PA Appraisers License 2026
EXAM COMPLETE QUESTIONS
WITH CORRECT DETAILED
ANSWERS
Section 1: USPAP (Uniform Standards of Professional Appraisal Practice)
1. What is the purpose of the ETHICS RULE in USPAP?
A) To ensure appraisers use the correct valuation methods.
B) To promote and preserve the public trust by establishing requirements for integrity,
objectivity, and independent judgment.
C) To dictate the minimum content of an appraisal report.
D) To set mandatory fees for appraisal services.
Answer: B
Explanation: The Ethics Rule is the cornerstone of USPAP, focusing on the appraiser's ethical
obligations, including conduct, management, and confidentiality, to maintain public trust.
2. According to the JURISDICTIONAL EXCEPTION RULE, an appraiser must:
A) Always comply with every part of USPAP.
B) Disclose any part of USPAP that is contradicted by jurisdictional law.
C) Ignore state laws if they conflict with USPAP.
D) Only follow USPAP if the client requests it.
Answer: B
Explanation: If a specific law or regulation in a jurisdiction (like Pennsylvania) contradicts a
USPAP provision, the appraiser must comply with the law and disclose the exemption in the
assignment.
3. The RECORD KEEPING RULE requires an appraiser to retain a workfile for at least:
A) 2 years after preparation or 5 years after final disposition of any judicial proceeding.
B) 5 years after preparation or at least 2 years after final disposition of any judicial proceeding.
,C) 3 years after the report is delivered.
D) 7 years, mirroring IRS requirements.
Answer: B
Explanation: The workfile must be retained for a minimum of 5 years after preparation or for at
least 2 years after the final disposition of any judicial proceeding in which the appraiser provided
testimony, whichever period expires last.
4. An assignment with a hypothetical condition requires that the appraiser:
A) Ignore the condition if it is not realistic.
B) Use it only in a retrospective appraisal.
C) Clearly identify and disclose the condition and analyze its effect on the value opinion.
D) Only use it if the client gives verbal permission.
Answer: C
Explanation: A hypothetical condition assumes a condition that is contrary to what is known by
the appraiser to exist on the effective date of the assignment. Its use must be clearly disclosed
and its impact analyzed.
5. What is the primary difference between an Appraisal Report and a Restricted Appraisal
Report?
A) The intended use of the report.
B) The fee charged for the report.
C) The level of detail and information presented; a Restricted Appraisal Report has minimal
content and is for the client only.
D) The signature requirements.
Answer: C
Explanation: A Restricted Appraisal Report contains the minimum content required by USPAP
and is intended only for the client. Its use is restricted because other users may not be able to
understand it without the appraiser's workfile.
6. The "Scope of Work" in an appraisal assignment includes:
A) Only the inspections performed.
B) The extent of the process of collecting, confirming, and reporting data.
C) The final value conclusion.
D) The client's intended use.
Answer: B
Explanation: The Scope of Work is the type and extent of research and analyses performed in an
,assignment. It includes the data collected, the methods employed, and the extent of the
investigations.
7. An extraordinary assumption is:
A) A condition that is contrary to what exists but is supposed for the purpose of analysis.
B) An assumption that is always required for a credible assignment.
C) An assignment condition that is directly based on the client's instructions.
D) An assumption, as of the effective date, which if found to be false, could alter the appraiser's
opinions or conclusions.
Answer: D
Explanation: An extraordinary assumption is an assumption made about a property condition
that is uncertain at the time of the appraisal. If this assumption were proven false, it would
change the appraiser's value conclusion.
8. Which of the following is a violation of the MANAGEMENT section of the Ethics Rule?
A) Accepting an assignment with a predetermined value.
B) Failing to properly supervise an assistant who collects data.
C) Using the Sales Comparison Approach in a residential appraisal.
D) Charging a fee based on a percentage of the appraised value.
Answer: B
Explanation: The Management section of the Ethics Rule requires an appraiser to properly
supervise any person who assists in the assignment. Failure to do so is a violation. Option A and
D are violations of the Conduct section.
9. The COMPETENCY RULE requires that an appraiser, before accepting an assignment, must:
A) Have completed a similar assignment in the last 6 months.
B) Be certified by the state in which the property is located.
C) Identify the problem to be solved and have the knowledge and experience to complete the
assignment competently, or disclose the need to take necessary steps to become competent.
D) Always work with a more experienced appraiser.
Answer: C
Explanation: Competency is about having the necessary knowledge and experience for the
specific assignment. If an appraiser lacks it, they must disclose this to the client and take steps
(e.g., bring in an expert, research) to perform the assignment competently.
10. In a real property appraisal, the "client" is:
A) The party who pays the appraiser's fee.
B) The owner of the property.
, C) The party or parties who engage the appraiser in a specific assignment.
D) The intended user of the appraisal report.
Answer: C
Explanation: The client is specifically the party (or parties) who engages the appraiser. The payer
of the fee and the intended user may be different parties.
Section 2: Real Property Principles & Concepts
11. The four agents of production in real estate are:
A) Land, Labor, Capital, and Entrepreneurship.
B) Supply, Demand, Utility, and Transferability.
C) Location, Improvements, Market, and Value.
D) Physical, Economic, Social, and Political.
Answer: A
Explanation: In appraisal theory, the four agents required to produce value are Land, Labor,
Capital, and Entrepreneurship. The balance of these agents contributes to the property's value.
12. The principle that states value is created by the expectation of future benefits is:
A) Principle of Anticipation.
B) Principle of Substitution.
C) Principle of Contribution.
D) Principle of Change.
Answer: A
Explanation: The Principle of Anticipation states that value is the present worth of the future
benefits (such as income or utility) arising from the ownership of a property.
13. The highest and best use of a property must be:
A) The current use of the property.
B) The most profitable use imaginable.
C) Legally permissible, physically possible, financially feasible, and maximally productive.
D) Determined by the local zoning board.
Answer: C
Explanation: A property's highest and best use is the reasonably probable and legal use that is
physically possible, appropriately supported, financially feasible, and that results in the highest
value.
EXAM COMPLETE QUESTIONS
WITH CORRECT DETAILED
ANSWERS
Section 1: USPAP (Uniform Standards of Professional Appraisal Practice)
1. What is the purpose of the ETHICS RULE in USPAP?
A) To ensure appraisers use the correct valuation methods.
B) To promote and preserve the public trust by establishing requirements for integrity,
objectivity, and independent judgment.
C) To dictate the minimum content of an appraisal report.
D) To set mandatory fees for appraisal services.
Answer: B
Explanation: The Ethics Rule is the cornerstone of USPAP, focusing on the appraiser's ethical
obligations, including conduct, management, and confidentiality, to maintain public trust.
2. According to the JURISDICTIONAL EXCEPTION RULE, an appraiser must:
A) Always comply with every part of USPAP.
B) Disclose any part of USPAP that is contradicted by jurisdictional law.
C) Ignore state laws if they conflict with USPAP.
D) Only follow USPAP if the client requests it.
Answer: B
Explanation: If a specific law or regulation in a jurisdiction (like Pennsylvania) contradicts a
USPAP provision, the appraiser must comply with the law and disclose the exemption in the
assignment.
3. The RECORD KEEPING RULE requires an appraiser to retain a workfile for at least:
A) 2 years after preparation or 5 years after final disposition of any judicial proceeding.
B) 5 years after preparation or at least 2 years after final disposition of any judicial proceeding.
,C) 3 years after the report is delivered.
D) 7 years, mirroring IRS requirements.
Answer: B
Explanation: The workfile must be retained for a minimum of 5 years after preparation or for at
least 2 years after the final disposition of any judicial proceeding in which the appraiser provided
testimony, whichever period expires last.
4. An assignment with a hypothetical condition requires that the appraiser:
A) Ignore the condition if it is not realistic.
B) Use it only in a retrospective appraisal.
C) Clearly identify and disclose the condition and analyze its effect on the value opinion.
D) Only use it if the client gives verbal permission.
Answer: C
Explanation: A hypothetical condition assumes a condition that is contrary to what is known by
the appraiser to exist on the effective date of the assignment. Its use must be clearly disclosed
and its impact analyzed.
5. What is the primary difference between an Appraisal Report and a Restricted Appraisal
Report?
A) The intended use of the report.
B) The fee charged for the report.
C) The level of detail and information presented; a Restricted Appraisal Report has minimal
content and is for the client only.
D) The signature requirements.
Answer: C
Explanation: A Restricted Appraisal Report contains the minimum content required by USPAP
and is intended only for the client. Its use is restricted because other users may not be able to
understand it without the appraiser's workfile.
6. The "Scope of Work" in an appraisal assignment includes:
A) Only the inspections performed.
B) The extent of the process of collecting, confirming, and reporting data.
C) The final value conclusion.
D) The client's intended use.
Answer: B
Explanation: The Scope of Work is the type and extent of research and analyses performed in an
,assignment. It includes the data collected, the methods employed, and the extent of the
investigations.
7. An extraordinary assumption is:
A) A condition that is contrary to what exists but is supposed for the purpose of analysis.
B) An assumption that is always required for a credible assignment.
C) An assignment condition that is directly based on the client's instructions.
D) An assumption, as of the effective date, which if found to be false, could alter the appraiser's
opinions or conclusions.
Answer: D
Explanation: An extraordinary assumption is an assumption made about a property condition
that is uncertain at the time of the appraisal. If this assumption were proven false, it would
change the appraiser's value conclusion.
8. Which of the following is a violation of the MANAGEMENT section of the Ethics Rule?
A) Accepting an assignment with a predetermined value.
B) Failing to properly supervise an assistant who collects data.
C) Using the Sales Comparison Approach in a residential appraisal.
D) Charging a fee based on a percentage of the appraised value.
Answer: B
Explanation: The Management section of the Ethics Rule requires an appraiser to properly
supervise any person who assists in the assignment. Failure to do so is a violation. Option A and
D are violations of the Conduct section.
9. The COMPETENCY RULE requires that an appraiser, before accepting an assignment, must:
A) Have completed a similar assignment in the last 6 months.
B) Be certified by the state in which the property is located.
C) Identify the problem to be solved and have the knowledge and experience to complete the
assignment competently, or disclose the need to take necessary steps to become competent.
D) Always work with a more experienced appraiser.
Answer: C
Explanation: Competency is about having the necessary knowledge and experience for the
specific assignment. If an appraiser lacks it, they must disclose this to the client and take steps
(e.g., bring in an expert, research) to perform the assignment competently.
10. In a real property appraisal, the "client" is:
A) The party who pays the appraiser's fee.
B) The owner of the property.
, C) The party or parties who engage the appraiser in a specific assignment.
D) The intended user of the appraisal report.
Answer: C
Explanation: The client is specifically the party (or parties) who engages the appraiser. The payer
of the fee and the intended user may be different parties.
Section 2: Real Property Principles & Concepts
11. The four agents of production in real estate are:
A) Land, Labor, Capital, and Entrepreneurship.
B) Supply, Demand, Utility, and Transferability.
C) Location, Improvements, Market, and Value.
D) Physical, Economic, Social, and Political.
Answer: A
Explanation: In appraisal theory, the four agents required to produce value are Land, Labor,
Capital, and Entrepreneurship. The balance of these agents contributes to the property's value.
12. The principle that states value is created by the expectation of future benefits is:
A) Principle of Anticipation.
B) Principle of Substitution.
C) Principle of Contribution.
D) Principle of Change.
Answer: A
Explanation: The Principle of Anticipation states that value is the present worth of the future
benefits (such as income or utility) arising from the ownership of a property.
13. The highest and best use of a property must be:
A) The current use of the property.
B) The most profitable use imaginable.
C) Legally permissible, physically possible, financially feasible, and maximally productive.
D) Determined by the local zoning board.
Answer: C
Explanation: A property's highest and best use is the reasonably probable and legal use that is
physically possible, appropriately supported, financially feasible, and that results in the highest
value.
