appraiser Qualifications Board (AQB)
D) Appraisal Review Board (ARB)
Correct Answer: D) Appraisal Review Board (ARB)
Rationale: The Appraisal Foundation has three principal boards: the Board of
Trustees (BOT), the Appraisal Standards Board (ASB), and the Appraiser
Qualifications Board (AQB). There is no Appraisal Review Board as a principal
board of the Foundation.
, ---
Question 6: What is one of the first things an appraiser must do when accepting an
assignment?
A) Determine the fee for the appraisal
B) Identify the client and intended users, and identify the intended use
C) Inspect the property immediately
D) Order a title search
Correct Answer: B) Identify the client and intended users, and identify the intended
use
Rationale: When accepting an assignment, the appraiser must first identify the
client and intended users, as well as the intended use of the appraiser's opinions
and conclusions. This establishes the scope of work and ensures the appraiser
understands who they are serving and why.
---
Question 7: "Credible" in the appraisal world is defined as:
A) Accurate to the nearest dollar
B) Worthy of belief
C) Guaranteed by the appraiser
D) Approved by the client
Correct Answer: B) Worthy of belief
