PASS THE PA APPRAISER LICENSE EXAM WITH 120
CORRECT QUESTIONS AND ANSWERS
Exam
**1. An appraiser is asked to appraise a property for a mortgage refinance. The
client asks the appraiser to "come in at $250,000" because the homeowner
needs that amount to avoid PMI. The appraiser determines the value is actually
$235,000. According to USPAP, what must the appraiser do?**
- A) Report the value at $250,000 to keep the client happy, but note the
discrepancy in the addendum.
- B) Decline the assignment and report the client to the state board.
- C) Appraise the property at the objectively derived $235,000 and do not agree
to the client's requested value.
- D) Split the difference and appraise it at $242,500.
**Answer: C**
*Rationale:* USPAP's Ethics Rule strictly prohibits appraisers from accepting
assignments based on a predetermined value. The appraiser must develop an
independent opinion and cannot agree to hit a specific number.
---
**2. An appraiser completes a report for a lender. Two years later, the
homeowner sues the appraiser, claiming the appraiser missed a foundation
defect that dropped the value. The appraiser wants to destroy the workfile to
save storage space. Can they?**
- A) Yes, because the assignment is complete.
- B) Yes, but only if they scan the report into a PDF first.
,- C) No, USPAP requires appraisers to retain workfiles for at least 5 years after
preparation, or 2 years after final disposition of any judicial proceeding,
whichever is later.
- D) No, workfiles must be kept for 7 years under federal law.
**Answer: C**
*Rationale:* USPAP Record Keeping Rule states a 5-year retention period from
preparation, or 2 years after the conclusion of a court proceeding if the
appraiser is aware of it—whichever is *later*.
---
**3. Which of the following is an example of a violation of the Confidentiality
section of the Ethics Rule?**
- A) Discussing the subject property's square footage with a contractor during
the inspection.
- B) Sharing the final value opinion with a secondary market investor who is not
the client, without the client's permission.
- C) Discussing the local market trends with another appraiser at a networking
event.
- D) Providing the client with the report in PDF format.
**Answer: B**
*Rationale:* The appraiser must not disclose confidential information
(including the value opinion) to anyone other than the client, except with client
permission or as required by law.
---
,**4. What is the PRIMARY purpose of the Scope of Work Rule?**
- A) To ensure the appraiser makes as much money as possible on the
assignment.
- B) To ensure the appraiser's work is credible and compliant, based on the
intended use and user.
- C) To force appraisers to use all three approaches to value on every
assignment.
- D) To eliminate the need for an appraisal report.
**Answer: B**
*Rationale:* The Scope of Work Rule requires that the scope be sufficient to
produce credible results for the intended use, and that the appraiser properly
identifies the problem to be solved.
---
**5. An appraiser receives an assignment to appraise a single-family home. The
client asks for an "Appraisal Report" (Summary format) rather than a
"Restricted Appraisal Report." Which of the following is TRUE?**
- A) The appraiser must use the Cost Approach.
- B) The appraiser must include a signed certification.
- C) The appraiser does not need to state the effective date of the appraisal.
- D) The appraiser can omit the definition of market value.
**Answer: B**
*Rationale:* Under Standards Rule 2-2(a)(x), every Appraisal Report must
contain a signed certification. The effective date and value definition are always
required in any report.
, ---
**6. According to USPAP, which of the following is a required component of the
certification?**
- A) The appraiser's Social Security number.
- B) A statement that the appraiser has no bias regarding the subject property.
- C) A guarantee that the property will sell for the appraised value within 6
months.
- D) The appraiser's favorite valuation method.
**Answer: B**
*Rationale:* The certification requires the appraiser to state that they have no
present or prospective interest in the property, and that they performed the
analysis objectively without bias.
---
**7. If an appraiser is completing a retrospective appraisal (effective date is 3
years ago), what must they consider?**
- A) Current market conditions as of the date of the report.
- B) Market conditions that existed as of the effective date (3 years ago).
- C) The future potential of the property.
- D) Only the cost to rebuild the structure today.
**Answer: B**
*Rationale:* The effective date dictates the market conditions, data, and
knowledge the appraiser must use. For a retrospective appraisal, the appraiser
must use data available *as of that past date*.
CORRECT QUESTIONS AND ANSWERS
Exam
**1. An appraiser is asked to appraise a property for a mortgage refinance. The
client asks the appraiser to "come in at $250,000" because the homeowner
needs that amount to avoid PMI. The appraiser determines the value is actually
$235,000. According to USPAP, what must the appraiser do?**
- A) Report the value at $250,000 to keep the client happy, but note the
discrepancy in the addendum.
- B) Decline the assignment and report the client to the state board.
- C) Appraise the property at the objectively derived $235,000 and do not agree
to the client's requested value.
- D) Split the difference and appraise it at $242,500.
**Answer: C**
*Rationale:* USPAP's Ethics Rule strictly prohibits appraisers from accepting
assignments based on a predetermined value. The appraiser must develop an
independent opinion and cannot agree to hit a specific number.
---
**2. An appraiser completes a report for a lender. Two years later, the
homeowner sues the appraiser, claiming the appraiser missed a foundation
defect that dropped the value. The appraiser wants to destroy the workfile to
save storage space. Can they?**
- A) Yes, because the assignment is complete.
- B) Yes, but only if they scan the report into a PDF first.
,- C) No, USPAP requires appraisers to retain workfiles for at least 5 years after
preparation, or 2 years after final disposition of any judicial proceeding,
whichever is later.
- D) No, workfiles must be kept for 7 years under federal law.
**Answer: C**
*Rationale:* USPAP Record Keeping Rule states a 5-year retention period from
preparation, or 2 years after the conclusion of a court proceeding if the
appraiser is aware of it—whichever is *later*.
---
**3. Which of the following is an example of a violation of the Confidentiality
section of the Ethics Rule?**
- A) Discussing the subject property's square footage with a contractor during
the inspection.
- B) Sharing the final value opinion with a secondary market investor who is not
the client, without the client's permission.
- C) Discussing the local market trends with another appraiser at a networking
event.
- D) Providing the client with the report in PDF format.
**Answer: B**
*Rationale:* The appraiser must not disclose confidential information
(including the value opinion) to anyone other than the client, except with client
permission or as required by law.
---
,**4. What is the PRIMARY purpose of the Scope of Work Rule?**
- A) To ensure the appraiser makes as much money as possible on the
assignment.
- B) To ensure the appraiser's work is credible and compliant, based on the
intended use and user.
- C) To force appraisers to use all three approaches to value on every
assignment.
- D) To eliminate the need for an appraisal report.
**Answer: B**
*Rationale:* The Scope of Work Rule requires that the scope be sufficient to
produce credible results for the intended use, and that the appraiser properly
identifies the problem to be solved.
---
**5. An appraiser receives an assignment to appraise a single-family home. The
client asks for an "Appraisal Report" (Summary format) rather than a
"Restricted Appraisal Report." Which of the following is TRUE?**
- A) The appraiser must use the Cost Approach.
- B) The appraiser must include a signed certification.
- C) The appraiser does not need to state the effective date of the appraisal.
- D) The appraiser can omit the definition of market value.
**Answer: B**
*Rationale:* Under Standards Rule 2-2(a)(x), every Appraisal Report must
contain a signed certification. The effective date and value definition are always
required in any report.
, ---
**6. According to USPAP, which of the following is a required component of the
certification?**
- A) The appraiser's Social Security number.
- B) A statement that the appraiser has no bias regarding the subject property.
- C) A guarantee that the property will sell for the appraised value within 6
months.
- D) The appraiser's favorite valuation method.
**Answer: B**
*Rationale:* The certification requires the appraiser to state that they have no
present or prospective interest in the property, and that they performed the
analysis objectively without bias.
---
**7. If an appraiser is completing a retrospective appraisal (effective date is 3
years ago), what must they consider?**
- A) Current market conditions as of the date of the report.
- B) Market conditions that existed as of the effective date (3 years ago).
- C) The future potential of the property.
- D) Only the cost to rebuild the structure today.
**Answer: B**
*Rationale:* The effective date dictates the market conditions, data, and
knowledge the appraiser must use. For a retrospective appraisal, the appraiser
must use data available *as of that past date*.
