MCKISSOCK BASIC APPRAISAL PRINCIPLES EXAM
QUESTIONS WITH COMPLETE SOLUTIONS AND
RATIONALES
1. Grant Deed Definition
A. Deed with all covenants of title
B. Deed with no covenants of title
C. Deed containing some covenants of title
D. Oral agreement to transfer property
Answer: C
Rationale: A grant deed contains some, but not all, of the usual covenants of title.
2. Appraiser Role
A. Valuation expert performing independent, impartial services
B. Property manager handling financial records
C. Real estate agent negotiating property sales
D. Lender assessing financial transactions
Answer: A
Rationale: An appraiser is responsible for independent and objective valuation services.
3. Appraisal Report
A. Formal property sale agreement
B. Communication of appraisal results to the client
C. Government document on property ownership
D. Legal judgment on property disputes
,Answer: B
Rationale: An appraisal report communicates valuation findings to the client.
4. Narrative Report
A. Oral summary of an appraisal
B. Written valuation results in narrative style
C. Data-only report with no explanations
D. Simplified checklist format for appraisals
Answer: B
Rationale: A narrative report presents detailed valuation results in writing.
5. Role of AQB (Appraiser Qualifications Board)
A. Sets state-specific guidelines for appraisers
B. Establishes licensing and certification qualifications
C. Audits appraisal organizations for accuracy
D. Approves individual appraisal reports
Answer: B
Rationale: AQB establishes qualification standards for appraisers nationwide.
6. Effective Date for Major AQB Changes
A. January 8, 2008
B. May 1, 2000
C. March 15, 1998
D. December 31, 2010
Answer: A
Rationale: Major revisions to the criteria became effective on January 8, 2008.
,7. Uniform Standards of Professional Appraisal Practice (USPAP)
A. Created in 1987 and adopted by ASB in 1989
B. Established by Congress in 1986
C. Governed by state appraisal boards since 1985
D. Created exclusively for federal property valuations
Answer: A
Rationale: USPAP was created in 1987 and formally adopted by ASB in 1989.
8. Appraisal Foundation Principal Boards
A. Board of Trustees, Appraisal Standards Board, Appraiser Qualifications Board
B. Finance Committee, Audit Committee, and Board of Governors
C. Standards Committee, Review Board, Audit Committee
D. Federal Appraisal Oversight Board
Answer: A
Rationale: The three main boards are BOT, ASB, and AQB.
9. Appraisal Subcommittee (ASC) Role
A. Establishes property ownership laws
B. Oversees state licensing and certification agencies
C. Approves individual appraisers for certification
D. Conducts private property appraisals for clients
Answer: B
Rationale: The ASC is a federal entity that monitors state appraisal boards.
10. Definition of AMCs (Appraisal Management Companies)
A. Companies managing property construction
B. Agencies overseeing independent appraisers
, C. Firms managing appraisal assignments for clients
D. Legal bodies regulating property disputes
Answer: C
Rationale: AMCs are companies that coordinate and manage appraisal assignments.
11. HUD's Fair Lending Enforcement
A. Regulates property development costs
B. Addresses complaints related to fair lending practices
C. Oversees appraiser qualification standards
D. Audits federal appraisal organizations
Answer: B
Rationale: HUD enforces fair lending laws by acting on related complaints.
12. Savings and Loan Crisis Timeline
A. Early 1980s
B. Early 1960s
C. Late 1970s
D. Mid-1990s
Answer: B
Rationale: The Savings and Loan Crisis occurred in the early 1960s.
13. Purpose of Appraisal Practices Board (APB)
A. Provides guidance on valuation methods and techniques
B. Creates laws governing appraisers
C. Monitors appraisal review processes
D. Approves appraisal licenses
QUESTIONS WITH COMPLETE SOLUTIONS AND
RATIONALES
1. Grant Deed Definition
A. Deed with all covenants of title
B. Deed with no covenants of title
C. Deed containing some covenants of title
D. Oral agreement to transfer property
Answer: C
Rationale: A grant deed contains some, but not all, of the usual covenants of title.
2. Appraiser Role
A. Valuation expert performing independent, impartial services
B. Property manager handling financial records
C. Real estate agent negotiating property sales
D. Lender assessing financial transactions
Answer: A
Rationale: An appraiser is responsible for independent and objective valuation services.
3. Appraisal Report
A. Formal property sale agreement
B. Communication of appraisal results to the client
C. Government document on property ownership
D. Legal judgment on property disputes
,Answer: B
Rationale: An appraisal report communicates valuation findings to the client.
4. Narrative Report
A. Oral summary of an appraisal
B. Written valuation results in narrative style
C. Data-only report with no explanations
D. Simplified checklist format for appraisals
Answer: B
Rationale: A narrative report presents detailed valuation results in writing.
5. Role of AQB (Appraiser Qualifications Board)
A. Sets state-specific guidelines for appraisers
B. Establishes licensing and certification qualifications
C. Audits appraisal organizations for accuracy
D. Approves individual appraisal reports
Answer: B
Rationale: AQB establishes qualification standards for appraisers nationwide.
6. Effective Date for Major AQB Changes
A. January 8, 2008
B. May 1, 2000
C. March 15, 1998
D. December 31, 2010
Answer: A
Rationale: Major revisions to the criteria became effective on January 8, 2008.
,7. Uniform Standards of Professional Appraisal Practice (USPAP)
A. Created in 1987 and adopted by ASB in 1989
B. Established by Congress in 1986
C. Governed by state appraisal boards since 1985
D. Created exclusively for federal property valuations
Answer: A
Rationale: USPAP was created in 1987 and formally adopted by ASB in 1989.
8. Appraisal Foundation Principal Boards
A. Board of Trustees, Appraisal Standards Board, Appraiser Qualifications Board
B. Finance Committee, Audit Committee, and Board of Governors
C. Standards Committee, Review Board, Audit Committee
D. Federal Appraisal Oversight Board
Answer: A
Rationale: The three main boards are BOT, ASB, and AQB.
9. Appraisal Subcommittee (ASC) Role
A. Establishes property ownership laws
B. Oversees state licensing and certification agencies
C. Approves individual appraisers for certification
D. Conducts private property appraisals for clients
Answer: B
Rationale: The ASC is a federal entity that monitors state appraisal boards.
10. Definition of AMCs (Appraisal Management Companies)
A. Companies managing property construction
B. Agencies overseeing independent appraisers
, C. Firms managing appraisal assignments for clients
D. Legal bodies regulating property disputes
Answer: C
Rationale: AMCs are companies that coordinate and manage appraisal assignments.
11. HUD's Fair Lending Enforcement
A. Regulates property development costs
B. Addresses complaints related to fair lending practices
C. Oversees appraiser qualification standards
D. Audits federal appraisal organizations
Answer: B
Rationale: HUD enforces fair lending laws by acting on related complaints.
12. Savings and Loan Crisis Timeline
A. Early 1980s
B. Early 1960s
C. Late 1970s
D. Mid-1990s
Answer: B
Rationale: The Savings and Loan Crisis occurred in the early 1960s.
13. Purpose of Appraisal Practices Board (APB)
A. Provides guidance on valuation methods and techniques
B. Creates laws governing appraisers
C. Monitors appraisal review processes
D. Approves appraisal licenses
