McKissock USPAP QUESTIONS AND
ANSWERS
Course
McKissock USPAP
1. Question:
What does USPAP stand for?
Solution:
USPAP stands for Uniform Standards of Professional Appraisal Practice. It is a set of
standards and guidelines for the appraisal profession that outlines the ethical and performance
requirements appraisers must follow when conducting real property appraisals.
2. Question:
Which of the following is true regarding the USPAP Ethics Rule?
a) It focuses on the accuracy of property appraisals.
b) It ensures that appraisers maintain impartiality and avoid conflicts of interest.
c) It provides guidelines for adjusting property values in response to market trends.
d) It includes procedures for handling client disputes.
Solution:
The correct answer is b) It ensures that appraisers maintain impartiality and avoid conflicts
of interest.
The Ethics Rule is one of the key components of USPAP and ensures that appraisers maintain
objectivity, fairness, and integrity in their work by avoiding conflicts of interest and ensuring
impartiality in their analysis.
3. Question:
What is the primary purpose of the USPAP Competency Rule?
Solution:
The Competency Rule requires appraisers to have the necessary knowledge and experience to
perform an appraisal assignment competently. If an appraiser lacks the required knowledge or
expertise for a particular assignment, they must either gain the necessary competence or decline
the assignment.
,4. Question:
Which of the following would NOT be a violation of the USPAP Standards Rule?
a) Failing to maintain confidentiality of client information.
b) Providing an appraisal for a property in which you have a financial interest.
c) Giving a detailed explanation of how the value estimate was derived.
d) Completing an appraisal without adequately inspecting the property.
Solution:
The correct answer is c) Giving a detailed explanation of how the value estimate was derived.
Standard 1 of USPAP requires appraisers to provide a clear and detailed explanation of their
analysis, reasoning, and methodology used to determine the value estimate.
5. Question:
Which of the following is a requirement under the USPAP "Scope of Work Rule"?
a) The appraiser must ensure that the assignment is completed within a specific time frame.
b) The appraiser must communicate the scope of work to the client and include it in the appraisal
report.
c) The appraiser must always use the same approach to value for every appraisal assignment.
d) The appraiser must complete an inspection of every property being appraised.
Solution:
The correct answer is b) The appraiser must communicate the scope of work to the client
and include it in the appraisal report.
The Scope of Work Rule requires appraisers to clearly define the scope of work used in an
assignment and communicate it to the client. This ensures transparency and that all parties
understand what was included in the appraisal process.
6. Question:
In which of the following situations must an appraiser comply with the USPAP's
Jurisdictional Exception Rule?
a) When local laws conflict with USPAP requirements.
b) When an appraiser's client requests a non-standard appraisal format.
c) When the appraiser does not have adequate knowledge of the market area.
d) When the property is located in a rural area.
, Solution:
The correct answer is a) When local laws conflict with USPAP requirements.
The Jurisdictional Exception Rule allows appraisers to deviate from USPAP if it is required by
law or regulation in a particular jurisdiction. In such cases, the appraiser must comply with the
local law or regulation, and the deviation from USPAP must be disclosed in the report.
7. Question:
Which of the following must an appraiser include in an appraisal report according to
USPAP Standard 2?
a) A statement about the appraiser’s qualifications.
b) An explanation of all assumptions and limiting conditions.
c) A recommendation for property repairs.
d) The exact selling price of the property.
Solution:
The correct answer is b) An explanation of all assumptions and limiting conditions.
According to Standard 2, appraisers must provide an explanation of any assumptions and
limiting conditions that affect the appraisal. This ensures transparency and clarity in how the
value estimate was derived.
8. Question:
What is the primary difference between an appraisal report and a restricted use appraisal
report?
a) A restricted use report is used for internal purposes only and is not intended to be shared with
third parties.
b) An appraisal report includes detailed support for the value conclusion, while a restricted use
report does not.
c) A restricted use report includes a full inspection of the property, while an appraisal report does
not.
d) An appraisal report is used for tax purposes only, while a restricted use report is used for loan
underwriting.
Solution:
The correct answer is b) An appraisal report includes detailed support for the value
conclusion, while a restricted use report does not.
A restricted use report is a simplified version of an appraisal report that is only intended for
specific parties or uses, and it does not include as much detail or supporting documentation as a
standard appraisal report.
ANSWERS
Course
McKissock USPAP
1. Question:
What does USPAP stand for?
Solution:
USPAP stands for Uniform Standards of Professional Appraisal Practice. It is a set of
standards and guidelines for the appraisal profession that outlines the ethical and performance
requirements appraisers must follow when conducting real property appraisals.
2. Question:
Which of the following is true regarding the USPAP Ethics Rule?
a) It focuses on the accuracy of property appraisals.
b) It ensures that appraisers maintain impartiality and avoid conflicts of interest.
c) It provides guidelines for adjusting property values in response to market trends.
d) It includes procedures for handling client disputes.
Solution:
The correct answer is b) It ensures that appraisers maintain impartiality and avoid conflicts
of interest.
The Ethics Rule is one of the key components of USPAP and ensures that appraisers maintain
objectivity, fairness, and integrity in their work by avoiding conflicts of interest and ensuring
impartiality in their analysis.
3. Question:
What is the primary purpose of the USPAP Competency Rule?
Solution:
The Competency Rule requires appraisers to have the necessary knowledge and experience to
perform an appraisal assignment competently. If an appraiser lacks the required knowledge or
expertise for a particular assignment, they must either gain the necessary competence or decline
the assignment.
,4. Question:
Which of the following would NOT be a violation of the USPAP Standards Rule?
a) Failing to maintain confidentiality of client information.
b) Providing an appraisal for a property in which you have a financial interest.
c) Giving a detailed explanation of how the value estimate was derived.
d) Completing an appraisal without adequately inspecting the property.
Solution:
The correct answer is c) Giving a detailed explanation of how the value estimate was derived.
Standard 1 of USPAP requires appraisers to provide a clear and detailed explanation of their
analysis, reasoning, and methodology used to determine the value estimate.
5. Question:
Which of the following is a requirement under the USPAP "Scope of Work Rule"?
a) The appraiser must ensure that the assignment is completed within a specific time frame.
b) The appraiser must communicate the scope of work to the client and include it in the appraisal
report.
c) The appraiser must always use the same approach to value for every appraisal assignment.
d) The appraiser must complete an inspection of every property being appraised.
Solution:
The correct answer is b) The appraiser must communicate the scope of work to the client
and include it in the appraisal report.
The Scope of Work Rule requires appraisers to clearly define the scope of work used in an
assignment and communicate it to the client. This ensures transparency and that all parties
understand what was included in the appraisal process.
6. Question:
In which of the following situations must an appraiser comply with the USPAP's
Jurisdictional Exception Rule?
a) When local laws conflict with USPAP requirements.
b) When an appraiser's client requests a non-standard appraisal format.
c) When the appraiser does not have adequate knowledge of the market area.
d) When the property is located in a rural area.
, Solution:
The correct answer is a) When local laws conflict with USPAP requirements.
The Jurisdictional Exception Rule allows appraisers to deviate from USPAP if it is required by
law or regulation in a particular jurisdiction. In such cases, the appraiser must comply with the
local law or regulation, and the deviation from USPAP must be disclosed in the report.
7. Question:
Which of the following must an appraiser include in an appraisal report according to
USPAP Standard 2?
a) A statement about the appraiser’s qualifications.
b) An explanation of all assumptions and limiting conditions.
c) A recommendation for property repairs.
d) The exact selling price of the property.
Solution:
The correct answer is b) An explanation of all assumptions and limiting conditions.
According to Standard 2, appraisers must provide an explanation of any assumptions and
limiting conditions that affect the appraisal. This ensures transparency and clarity in how the
value estimate was derived.
8. Question:
What is the primary difference between an appraisal report and a restricted use appraisal
report?
a) A restricted use report is used for internal purposes only and is not intended to be shared with
third parties.
b) An appraisal report includes detailed support for the value conclusion, while a restricted use
report does not.
c) A restricted use report includes a full inspection of the property, while an appraisal report does
not.
d) An appraisal report is used for tax purposes only, while a restricted use report is used for loan
underwriting.
Solution:
The correct answer is b) An appraisal report includes detailed support for the value
conclusion, while a restricted use report does not.
A restricted use report is a simplified version of an appraisal report that is only intended for
specific parties or uses, and it does not include as much detail or supporting documentation as a
standard appraisal report.
