USPAP 2025-2026 7 Hour National
USPAP Update Course Test
Questions and Answers
When a word or term is retired from the DEFINITIONS in USPAP, what does it mean? -
Answer-The word or term may still appear in USPAP, and its standard dictionary
definition applies.
The ASB retired the word "misleading" from the DEFINITIONS in USPAP. Why was this
action taken? - Answer-Because its common dictionary definition reflects the way the
term is used in USPAP.
Modified Definitions - Answer-Sometimes, definitions are changed by the ASB to more
accurately refine how a word is used in USPAP. It is not uncommon for words to have
their definitions changed in USPAP as more is learned about how the word is (or is not)
being understood.
For example, the definition of "report" has changed eleven times since the word was
first defined in 1987.
In other cases, changes to definitions reflect either actual concept changes in USPAP,
or a need to better define the concept.
For 2024, three definitions in USPAP were modified. All three of these definitions were
modified to better clarify exactly how USPAP uses the word or term.
Definition of Appraiser - Answer-rom the year 2000 until 2020, the USPAP definition of
appraiser was as follows:
APPRAISER: one who is expected to perform valuation services competently and in a
manner that is independent, impartial, and objective.
Comment: Such expectation occurs when individuals, either by choice or by
requirement placed upon them or upon the service they provide by law, regulation, or
agreement with the client or intended users, represent that they comply.
As a result of the latest modification, this has been restored as the definition of
appraiser in the 2024 USPAP.
In the 2020-2021 USPAP, the Comment was deleted in an effort streamline the
definition. However, the deletion resulted in some confusion about exactly where the
"expectation" referred to in the Comment comes from, thus, the Comment has been
returned to the definition.
Appraisers and other stakeholders' comments pointed out the need for the Comment to
be included in the definition as it emphasized a key point in understanding the
obligations one has under USPAP when acting as an appraiser, and where the
expectation to perform a valuation service competently and in a manner that is
independent, impartial, and objective comes from.
,Key Elements in the Definition - Answer-In USPAP, the holding of a specified credential
(e.g., "Licensed Real Property Appraiser", "Certified Residential Appraiser", etc.) is not
what identifies one as an appraiser.
Rather, within USPAP, it is the expectation of competent and ethical valuation services
that makes one an appraiser. Thus, returning the Comment to the definition makes it
clear that expectation is the basis for determining when an individual providing a
valuation service is acting as an appraiser (i.e., the appraiser will perform a valuation
service competently, independently, impartially, and objectively).
Because appraisers are subject to expectations of competency and ethics, USPAP
applies to all of appraisal practice. The definition of appraiser in conjunction with the
need for public trust establishes the expectation as the basis of the obligation to comply
with USPAP.
Returning the Comment to the definition alleviates the uncertainty about from where the
expectation to act as an appraiser comes.
Acting as an Appraiser - Answer-If an appraiser represents that they are acting as an
appraiser, the intended user of an appraisal (or appraisal review report), has the
expectation that the valuation service would be completed in compliance with USPAP.
For further information, see Advisory Opinion 21, specifically, the section titled "What
are the responsibilities of an appraiser regarding intended user expectations?"
This section of AO-21 appears below for your convenience.
What are the responsibilities of an appraiser regarding intended user expectations?
Appraisers have a professional responsibility to recognize the capacity in which they are
performing. The responsibility includes inquiry about, and recognition of, the intended
users' expectations. When an individual's appraisal expertise and reputation for
providing services without bias induce the client or other intended users to select the
individual to provide a valuation service, there is a justifiable expectation that the
valuation service will be performed in compliance with USPAP. When individuals who
act as an appraiser in some circumstances choose to provide a valuation service in
some other capacity (i.e., not as an appraiser and outside of appraisal practice), they
must not represent themselves to be acting in the capacity of an appraiser. Since choice
is an instrument to create USPAP obligations it follows that when individuals have an
opportunity to choose the capacity in which they will provide a valuation service, they
are free to provide the valuation service as an appraiser or in some other capacity.
However, an individual who is recognized as an appraiser must use great care not to
violate the public trust.
Many individuals, including appraisers, provide valuation services. According to USPAP,
what distinguishes an appraiser from another professional who provides valuation
services? - Answer-The expectation that the individual will perform competently,
independently, impartially, and objectively
An individual who sometimes acts as an appraiser is providing a valuation service in
another capacity. What is this individual's obligation under USPAP? - Answer-They
must not represent themselves as acting in the capacity of an appraiser.
,Definition of Personal Inspection - Answer-The definition of personal inspection was
changed to clarify its meaning in USPAP. A change was necessary as the introduction
of various technologies, and new services such as "hybrid appraisals" have blurred the
line between both what it means for an appraiser to personally inspect a property and
what it means for an appraiser to inspect a property as part of their scope of work.
With remote property "inspecting," clients were noting instances where appraisers were
indicating they made a personal inspection of the subject property. Appraisers and
clients alike wanted a clearer line between what it meant to make a "personal
inspection" of a property.
The definition has, therefore, been modified to the following:
PERSONAL INSPECTION: (for an appraisal assignment) the appraiser's in-person
observation of the subject property performed as part of the scope of work; (for an
appraisal review assignment) the reviewer's in-person observation of the subject of the
work under review, performed as part of the scope of work. a physical observation
performed to assist in identifying relevant property characteristics in a valuation service.
Comment: An appraiser's personal inspection is typically limited to those things readily
observable without the use of special testing or equipment. Appraisals of some types of
property, such as gems and jewelry, may require the use of specialized equipment. A
personal inspection by an appraiser is not the equivalent of an inspection by an
inspection professional (e.g., a structural engineer, home inspector, or art conservator).
Key Elements of the Definition - Answer-The definition is tied directly to the SCOPE OF
WORK RULE.
Only the appraiser can determine and perform the scope of work necessary to develop
credible assignment results (SCOPE OF WORK RULE).
Therefore, only the appraiser can perform a personal inspection, as the term is defined
in USPAP.
The term "personal inspection" is only used one time in USPAP; it is used in one of the
elements required to be disclosed in the certification requirements.
The personal inspection is only the inspection that (if it occurs), occurs as part of the
scope of work for that specific assignment.
Example: Personal Inspection - Answer-An appraiser has been requested to perform an
appraisal on a property in a pre-foreclosure situation. The property is accessed by a
long private driveway and cannot be viewed from the public road. The client requests
that the appraiser not trespass on the property.
The appraiser had previously valued the property three years previously when the
borrower originally applied for the loan. At that time, the appraiser made a personal
interior and exterior inspection of the subject property improvements.
May the appraiser complete the current appraisal assignment and certify in the new
assignment report that they made a personal inspection of the subject property? -
Answer-Answer: No. The revised definition states, "the appraiser's in-person
observation of the subject property performed as part of the scope of work." In this
situation, the prior inspection of the subject property was performed as part of the scope
, of work for the prior appraisal assignment, not the current assignment. The appraiser
might disclose in the report that they previously inspected the property for a prior
assignment, but may not certify that they made a personal inspection as part of the
scope of work for the current assignment.
Personal Inspection: Impact on Practice - Answer-This change will impact day-to-day
appraisal practice for real property appraisers and personal property appraisers, as it
requires the appraiser to know when they have performed a personal inspection, as
defined in USPAP, and then to be able to correctly communicate that information in the
report.
In the example on the previous page, where the appraiser had made a personal
inspection of the subject property three years previously, it would be inappropriate for
the appraiser to certify that they made a personal inspection of the subject property in
the current appraisal report.
Advisory Opinion 2, Inspection of Subject Property, has also been edited to reflect the
revised definition of personal inspection.
Standards Rules 2-3, 4-3, 6-3 and 8-3 all include - Answer-a requirement for a report to
contain a certification statement which addresses having (or not) made a personal
inspection of the subject property (or, for an appraisal review, the property that is the
subject of the work under review).
Advisory Opinion 2 has been updated to offer more guidance on what constitutes a
"personal inspection" by an appraiser. Both USPAP and Advisory Opinion 2 will help to
answer the following question.
I have agreed to appraise a single-unit property and I performed an exterior-only
inspection of the property from the street. What are my reporting obligations for an
Appraisal Report related to this inspection that I performed as a part of the scope of
work? - Answer-An exterior-only inspection performed from the street, where the
appraiser made an in-person observation of the property, is a personal inspection. As
the appraiser signing the certification, you would indicate in the certification that you did
make a personal inspection of the property. Additionally, you are required to disclose
the scope of work used to develop the appraisal, including the extent to which the
property was inspected sufficient to enable the intended users to understand the report
properly.
Standards Rules 2-3, 4-3, 6-3 and 8-3 - Answer-all include a requirement for a report to
contain a certification statement which addresses having (or not) made a personal
inspection of the subject property (or, for an appraisal review, the property that is the
subject of the work under review).
I have agreed to perform an appraisal for a client. The client provided me with a detailed
property inspection report that includes photographs, types of materials, and condition
ratings of those materials by a third-party inspector. Does USPAP allow me to use this
information to develop my opinions and conclusions and what am I required to disclose
USPAP Update Course Test
Questions and Answers
When a word or term is retired from the DEFINITIONS in USPAP, what does it mean? -
Answer-The word or term may still appear in USPAP, and its standard dictionary
definition applies.
The ASB retired the word "misleading" from the DEFINITIONS in USPAP. Why was this
action taken? - Answer-Because its common dictionary definition reflects the way the
term is used in USPAP.
Modified Definitions - Answer-Sometimes, definitions are changed by the ASB to more
accurately refine how a word is used in USPAP. It is not uncommon for words to have
their definitions changed in USPAP as more is learned about how the word is (or is not)
being understood.
For example, the definition of "report" has changed eleven times since the word was
first defined in 1987.
In other cases, changes to definitions reflect either actual concept changes in USPAP,
or a need to better define the concept.
For 2024, three definitions in USPAP were modified. All three of these definitions were
modified to better clarify exactly how USPAP uses the word or term.
Definition of Appraiser - Answer-rom the year 2000 until 2020, the USPAP definition of
appraiser was as follows:
APPRAISER: one who is expected to perform valuation services competently and in a
manner that is independent, impartial, and objective.
Comment: Such expectation occurs when individuals, either by choice or by
requirement placed upon them or upon the service they provide by law, regulation, or
agreement with the client or intended users, represent that they comply.
As a result of the latest modification, this has been restored as the definition of
appraiser in the 2024 USPAP.
In the 2020-2021 USPAP, the Comment was deleted in an effort streamline the
definition. However, the deletion resulted in some confusion about exactly where the
"expectation" referred to in the Comment comes from, thus, the Comment has been
returned to the definition.
Appraisers and other stakeholders' comments pointed out the need for the Comment to
be included in the definition as it emphasized a key point in understanding the
obligations one has under USPAP when acting as an appraiser, and where the
expectation to perform a valuation service competently and in a manner that is
independent, impartial, and objective comes from.
,Key Elements in the Definition - Answer-In USPAP, the holding of a specified credential
(e.g., "Licensed Real Property Appraiser", "Certified Residential Appraiser", etc.) is not
what identifies one as an appraiser.
Rather, within USPAP, it is the expectation of competent and ethical valuation services
that makes one an appraiser. Thus, returning the Comment to the definition makes it
clear that expectation is the basis for determining when an individual providing a
valuation service is acting as an appraiser (i.e., the appraiser will perform a valuation
service competently, independently, impartially, and objectively).
Because appraisers are subject to expectations of competency and ethics, USPAP
applies to all of appraisal practice. The definition of appraiser in conjunction with the
need for public trust establishes the expectation as the basis of the obligation to comply
with USPAP.
Returning the Comment to the definition alleviates the uncertainty about from where the
expectation to act as an appraiser comes.
Acting as an Appraiser - Answer-If an appraiser represents that they are acting as an
appraiser, the intended user of an appraisal (or appraisal review report), has the
expectation that the valuation service would be completed in compliance with USPAP.
For further information, see Advisory Opinion 21, specifically, the section titled "What
are the responsibilities of an appraiser regarding intended user expectations?"
This section of AO-21 appears below for your convenience.
What are the responsibilities of an appraiser regarding intended user expectations?
Appraisers have a professional responsibility to recognize the capacity in which they are
performing. The responsibility includes inquiry about, and recognition of, the intended
users' expectations. When an individual's appraisal expertise and reputation for
providing services without bias induce the client or other intended users to select the
individual to provide a valuation service, there is a justifiable expectation that the
valuation service will be performed in compliance with USPAP. When individuals who
act as an appraiser in some circumstances choose to provide a valuation service in
some other capacity (i.e., not as an appraiser and outside of appraisal practice), they
must not represent themselves to be acting in the capacity of an appraiser. Since choice
is an instrument to create USPAP obligations it follows that when individuals have an
opportunity to choose the capacity in which they will provide a valuation service, they
are free to provide the valuation service as an appraiser or in some other capacity.
However, an individual who is recognized as an appraiser must use great care not to
violate the public trust.
Many individuals, including appraisers, provide valuation services. According to USPAP,
what distinguishes an appraiser from another professional who provides valuation
services? - Answer-The expectation that the individual will perform competently,
independently, impartially, and objectively
An individual who sometimes acts as an appraiser is providing a valuation service in
another capacity. What is this individual's obligation under USPAP? - Answer-They
must not represent themselves as acting in the capacity of an appraiser.
,Definition of Personal Inspection - Answer-The definition of personal inspection was
changed to clarify its meaning in USPAP. A change was necessary as the introduction
of various technologies, and new services such as "hybrid appraisals" have blurred the
line between both what it means for an appraiser to personally inspect a property and
what it means for an appraiser to inspect a property as part of their scope of work.
With remote property "inspecting," clients were noting instances where appraisers were
indicating they made a personal inspection of the subject property. Appraisers and
clients alike wanted a clearer line between what it meant to make a "personal
inspection" of a property.
The definition has, therefore, been modified to the following:
PERSONAL INSPECTION: (for an appraisal assignment) the appraiser's in-person
observation of the subject property performed as part of the scope of work; (for an
appraisal review assignment) the reviewer's in-person observation of the subject of the
work under review, performed as part of the scope of work. a physical observation
performed to assist in identifying relevant property characteristics in a valuation service.
Comment: An appraiser's personal inspection is typically limited to those things readily
observable without the use of special testing or equipment. Appraisals of some types of
property, such as gems and jewelry, may require the use of specialized equipment. A
personal inspection by an appraiser is not the equivalent of an inspection by an
inspection professional (e.g., a structural engineer, home inspector, or art conservator).
Key Elements of the Definition - Answer-The definition is tied directly to the SCOPE OF
WORK RULE.
Only the appraiser can determine and perform the scope of work necessary to develop
credible assignment results (SCOPE OF WORK RULE).
Therefore, only the appraiser can perform a personal inspection, as the term is defined
in USPAP.
The term "personal inspection" is only used one time in USPAP; it is used in one of the
elements required to be disclosed in the certification requirements.
The personal inspection is only the inspection that (if it occurs), occurs as part of the
scope of work for that specific assignment.
Example: Personal Inspection - Answer-An appraiser has been requested to perform an
appraisal on a property in a pre-foreclosure situation. The property is accessed by a
long private driveway and cannot be viewed from the public road. The client requests
that the appraiser not trespass on the property.
The appraiser had previously valued the property three years previously when the
borrower originally applied for the loan. At that time, the appraiser made a personal
interior and exterior inspection of the subject property improvements.
May the appraiser complete the current appraisal assignment and certify in the new
assignment report that they made a personal inspection of the subject property? -
Answer-Answer: No. The revised definition states, "the appraiser's in-person
observation of the subject property performed as part of the scope of work." In this
situation, the prior inspection of the subject property was performed as part of the scope
, of work for the prior appraisal assignment, not the current assignment. The appraiser
might disclose in the report that they previously inspected the property for a prior
assignment, but may not certify that they made a personal inspection as part of the
scope of work for the current assignment.
Personal Inspection: Impact on Practice - Answer-This change will impact day-to-day
appraisal practice for real property appraisers and personal property appraisers, as it
requires the appraiser to know when they have performed a personal inspection, as
defined in USPAP, and then to be able to correctly communicate that information in the
report.
In the example on the previous page, where the appraiser had made a personal
inspection of the subject property three years previously, it would be inappropriate for
the appraiser to certify that they made a personal inspection of the subject property in
the current appraisal report.
Advisory Opinion 2, Inspection of Subject Property, has also been edited to reflect the
revised definition of personal inspection.
Standards Rules 2-3, 4-3, 6-3 and 8-3 all include - Answer-a requirement for a report to
contain a certification statement which addresses having (or not) made a personal
inspection of the subject property (or, for an appraisal review, the property that is the
subject of the work under review).
Advisory Opinion 2 has been updated to offer more guidance on what constitutes a
"personal inspection" by an appraiser. Both USPAP and Advisory Opinion 2 will help to
answer the following question.
I have agreed to appraise a single-unit property and I performed an exterior-only
inspection of the property from the street. What are my reporting obligations for an
Appraisal Report related to this inspection that I performed as a part of the scope of
work? - Answer-An exterior-only inspection performed from the street, where the
appraiser made an in-person observation of the property, is a personal inspection. As
the appraiser signing the certification, you would indicate in the certification that you did
make a personal inspection of the property. Additionally, you are required to disclose
the scope of work used to develop the appraisal, including the extent to which the
property was inspected sufficient to enable the intended users to understand the report
properly.
Standards Rules 2-3, 4-3, 6-3 and 8-3 - Answer-all include a requirement for a report to
contain a certification statement which addresses having (or not) made a personal
inspection of the subject property (or, for an appraisal review, the property that is the
subject of the work under review).
I have agreed to perform an appraisal for a client. The client provided me with a detailed
property inspection report that includes photographs, types of materials, and condition
ratings of those materials by a third-party inspector. Does USPAP allow me to use this
information to develop my opinions and conclusions and what am I required to disclose
