MCKISSOCK USPAP
PRACTICE EXAM QUESTIONS
WITH CORRECT DETAILED
ANSWERS | ALREADY GRADED
A+<RECENT VERSION>
1) Standard 2 States... - answer In reporting the results of a real property appraisal, an
appraiser must communicate each analysis, opinion, and conclusion in a manner that is not
misleading.
2) Report - answer Any communication, written or oral, of an appraisal or appraisal review
that is transmitted to the client upon completion of an assignment.
3) What does standard 2 do? - answer STANDARD 2 sets forth minimum content
requirements for written and oral real property appraisal reports.
4) Standard Rule Reporting requirements - answer Each written or oral real property
appraisal report must:
(a) clearly and accurately set forth the appraisal in a manner that will not be misleading;
(b) contain sufficient information to enable the intended users of the appraisal to
understand the report properly; and
(c) clearly and accurately disclose all assumptions, extraordinary assumptions,
hypothetical conditions, and limiting conditions used in the assignment
5) Sufficient information Requirement - answer The appraiser is not required to include
sufficient information so that anyone other than intended users can understand the report.
,6) Standard Rule 2-2 - answer Each written real property appraisal report must be prepared
under one of the following options and prominently state which option is used: Appraisal
Report or Restricted Appraisal Report.
7) Two real property reporting options defined in USPAP - answer -Appraisal Report
-Restricted Appraisal Report
8) What is the difference between an appraisal report and a restricted appraisal report? -
answer The level of detail
9) Who is responsible for determining which reporting option to use? - answer The
appraiser is responsible for the decision regarding which reporting option to use
10) The content of an Appraisal Report must, at a minimum: - answer state the identity of the
client and any intended users, by name or type
11) When can a restricted report be used? - answer A Restricted Appraisal Report is for client
use only, and may only be used when the client is the only intended user of the assignment
results.
12) In an Appraisal Report, the appraiser must, at a minimum: - answer state the intended
use of the appraisal.
13) The content of an Appraisal Report must, at a minimum: - answer -summarize
information sufficient to identify the real estate involved in the appraisal, including the
physical, legal, and economic property characteristics relevant to the assignment.
-state the real property interest appraised.
-state the type and definition of value and cite the source of the definition.
-state the effective date of the appraisal and the date of the report.
-summarize the scope of work used to develop the appraisal.
-summarize the information analyzed, the appraisal methods and techniques employed, and
the reasoning that supports the analyses, opinions, and conclusions; exclusion of the sales
comparison approach, cost approach, or income approach must be explained.
-state the use of the real estate existing as of the date of value and the use of the real estate
reflected in the appraisal;
-when an opinion of highest and best use was developed by the appraiser, summarize the
support and rationale for that opinion;
,14) The report content of an Appraisal Report must, at a minimum: - answer Clearly and
conspicuously:state all extraordinary assumptions and hypothetical conditions; and
state that their use might have affected the assignment results -Include a signed certification
in accordance with Standards Rule 2-3.
15) When is a signed certification required? - answer A signed certification is required in all
written appraisal reports, regardless of the report option utilized.
16) What is the purpose of a signed certification? - answer A signed certification serves as an
appraiser's recognition of his or her ethical obligations.
17) Standard Rule 2-4 - answer To the extent that it is both possible and appropriate, an oral
real property appraisal report must address the substantive matters set forth in Standards
Rule 2-2(a).
18) Record Keeping rule (Oral) - answer The workfile must include... summaries of any oral
reports or testimony, or a transcript of testimony, including the appraiser's signed and dated
certification...A workfile must be in existence prior to the issuance of any report. A written
summary of an oral report must be added to the workfile within a reasonable time after the
issuance of the oral report.
19) What requirements are included in Standard 1? - answer Requirements that are specific
to the development of real property appraisal assignments are found in Standard 1
20) General statement in beginning of standard 1 - answer In developing a real property
appraisal, an appraiser must identify the problem to be solved, determine the scope of work
necessary to solve the problem, and correctly complete research and analyses necessary to
produce a credible appraisal
21) How many rules are there in Standard 1? - answer Six
22) Standard rule 1 - answer 1. Appraiser must be aware of, understand, and correctly
employ those recognized methods and techniques that are necessary to produce a credible
appraisal
2. Not commit a substantial error of omission or commission that significantly affects an
appraisal
, 3. Not render appraisal services in a careless or negligent manner, such as by making a series
or errors, that although individually might not significantly affect the results of an appraisal,
in the aggregate affects the credibility of those results
23) Standard Rule 1.2 (a) - answer An appraiser must identify the client and other intended
users
24) Standard Rule 1.2 (b) - answer An appraiser must identify the intended use of the
appraiser's opinions and conclusions
25) Standard Rule 1.2 (c) - answer An appraiser must identify the type and definition of value,
and, if the value opinion to be developed is market value, ascertain whether the value or to
be the most probable price in specific terms.
26) Exposure Time - answer Estimated length of time the property interest being appraiser
would have been offered on the market prior to a hypothetical consummation of a sale at
market value on the effective date of the appraisal
27) When does exposure time end? - answer Exposure time ends on the effective date of the
appraisal
28) When does marketing time begin? - answer Marketing time begins on the effective date
of the appraisal and extends into the future
29) Standard Rule 1-2 (d) - answer The appraiser must identify the effective date of the
appraiser's opinions and conclusions
30) Standard Rule 1-2 (e) - answer An appraiser must identify the characteristics of the
property that are relevant to the type and definition of value and intended use of appraisal
31) Purpose of inspection - answer To gather information about the characteristics of the
property that are relevant to its value
32) Minimum level of inspection - answer USPAP does not require an inspection
PRACTICE EXAM QUESTIONS
WITH CORRECT DETAILED
ANSWERS | ALREADY GRADED
A+<RECENT VERSION>
1) Standard 2 States... - answer In reporting the results of a real property appraisal, an
appraiser must communicate each analysis, opinion, and conclusion in a manner that is not
misleading.
2) Report - answer Any communication, written or oral, of an appraisal or appraisal review
that is transmitted to the client upon completion of an assignment.
3) What does standard 2 do? - answer STANDARD 2 sets forth minimum content
requirements for written and oral real property appraisal reports.
4) Standard Rule Reporting requirements - answer Each written or oral real property
appraisal report must:
(a) clearly and accurately set forth the appraisal in a manner that will not be misleading;
(b) contain sufficient information to enable the intended users of the appraisal to
understand the report properly; and
(c) clearly and accurately disclose all assumptions, extraordinary assumptions,
hypothetical conditions, and limiting conditions used in the assignment
5) Sufficient information Requirement - answer The appraiser is not required to include
sufficient information so that anyone other than intended users can understand the report.
,6) Standard Rule 2-2 - answer Each written real property appraisal report must be prepared
under one of the following options and prominently state which option is used: Appraisal
Report or Restricted Appraisal Report.
7) Two real property reporting options defined in USPAP - answer -Appraisal Report
-Restricted Appraisal Report
8) What is the difference between an appraisal report and a restricted appraisal report? -
answer The level of detail
9) Who is responsible for determining which reporting option to use? - answer The
appraiser is responsible for the decision regarding which reporting option to use
10) The content of an Appraisal Report must, at a minimum: - answer state the identity of the
client and any intended users, by name or type
11) When can a restricted report be used? - answer A Restricted Appraisal Report is for client
use only, and may only be used when the client is the only intended user of the assignment
results.
12) In an Appraisal Report, the appraiser must, at a minimum: - answer state the intended
use of the appraisal.
13) The content of an Appraisal Report must, at a minimum: - answer -summarize
information sufficient to identify the real estate involved in the appraisal, including the
physical, legal, and economic property characteristics relevant to the assignment.
-state the real property interest appraised.
-state the type and definition of value and cite the source of the definition.
-state the effective date of the appraisal and the date of the report.
-summarize the scope of work used to develop the appraisal.
-summarize the information analyzed, the appraisal methods and techniques employed, and
the reasoning that supports the analyses, opinions, and conclusions; exclusion of the sales
comparison approach, cost approach, or income approach must be explained.
-state the use of the real estate existing as of the date of value and the use of the real estate
reflected in the appraisal;
-when an opinion of highest and best use was developed by the appraiser, summarize the
support and rationale for that opinion;
,14) The report content of an Appraisal Report must, at a minimum: - answer Clearly and
conspicuously:state all extraordinary assumptions and hypothetical conditions; and
state that their use might have affected the assignment results -Include a signed certification
in accordance with Standards Rule 2-3.
15) When is a signed certification required? - answer A signed certification is required in all
written appraisal reports, regardless of the report option utilized.
16) What is the purpose of a signed certification? - answer A signed certification serves as an
appraiser's recognition of his or her ethical obligations.
17) Standard Rule 2-4 - answer To the extent that it is both possible and appropriate, an oral
real property appraisal report must address the substantive matters set forth in Standards
Rule 2-2(a).
18) Record Keeping rule (Oral) - answer The workfile must include... summaries of any oral
reports or testimony, or a transcript of testimony, including the appraiser's signed and dated
certification...A workfile must be in existence prior to the issuance of any report. A written
summary of an oral report must be added to the workfile within a reasonable time after the
issuance of the oral report.
19) What requirements are included in Standard 1? - answer Requirements that are specific
to the development of real property appraisal assignments are found in Standard 1
20) General statement in beginning of standard 1 - answer In developing a real property
appraisal, an appraiser must identify the problem to be solved, determine the scope of work
necessary to solve the problem, and correctly complete research and analyses necessary to
produce a credible appraisal
21) How many rules are there in Standard 1? - answer Six
22) Standard rule 1 - answer 1. Appraiser must be aware of, understand, and correctly
employ those recognized methods and techniques that are necessary to produce a credible
appraisal
2. Not commit a substantial error of omission or commission that significantly affects an
appraisal
, 3. Not render appraisal services in a careless or negligent manner, such as by making a series
or errors, that although individually might not significantly affect the results of an appraisal,
in the aggregate affects the credibility of those results
23) Standard Rule 1.2 (a) - answer An appraiser must identify the client and other intended
users
24) Standard Rule 1.2 (b) - answer An appraiser must identify the intended use of the
appraiser's opinions and conclusions
25) Standard Rule 1.2 (c) - answer An appraiser must identify the type and definition of value,
and, if the value opinion to be developed is market value, ascertain whether the value or to
be the most probable price in specific terms.
26) Exposure Time - answer Estimated length of time the property interest being appraiser
would have been offered on the market prior to a hypothetical consummation of a sale at
market value on the effective date of the appraisal
27) When does exposure time end? - answer Exposure time ends on the effective date of the
appraisal
28) When does marketing time begin? - answer Marketing time begins on the effective date
of the appraisal and extends into the future
29) Standard Rule 1-2 (d) - answer The appraiser must identify the effective date of the
appraiser's opinions and conclusions
30) Standard Rule 1-2 (e) - answer An appraiser must identify the characteristics of the
property that are relevant to the type and definition of value and intended use of appraisal
31) Purpose of inspection - answer To gather information about the characteristics of the
property that are relevant to its value
32) Minimum level of inspection - answer USPAP does not require an inspection
