USPAP EXAM QUESTIONS AND CORRECT ANSWERS

USPAP EXAM QUESTIONS AND CORRECT ANSWERS A client engages an appraiser to complete an appraisal on a residential property, and the appraiser reports the assignment results in a Restricted Appraisal Report. Which statement is true regarding the appraiser's workfile obligations for this assignment? -Answer- The data and documentation in the workfile must be sufficient to produce an Appraisal Report. A client engages an appraiser to complete an appraisal on a residential property; the appraiser develops a value opinion and transmits the report to the client. Three years later, the client files a complaint against the appraiser with the state appraiser regulatory agency. The agency contacts the appraiser and requests the appraiser make the assignment workfile available to the agency. The appraiser is concerned about confidentiality. Under USPAP, may the appraiser refuse to provide workfile access to the state regulatory agency? -Answer- No, the RECORD KEEPING RULE requires the appraiser to make the workfile available to the state appraiser regulatory agency 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? -Answer- The appraiser must, at minimum, develop the sales comparison and the cost approach A client's business partner contacts an appraiser and requests information relating to an appraisal report the appraiser had prepared for the client. May the appraiser disclose the results of the appraisal to the client's business partner? -Answer- Yes, provided the appraiser obtains authorization from the client before sharing any confidential information A lender has contacted an appraiser to determine the high and low sale prices in the past year that took place in the Green Hills Subdivision. No mention was made of a subject property by the lender. The appraiser supplied a list of all sales within the past year in the subdivision and billed the lender for service. The service being provided by the appraiser is -Answer- Appraisal practice with no performance standards or record keeping requirements A local builder hires you to provide a market value appraisal in order to secure financing for a construction loan. He provides you with the necessary plans and specifications for the proposed construction. The site is currently zoned R-1 single-family residential, but the developer is planning to build a duplex. He has already filed to change the zoning to R-2 with the city zoning department and is quite confident that his application will be approved. The change will permit up to two residential units to be built on one lot. You appraise the property using a current effective date, and value the property as though the zoning had been changed by the effective date of the appraisal. In order to conform to USPAP, you must use a(n): -Answer- Hypothetical condition