MCKISSOCK BASIC APPRAISAL PRINCIPLES 1 FINAL EXAM 2025/2026 ACTUAL
EXAM 300+ QUESTIONS AND CORRECT DETAILED ANSWERS
Question 1
An appraiser paid a referral fee in conjunction with an appraisal assignment. Which statement is
TRUE regarding this situation, according to USPAP?
A) The appraiser must disclose the amount paid in the report.
B) The appraiser must disclose that a fee was paid, but does not have to disclose the amount
paid.
C) Referral fees are strictly prohibited under all circumstances.
D) The fee must only be disclosed if it exceeds $100.
E) The fee must only be disclosed to the state licensing board, not the client.
Correct Answer: B) The appraiser must disclose that a fee was paid, but does not have to
disclose the amount paid.
Rationale: According to the USPAP Management Section of the ETHICS RULE, an
appraiser must disclose the payment of a fee, commission, or thing of value connected to
the procurement of an assignment, but the specific dollar amount is not required to be
disclosed.
Question 2
An appraiser finds out after completing an appraisal that the lender/client's loan did not close.
What should the appraiser do regarding the appraisal fee?
A) Refund the fee to the client.
B) Reduce the fee by 50% since the loan failed.
C) Charge the agreed-upon fee regardless of whether the loan closed.
D) Wait until the property is sold to a different buyer to collect the fee.
E) Only charge for the cost of the software used.
Correct Answer: C) Charge the agreed-upon fee regardless of whether the loan closed.
Rationale: Appraisal fees are based on the work performed and the expertise provided, not
on the outcome of a financial transaction. Charging based on whether a loan closes is a
violation of the ETHICS RULE.
Question 3
An appraiser finds that the pending sale price of a subject residential property is not supported by
market data. To avoid causing a problem for the buyer and seller, the appraiser reconciles the
value conclusion to meet the sale price anyway. Which statement is true?
A) This is acceptable as it facilitates the transaction.
B) This is a standard practice in "advocacy" appraisal.
C) The appraiser has violated his ethical obligations by doing this.
D) This is allowed if the client provides a written request to meet the price.
E) This is allowed if the difference is less than 10%.
Correct Answer: C) The appraiser has violated his ethical obligations by doing this.
Rationale: An appraiser must be impartial, objective, and independent. Intentionally
, 2
"hitting a number" to favor a transaction is a violation of the USPAP ETHICS RULE
regarding conduct.
Question 4
An appraiser accepts an assignment and agrees to a client's request to select and use only the data
that supports the pending contract sale price. Which statement is TRUE?
A) This is a common way to ensure client satisfaction.
B) This is permissible as long as the appraiser states it in the report.
C) This is a violation of the USPAP ETHICS RULE.
D) This is acceptable only in rural markets with limited data.
E) This is acceptable if the appraiser is paid a flat fee.
Correct Answer: C) The appraiser has violated the ETHICS RULE by doing this.
Rationale: Selecting data specifically to support a predetermined result (cherry-picking) is a
violation of the requirement to perform assignments without bias or favoritism.
Question 5
Appraiser Amy agrees to pay a fee to be included on Lender B's "approved appraiser" list. Which
statement is TRUE regarding this situation?
A) This is a prohibited kickback under USPAP.
B) This is permissible under USPAP as long as it is disclosed.
C) This is only allowed if Amy is a Certified General appraiser.
D) Amy must disclose the exact dollar amount of the fee in every report.
E) This is permissible only if the fee is paid by the borrower.
Correct Answer: B) This is permissible under USPAP as long as it is disclosed.
Rationale: Paying a fee to be on an approved list is considered a cost of procurement. Under
the ETHICS RULE, such fees are allowed provided they are disclosed in the report
certification.
Question 6
The fact that an appraiser has previously appraised a specific property is:
A) Confidential information that can never be shared.
B) Not confidential information, and can be disclosed.
C) Only disclosable if the previous client gives written permission.
D) Disclosable only to the IRS.
E) Only disclosable if the property is a commercial building.
Correct Answer: B) Not confidential information, and can be disclosed.
Rationale: USPAP requires appraisers to disclose any services they performed regarding the
subject property within the three years prior to the date of acceptance. The fact that the
property was appraised is not "confidential" as defined by USPAP.
EXAM 300+ QUESTIONS AND CORRECT DETAILED ANSWERS
Question 1
An appraiser paid a referral fee in conjunction with an appraisal assignment. Which statement is
TRUE regarding this situation, according to USPAP?
A) The appraiser must disclose the amount paid in the report.
B) The appraiser must disclose that a fee was paid, but does not have to disclose the amount
paid.
C) Referral fees are strictly prohibited under all circumstances.
D) The fee must only be disclosed if it exceeds $100.
E) The fee must only be disclosed to the state licensing board, not the client.
Correct Answer: B) The appraiser must disclose that a fee was paid, but does not have to
disclose the amount paid.
Rationale: According to the USPAP Management Section of the ETHICS RULE, an
appraiser must disclose the payment of a fee, commission, or thing of value connected to
the procurement of an assignment, but the specific dollar amount is not required to be
disclosed.
Question 2
An appraiser finds out after completing an appraisal that the lender/client's loan did not close.
What should the appraiser do regarding the appraisal fee?
A) Refund the fee to the client.
B) Reduce the fee by 50% since the loan failed.
C) Charge the agreed-upon fee regardless of whether the loan closed.
D) Wait until the property is sold to a different buyer to collect the fee.
E) Only charge for the cost of the software used.
Correct Answer: C) Charge the agreed-upon fee regardless of whether the loan closed.
Rationale: Appraisal fees are based on the work performed and the expertise provided, not
on the outcome of a financial transaction. Charging based on whether a loan closes is a
violation of the ETHICS RULE.
Question 3
An appraiser finds that the pending sale price of a subject residential property is not supported by
market data. To avoid causing a problem for the buyer and seller, the appraiser reconciles the
value conclusion to meet the sale price anyway. Which statement is true?
A) This is acceptable as it facilitates the transaction.
B) This is a standard practice in "advocacy" appraisal.
C) The appraiser has violated his ethical obligations by doing this.
D) This is allowed if the client provides a written request to meet the price.
E) This is allowed if the difference is less than 10%.
Correct Answer: C) The appraiser has violated his ethical obligations by doing this.
Rationale: An appraiser must be impartial, objective, and independent. Intentionally
, 2
"hitting a number" to favor a transaction is a violation of the USPAP ETHICS RULE
regarding conduct.
Question 4
An appraiser accepts an assignment and agrees to a client's request to select and use only the data
that supports the pending contract sale price. Which statement is TRUE?
A) This is a common way to ensure client satisfaction.
B) This is permissible as long as the appraiser states it in the report.
C) This is a violation of the USPAP ETHICS RULE.
D) This is acceptable only in rural markets with limited data.
E) This is acceptable if the appraiser is paid a flat fee.
Correct Answer: C) The appraiser has violated the ETHICS RULE by doing this.
Rationale: Selecting data specifically to support a predetermined result (cherry-picking) is a
violation of the requirement to perform assignments without bias or favoritism.
Question 5
Appraiser Amy agrees to pay a fee to be included on Lender B's "approved appraiser" list. Which
statement is TRUE regarding this situation?
A) This is a prohibited kickback under USPAP.
B) This is permissible under USPAP as long as it is disclosed.
C) This is only allowed if Amy is a Certified General appraiser.
D) Amy must disclose the exact dollar amount of the fee in every report.
E) This is permissible only if the fee is paid by the borrower.
Correct Answer: B) This is permissible under USPAP as long as it is disclosed.
Rationale: Paying a fee to be on an approved list is considered a cost of procurement. Under
the ETHICS RULE, such fees are allowed provided they are disclosed in the report
certification.
Question 6
The fact that an appraiser has previously appraised a specific property is:
A) Confidential information that can never be shared.
B) Not confidential information, and can be disclosed.
C) Only disclosable if the previous client gives written permission.
D) Disclosable only to the IRS.
E) Only disclosable if the property is a commercial building.
Correct Answer: B) Not confidential information, and can be disclosed.
Rationale: USPAP requires appraisers to disclose any services they performed regarding the
subject property within the three years prior to the date of acceptance. The fact that the
property was appraised is not "confidential" as defined by USPAP.
