USPAP Exam Questions with Correct Answers| Latest Update Guaranteed Success
What is marketing time? An opinion of the amount of time it might take to sell a property
interest at the concluded market value level during the period immediately after the effective
date of an appraisal
Appraisal The act or process of developing an opinion of value. An opinion of value.
AO-36 identification and disclosure of client, intended use, intended users Personal, real,
business and intangible property. Consider the client, intended users, intended use in order to
identify the problem to be solved and understand development and reporting responsibilities
of the appraiser.
AO-36 the issue What kind of information must the appraiser identify and consider
regarding the intended use and users in the course of accepting abs completing an assignment
and how much info should the appraiser report
AO-36 specific issue to be addressed Identify the client and users through the client without
violating the ETHICS RULE. Must identify the client in the workfile but can omit the clients
identity in the report. Must report the withholding of the clients identity.
AO-36 obligations to the client An appraisers obligations to the client are established in the
course of considering and accepting the assignment. Intended use may change and the
appraiser must make scope of work changes as necessary.
AO-36 obligations to other intended users May impose additional development and
reporting requirements in the assignment. A clear understanding of client and user needs must
be established.
AO-36 disclosure of client and intended users Ensures the client and intended users
recognize their relationship to the report and parties other than intended users will not assume
,they are the client or intended user. "Use of this report is intended for use only by ___ and ___"
or identify the client in the work file, give notice of omission upon clients request in report
AO-36 disclosure of intended use Clearly identify intended use. "This report is intended only
for use in ____. This report is not intended for any other use."
STANDARDS RULE 1-2 d Identify the effective date of the appraisers opinions and
conclusions. Effective date establishes the context of the value opinion. May be retrospective,
current or prospective.
STANDARDS RULE 1-2 e Identify the characteristics of the property that are relevant to the
type and definition of value and intended use of the appraisal: location, physical, legal and
economic attributes, the interest to be valued, personal property, trade fixtures, intangible
items, easements, restrictions, encumbrances, leases, reservations, covenants, contracts,
declarations, special assessments, ordinances, fraction interest, physical segment, partial
holding
STANDARDS RULE 1-2 e comment Subsections i-v...information to identify characteristics
must be from reliable sources. AO-2, AO-17, AO-23
AO-2 inspection of subject property: purpose Real and personal property. Purpose: personal
observations of the appraiser to gather information about the characteristics of the property
that are relevant to its value. Primary source of information.
AO-2 inspection of subject property: minimum level of inspection Inspection not required by
USPAP. Must state if inspected or not. Inspection process is an aspect of scope of work and
varies by conditions and intended use.
AO-2 inspection of subject property: limitations on inspection Can be without an inspection
"desktop appraisal", exterior only, must be adequate to develop credible results. An
extraordinary assumption can be made or the appraiser must withdraw
, AO-2 inspection of subject property: disclosure requirements Signed certification indicating
personal inspection or other, sufficient information to understand extent of inspection, clearly
communicated
AO-17 appraisals of real property with proposed improvements Real property only.
Performing an assignment involving proposed improvements to real property for current or
perspective value opinion are permitted. See AO-34
Current value opinion Effective date of appraisal is the same as date of the report. Involves
at least one hypothetical condition. Standards rule 1-2 g and 2-2 axi and bxi reporting
requirements are included. The property does not yet exist, certain things need to occur for it
to exist and I foreseeable events are not reflected in the valuation
Prospective value appraisal Effective date of appraisal is after the date of the report
AO-23 identifying the relevant characteristics of the subject property of a real property
appraisal assignment Real property only. How does an appraiser determine which
characteristics of a real property are relevant to its appraisal
AO-23 Physical and legal characteristics of real property They define the subject property.
Together with type and definition of value and intended use of assignment results gives the
basis for deciding what data and analysis to include in scope of work.
STANDARDS RULE 1-2 f Identify any extraordinary assumptions necessary in the assignment
STANDARDS RULE 1-2 f comment Extraordinary assumptions may only be used in an
assignment under certain circumstances: if it's required for credible opinions, there is
reasonable basis, use results in credible results, unit complies with USPAP
What is marketing time? An opinion of the amount of time it might take to sell a property
interest at the concluded market value level during the period immediately after the effective
date of an appraisal
Appraisal The act or process of developing an opinion of value. An opinion of value.
AO-36 identification and disclosure of client, intended use, intended users Personal, real,
business and intangible property. Consider the client, intended users, intended use in order to
identify the problem to be solved and understand development and reporting responsibilities
of the appraiser.
AO-36 the issue What kind of information must the appraiser identify and consider
regarding the intended use and users in the course of accepting abs completing an assignment
and how much info should the appraiser report
AO-36 specific issue to be addressed Identify the client and users through the client without
violating the ETHICS RULE. Must identify the client in the workfile but can omit the clients
identity in the report. Must report the withholding of the clients identity.
AO-36 obligations to the client An appraisers obligations to the client are established in the
course of considering and accepting the assignment. Intended use may change and the
appraiser must make scope of work changes as necessary.
AO-36 obligations to other intended users May impose additional development and
reporting requirements in the assignment. A clear understanding of client and user needs must
be established.
AO-36 disclosure of client and intended users Ensures the client and intended users
recognize their relationship to the report and parties other than intended users will not assume
,they are the client or intended user. "Use of this report is intended for use only by ___ and ___"
or identify the client in the work file, give notice of omission upon clients request in report
AO-36 disclosure of intended use Clearly identify intended use. "This report is intended only
for use in ____. This report is not intended for any other use."
STANDARDS RULE 1-2 d Identify the effective date of the appraisers opinions and
conclusions. Effective date establishes the context of the value opinion. May be retrospective,
current or prospective.
STANDARDS RULE 1-2 e Identify the characteristics of the property that are relevant to the
type and definition of value and intended use of the appraisal: location, physical, legal and
economic attributes, the interest to be valued, personal property, trade fixtures, intangible
items, easements, restrictions, encumbrances, leases, reservations, covenants, contracts,
declarations, special assessments, ordinances, fraction interest, physical segment, partial
holding
STANDARDS RULE 1-2 e comment Subsections i-v...information to identify characteristics
must be from reliable sources. AO-2, AO-17, AO-23
AO-2 inspection of subject property: purpose Real and personal property. Purpose: personal
observations of the appraiser to gather information about the characteristics of the property
that are relevant to its value. Primary source of information.
AO-2 inspection of subject property: minimum level of inspection Inspection not required by
USPAP. Must state if inspected or not. Inspection process is an aspect of scope of work and
varies by conditions and intended use.
AO-2 inspection of subject property: limitations on inspection Can be without an inspection
"desktop appraisal", exterior only, must be adequate to develop credible results. An
extraordinary assumption can be made or the appraiser must withdraw
, AO-2 inspection of subject property: disclosure requirements Signed certification indicating
personal inspection or other, sufficient information to understand extent of inspection, clearly
communicated
AO-17 appraisals of real property with proposed improvements Real property only.
Performing an assignment involving proposed improvements to real property for current or
perspective value opinion are permitted. See AO-34
Current value opinion Effective date of appraisal is the same as date of the report. Involves
at least one hypothetical condition. Standards rule 1-2 g and 2-2 axi and bxi reporting
requirements are included. The property does not yet exist, certain things need to occur for it
to exist and I foreseeable events are not reflected in the valuation
Prospective value appraisal Effective date of appraisal is after the date of the report
AO-23 identifying the relevant characteristics of the subject property of a real property
appraisal assignment Real property only. How does an appraiser determine which
characteristics of a real property are relevant to its appraisal
AO-23 Physical and legal characteristics of real property They define the subject property.
Together with type and definition of value and intended use of assignment results gives the
basis for deciding what data and analysis to include in scope of work.
STANDARDS RULE 1-2 f Identify any extraordinary assumptions necessary in the assignment
STANDARDS RULE 1-2 f comment Extraordinary assumptions may only be used in an
assignment under certain circumstances: if it's required for credible opinions, there is
reasonable basis, use results in credible results, unit complies with USPAP
