MCKISSOCK BASIC APPRAISAL PRINCIPLES EXAM QUESTIONS WITH COMPLETE SOLUTIONS AND RATIONALES

MCKISSOCK BASIC APPRAISAL PRINCIPLES EXAM
QUESTIONS WITH COMPLETE SOLUTIONS AND
RATIONALES

1. Grant Deed Definition

 A. Deed with all covenants of title

 B. Deed with no covenants of title

 C. Deed containing some covenants of title

 D. Oral agreement to transfer property

Answer: C
Rationale: A grant deed contains some, but not all, of the usual covenants of title.



2. Appraiser Role

 A. Valuation expert performing independent, impartial services

 B. Property manager handling financial records

 C. Real estate agent negotiating property sales

 D. Lender assessing financial transactions

Answer: A
Rationale: An appraiser is responsible for independent and objective valuation services.



3. Appraisal Report

 A. Formal property sale agreement

 B. Communication of appraisal results to the client

 C. Government document on property ownership

 D. Legal judgment on property disputes

,Answer: B
Rationale: An appraisal report communicates valuation findings to the client.



4. Narrative Report

 A. Oral summary of an appraisal

 B. Written valuation results in narrative style

 C. Data-only report with no explanations

 D. Simplified checklist format for appraisals

Answer: B
Rationale: A narrative report presents detailed valuation results in writing.



5. Role of AQB (Appraiser Qualifications Board)

 A. Sets state-specific guidelines for appraisers

 B. Establishes licensing and certification qualifications

 C. Audits appraisal organizations for accuracy

 D. Approves individual appraisal reports

Answer: B
Rationale: AQB establishes qualification standards for appraisers nationwide.



6. Effective Date for Major AQB Changes

 A. January 8, 2008

 B. May 1, 2000

 C. March 15, 1998

 D. December 31, 2010

Answer: A
Rationale: Major revisions to the criteria became effective on January 8, 2008.

,7. Uniform Standards of Professional Appraisal Practice (USPAP)

 A. Created in 1987 and adopted by ASB in 1989

 B. Established by Congress in 1986

 C. Governed by state appraisal boards since 1985

 D. Created exclusively for federal property valuations

Answer: A
Rationale: USPAP was created in 1987 and formally adopted by ASB in 1989.



8. Appraisal Foundation Principal Boards

 A. Board of Trustees, Appraisal Standards Board, Appraiser Qualifications Board

 B. Finance Committee, Audit Committee, and Board of Governors

 C. Standards Committee, Review Board, Audit Committee

 D. Federal Appraisal Oversight Board

Answer: A
Rationale: The three main boards are BOT, ASB, and AQB.



9. Appraisal Subcommittee (ASC) Role

 A. Establishes property ownership laws

 B. Oversees state licensing and certification agencies

 C. Approves individual appraisers for certification

 D. Conducts private property appraisals for clients

Answer: B
Rationale: The ASC is a federal entity that monitors state appraisal boards.



10. Definition of AMCs (Appraisal Management Companies)

 A. Companies managing property construction

 B. Agencies overseeing independent appraisers

,  C. Firms managing appraisal assignments for clients

 D. Legal bodies regulating property disputes

Answer: C
Rationale: AMCs are companies that coordinate and manage appraisal assignments.



11. HUD's Fair Lending Enforcement

 A. Regulates property development costs

 B. Addresses complaints related to fair lending practices

 C. Oversees appraiser qualification standards

 D. Audits federal appraisal organizations

Answer: B
Rationale: HUD enforces fair lending laws by acting on related complaints.



12. Savings and Loan Crisis Timeline

 A. Early 1980s

 B. Early 1960s

 C. Late 1970s

 D. Mid-1990s

Answer: B
Rationale: The Savings and Loan Crisis occurred in the early 1960s.



13. Purpose of Appraisal Practices Board (APB)

 A. Provides guidance on valuation methods and techniques

 B. Creates laws governing appraisers

 C. Monitors appraisal review processes

 D. Approves appraisal licenses