Basic Appraisal Principles
Appraiser - answer One who is expected to perform valuation services competently and
in a manner that is independent, impartial, and objective.
Appraisal Report - answer A report is defined in USPAP as: any communication, written
or oral, of an appraisal or appraisal review that is transmitted to the client or a party
authorized by the client upon completion of an assignment.
Narrative Appraisal Report - answer A written communication of the results of a
valuation or review assignment presented to the client in narrative style rather than on a
form or orally.
What are the components of the Real Property Appraiser Qualification Criteria? -
answer1. Qualifying Education
2. Experience
3. Examinations
4. Continuing Education
Continuing Education - answer The continuing education requirement is fourteen
classroom hours each year. As part of the overall fourteen-hour requirement, you must
complete the 7-Hour National USPAP Update Course or its equivalent every two
calendar years. Aside from complying with the requirements to complete the 7-Hour
National USPAP Update Course, or its equivalent, appraisers may not receive credit for
completion of the same continuing education course offering within an appraiser's
continuing education cycle.
Credit towards the continuing education hour requirements for each appraiser
classification may be granted only where the length of the educational offering is at least
two (2) hours.
Examination - answerTo become a State Licensed Residential, State Certified
Residential, or State Certified General appraiser, you must pass a comprehensive
uniform examination developed by the AQB, which is administered by a testing
contractor in your state. Of course, the exams differ based on the level of licensure or
certification an applicant is attempting to obtain.
Experience - answerBefore becoming licensed or certified as an appraiser, an individual
must accumulate a minimum number of appraisal experience hours as an appraiser
trainee (or equivalent).
True or False: Every State's Appraiser certification examination is different -
answerFalse: The AQB adopted new uniform State Appraiser Examinations in 2008. A
,small number of states choose to ad additional state-specific questions, but that does
not mean the exams are different in all states.
A Licensed or certified appraiser must take the 7-hour USPAP Update course Every
______ Years. - answerEvery 2 years.
The requirements for state licensed and certified appraisers had their genesis
in________. - answerFIRREA- Financial Institutions Reform, Recovery, and
Enforcement Act
True or False: An Applicant for Certified General appraiser must posses at least an
associate's degree from an accredited college or university. - answerFalse- Applicant for
Certified General must possess a Bachelor's degree.
If you have specific questions about appraisal certification or licensure requirements in
your state, you should: - answercontact the appraiser licensing and certification agency
in your state
For licensed and certified real property appraisers, _____ class hours of continuing
education are required each year. - answer14
The number of required classroom education hours for Licensed Residential Appraisers
under the 2018 AQB Criteria is ____ hours - answer150
The number of required classroom education hours for Certified Residential Appraisers
under the 2018 AQB Criteria is ____ hours. - answer200
The four components of the Appraiser Qualification Criteria include Continuing
Education, Examination, ____________, and ______________. - answerExperience
and Qualifying Education
To apply for an Appraiser Trainee license, an applicant must have _____ hours of
qualifying education courses and ______ creditable hours of experience. - answer75, 0
The current AQB experience requirement for Licensed Residential Real Property
Appraiser applicants is - answer1,000 hours in no less than 6 months
Which of the following situations would NOT normally require an appraisal? - answerlife
insurance
Who is responsible for approving education courses for licensing, certification, and re-
certification of appraisers? - answerIndividual states
The _____ is charged with establishing the qualifications that all the states must adopt
in licensing, certification and re-certification of appraisers. - answerAQB
,The Appraisal Foundation - answerThe Appraisal Foundation is a not-for-profit
organization, established exclusively for educational and scientific purposes. It is not a
professional appraisal organization or society. Membership in The Appraisal Foundation
is reserved for organizations; an individual appraiser cannot join TAF as a member.
After The Appraisal Foundation was formed, the Uniform Standards of Professional
Appraisal Practice was formally adopted by the Appraisal Standards Board (ASB) in
January 1989.
Today, The Appraisal Foundation has three principal boards:
Board of Trustees (BOT)
Appraisal Standards Board (ASB)
Appraiser Qualifications Board (AQB)
USPAP - answerThe Uniform Standards of Professional Appraisal Practice (USPAP)
was developed by the Ad Hoc Committee in 1986 and 1987 and was copyrighted in
1987 by The Appraisal Foundation.
At its first meeting in 1989, the Appraisal Standards Board (ASB) adopted USPAP as
the governing document. USPAP may be amended, interpreted, supplemented, or
retired only by the ASB.
There was a realization that even though there are different disciplines, such as
appraisal review, mass appraisal, and appraisal of personal property and businesses,
they all belong to the appraisal profession. Therefore, all these disciplines were included
in USPAP.
Appraisal Foundation: Legal Authority - answerThe Appraisal Foundation is a private
entity and has no enforcement authority in any jurisdiction. The appraisal standards and
qualification criteria that are published by The Appraisal Foundation achieve legal
authority by adoption, citation or implementation by government agencies with the
power to regulate or administer policy. Private industry may also adopt and enforce
these policies through private contracts with appraisers.
True or False? The Board of Trustees acts as the executive board for The Appraisal
Foundation. - answerTrue
True or False? The Appraisal Foundation has significant legal authority to enforce
USPAP. - answerFalse: The Appraisal Foundation achieves legal authority by adoption,
citation or implementation by government agencies with the power to regulate or
administer policy.
When did the first groups of organized appraisers appear in the U.S.? - answerThe
1930's
The Appraisal Standards Board (ASB) - answerThe Appraisal Standards Board
exercises all authority and power over the subject, style, content, and substance of
USPAP and its other communications and performs all functions of the Foundation and
the Board of Trustees with respect to establishing, improving, and promulgating the
, Uniform Standards of Professional Appraisal Practice (USPAP). The ASB develops,
interprets and amends USPAP.
Who retains final authority over revisions to USPAP? - answerThe Appraisal Standards
Board
True or False? Valuation Advisories, issued by The Appraisal Foundation, provide
guidance that is binding on real property appraisers. - answerFalse
Which TAF advisory council consists of for-profit entities? - answerIAC
True or False? The requirements of USPAP apply equally to appraisers and their
clients. - answerFalse: The requirements set forth in USPAP apply only to appraisers.
USPAP does not establish standards for other entities, such as clients, intended users,
or appraisal management companies.
Appraisal Subcommittee (ASC) - answeris a federal government entity and has
significant enforcement authority. The Appraisal Subcommittee was created under
Section 1103 of Title XI of FIRREA with the following stated duties:
Monitor the requirements established by states for the certification and licensing of
individuals who are qualified to perform appraisals in connection with federally related
transactions, including a code of professional responsibilities.
Monitor the requirements established by the Federal financial institutions' regulatory
agencies. Maintain a national registry of state certified and licensed appraisers who are
eligible to perform appraisals in federally related transactions Transmit an annual report
to Congress Monitor and review the practices, procedures, activities and organizational
structure of The Appraisal Foundation
The state regulatory agency for California appraisers is called the? - answerBureau of
Real Estate Appraisers
Fair Housing Act - answerThe federal law that prohibits discrimination in housing based
on race, color, religion, sex, handicap, familial status, and national origin
Equal Credit Opportunity Act - answerThe Equal Credit Opportunity Act applies to all
types of lending, including home mortgages, credit cards, and business loans. It is
implemented through the Fed's Regulation B.
A creditor is defined as anyone who is potentially involved in the credit process. This
includes appraisers and secondary mortgage participants.
A credit transaction includes an application for or extension of credit.
These definitions clarify that an appraiser is involved in the credit process for purposes
of ECOA.
ECOA applies to the appraisal of all dwellings including:
One to four units
Condominiums
Co-ops
Appraiser - answer One who is expected to perform valuation services competently and
in a manner that is independent, impartial, and objective.
Appraisal Report - answer A report is defined in USPAP as: any communication, written
or oral, of an appraisal or appraisal review that is transmitted to the client or a party
authorized by the client upon completion of an assignment.
Narrative Appraisal Report - answer A written communication of the results of a
valuation or review assignment presented to the client in narrative style rather than on a
form or orally.
What are the components of the Real Property Appraiser Qualification Criteria? -
answer1. Qualifying Education
2. Experience
3. Examinations
4. Continuing Education
Continuing Education - answer The continuing education requirement is fourteen
classroom hours each year. As part of the overall fourteen-hour requirement, you must
complete the 7-Hour National USPAP Update Course or its equivalent every two
calendar years. Aside from complying with the requirements to complete the 7-Hour
National USPAP Update Course, or its equivalent, appraisers may not receive credit for
completion of the same continuing education course offering within an appraiser's
continuing education cycle.
Credit towards the continuing education hour requirements for each appraiser
classification may be granted only where the length of the educational offering is at least
two (2) hours.
Examination - answerTo become a State Licensed Residential, State Certified
Residential, or State Certified General appraiser, you must pass a comprehensive
uniform examination developed by the AQB, which is administered by a testing
contractor in your state. Of course, the exams differ based on the level of licensure or
certification an applicant is attempting to obtain.
Experience - answerBefore becoming licensed or certified as an appraiser, an individual
must accumulate a minimum number of appraisal experience hours as an appraiser
trainee (or equivalent).
True or False: Every State's Appraiser certification examination is different -
answerFalse: The AQB adopted new uniform State Appraiser Examinations in 2008. A
,small number of states choose to ad additional state-specific questions, but that does
not mean the exams are different in all states.
A Licensed or certified appraiser must take the 7-hour USPAP Update course Every
______ Years. - answerEvery 2 years.
The requirements for state licensed and certified appraisers had their genesis
in________. - answerFIRREA- Financial Institutions Reform, Recovery, and
Enforcement Act
True or False: An Applicant for Certified General appraiser must posses at least an
associate's degree from an accredited college or university. - answerFalse- Applicant for
Certified General must possess a Bachelor's degree.
If you have specific questions about appraisal certification or licensure requirements in
your state, you should: - answercontact the appraiser licensing and certification agency
in your state
For licensed and certified real property appraisers, _____ class hours of continuing
education are required each year. - answer14
The number of required classroom education hours for Licensed Residential Appraisers
under the 2018 AQB Criteria is ____ hours - answer150
The number of required classroom education hours for Certified Residential Appraisers
under the 2018 AQB Criteria is ____ hours. - answer200
The four components of the Appraiser Qualification Criteria include Continuing
Education, Examination, ____________, and ______________. - answerExperience
and Qualifying Education
To apply for an Appraiser Trainee license, an applicant must have _____ hours of
qualifying education courses and ______ creditable hours of experience. - answer75, 0
The current AQB experience requirement for Licensed Residential Real Property
Appraiser applicants is - answer1,000 hours in no less than 6 months
Which of the following situations would NOT normally require an appraisal? - answerlife
insurance
Who is responsible for approving education courses for licensing, certification, and re-
certification of appraisers? - answerIndividual states
The _____ is charged with establishing the qualifications that all the states must adopt
in licensing, certification and re-certification of appraisers. - answerAQB
,The Appraisal Foundation - answerThe Appraisal Foundation is a not-for-profit
organization, established exclusively for educational and scientific purposes. It is not a
professional appraisal organization or society. Membership in The Appraisal Foundation
is reserved for organizations; an individual appraiser cannot join TAF as a member.
After The Appraisal Foundation was formed, the Uniform Standards of Professional
Appraisal Practice was formally adopted by the Appraisal Standards Board (ASB) in
January 1989.
Today, The Appraisal Foundation has three principal boards:
Board of Trustees (BOT)
Appraisal Standards Board (ASB)
Appraiser Qualifications Board (AQB)
USPAP - answerThe Uniform Standards of Professional Appraisal Practice (USPAP)
was developed by the Ad Hoc Committee in 1986 and 1987 and was copyrighted in
1987 by The Appraisal Foundation.
At its first meeting in 1989, the Appraisal Standards Board (ASB) adopted USPAP as
the governing document. USPAP may be amended, interpreted, supplemented, or
retired only by the ASB.
There was a realization that even though there are different disciplines, such as
appraisal review, mass appraisal, and appraisal of personal property and businesses,
they all belong to the appraisal profession. Therefore, all these disciplines were included
in USPAP.
Appraisal Foundation: Legal Authority - answerThe Appraisal Foundation is a private
entity and has no enforcement authority in any jurisdiction. The appraisal standards and
qualification criteria that are published by The Appraisal Foundation achieve legal
authority by adoption, citation or implementation by government agencies with the
power to regulate or administer policy. Private industry may also adopt and enforce
these policies through private contracts with appraisers.
True or False? The Board of Trustees acts as the executive board for The Appraisal
Foundation. - answerTrue
True or False? The Appraisal Foundation has significant legal authority to enforce
USPAP. - answerFalse: The Appraisal Foundation achieves legal authority by adoption,
citation or implementation by government agencies with the power to regulate or
administer policy.
When did the first groups of organized appraisers appear in the U.S.? - answerThe
1930's
The Appraisal Standards Board (ASB) - answerThe Appraisal Standards Board
exercises all authority and power over the subject, style, content, and substance of
USPAP and its other communications and performs all functions of the Foundation and
the Board of Trustees with respect to establishing, improving, and promulgating the
, Uniform Standards of Professional Appraisal Practice (USPAP). The ASB develops,
interprets and amends USPAP.
Who retains final authority over revisions to USPAP? - answerThe Appraisal Standards
Board
True or False? Valuation Advisories, issued by The Appraisal Foundation, provide
guidance that is binding on real property appraisers. - answerFalse
Which TAF advisory council consists of for-profit entities? - answerIAC
True or False? The requirements of USPAP apply equally to appraisers and their
clients. - answerFalse: The requirements set forth in USPAP apply only to appraisers.
USPAP does not establish standards for other entities, such as clients, intended users,
or appraisal management companies.
Appraisal Subcommittee (ASC) - answeris a federal government entity and has
significant enforcement authority. The Appraisal Subcommittee was created under
Section 1103 of Title XI of FIRREA with the following stated duties:
Monitor the requirements established by states for the certification and licensing of
individuals who are qualified to perform appraisals in connection with federally related
transactions, including a code of professional responsibilities.
Monitor the requirements established by the Federal financial institutions' regulatory
agencies. Maintain a national registry of state certified and licensed appraisers who are
eligible to perform appraisals in federally related transactions Transmit an annual report
to Congress Monitor and review the practices, procedures, activities and organizational
structure of The Appraisal Foundation
The state regulatory agency for California appraisers is called the? - answerBureau of
Real Estate Appraisers
Fair Housing Act - answerThe federal law that prohibits discrimination in housing based
on race, color, religion, sex, handicap, familial status, and national origin
Equal Credit Opportunity Act - answerThe Equal Credit Opportunity Act applies to all
types of lending, including home mortgages, credit cards, and business loans. It is
implemented through the Fed's Regulation B.
A creditor is defined as anyone who is potentially involved in the credit process. This
includes appraisers and secondary mortgage participants.
A credit transaction includes an application for or extension of credit.
These definitions clarify that an appraiser is involved in the credit process for purposes
of ECOA.
ECOA applies to the appraisal of all dwellings including:
One to four units
Condominiums
Co-ops
