USPAP Exam QUESTIONS WITH CORRECT SOLVED
ANSWERS.
A client engages an appraiser to complete an appraisal on a residential property, and the appraiser
reports the assignment results in a Restricted Appraisal Report. Which statement is true regarding the
appraiser's workfile obligations for this assignment? - CORRECT ANSWER✅✅The data and
documentation in the workfile must be sufficient to produce an Appraisal Report.
A client engages an appraiser to complete an appraisal on a residential property; the appraiser develops
a value opinion and transmits the report to the client. Three years later, the client files a complaint
against the appraiser with the state appraiser regulatory agency. The agency contacts the appraiser and
requests the appraiser make the assignment workfile available to the agency. The appraiser is
concerned about confidentiality. Under USPAP, may the appraiser refuse to provide workfile access to
the state regulatory agency? - CORRECT ANSWER✅✅No, the RECORD KEEPING RULE requires the
appraiser to make the workfile available to the state appraiser regulatory agency
A client makes several requests of an appraiser who is completing an appraisal assignment. Which of
these client requests is an assignment condition as defined by USPAP? - CORRECT ANSWER✅✅The
appraiser must, at minimum, develop the sales comparison and the cost approach
A client's business partner contacts an appraiser and requests information relating to an appraisal report
the appraiser had prepared for the client. May the appraiser disclose the results of the appraisal to the
client's business partner? - CORRECT ANSWER✅✅Yes, provided the appraiser obtains authorization
from the client before sharing any confidential information
A lender has contacted an appraiser to determine the high and low sale prices in the past year that took
place in the Green Hills Subdivision. No mention was made of a subject property by the lender. The
appraiser supplied a list of all sales within the past year in the subdivision and billed the lender for
service. The service being provided by the appraiser is - CORRECT ANSWER✅✅Appraisal practice with
no performance standards or record keeping requirements
A local builder hires you to provide a market value appraisal in order to secure financing for a
construction loan. He provides you with the necessary plans and specifications for the proposed
construction. The site is currently zoned R-1 single-family residential, but the developer is planning to
build a duplex. He has already filed to change the zoning to R-2 with the city zoning department and is
,quite confident that his application will be approved. The change will permit up to two residential units
to be built on one lot. You appraise the property using a current effective date, and value the property
as though the zoning had been changed by the effective date of the appraisal. In order to conform to
USPAP, you must use a(n): - CORRECT ANSWER✅✅Hypothetical condition
A new house is being appraised for mortgage lending purposes. Sales in the area are scarce. There are
no comparable rental houses available for analysis. The client is a local lender that does not plan to sell
the mortgage in the secondary mortgage market. The client has instructed Appraiser Sarah to appraise
the newly-constructed house, and to utilize only the sales comparison approach. Sarah performs the
inspection and collects market data. She concludes that the cost approach should receive most of the
weight in her final reconciliation. What should she do? - CORRECT ANSWER✅✅Sarah should proceed
with the cost approach after she discusses the situation with the client.
A property owner asks an appraiser to represent the owner in appealing the ad valorem assessment of
the property. The assignment would involve the appraiser developing a value for the property and
advocating for a lower assessed value. May the appraiser perform this assignment under USPAP? -
CORRECT ANSWER✅✅No, an appraiser is never permitted under USPAP to perform an assignment that
involves advocacy
An appraiser is never permitted under USPAP to perform a service that involves advocacy
A property owner asks you to appraise her property and states that you will be compensated only if you
arrive at a value of $100,000 or greater. You should: - CORRECT ANSWER✅✅Refuse to do the appraisal
and tell her it is unethical to accept compensation based on a predetermined value
A property owner has asked an appraiser to provide a copy of an appraisal, in which the appraiser was
engaged by a mortgage lender, to the property owner's insurance agent. How should the appraiser
handle this request? - CORRECT ANSWER✅✅The appraiser cannot release the report without the
consent of the lender.
A real property appraiser has agreed to perform an appraisal assignment of a property owned by a non-
profit charitable entity. The appraiser is willing to perform the appraisal at no charge; however, the
appraiser wishes to submit their report to the entity using a short two-paragraph letter. How would this
assignment conform to USPAP? - CORRECT ANSWER✅✅The appraiser may choose not to charge a fee,
but the report would need to conform to the reporting standards.
, A real property appraiser has been asked by Lender A to readdress an appraisal report in which they had
engaged the appraiser, and send the report to Lender B. Lender B then contacts the appraiser and asks
the appraiser to replace Lender A as the client in the assignment report with Lender B. How should the
appraiser handle this request? - CORRECT ANSWER✅✅Refuse to accommodate this request as
readdressing an appraisal report or adding an intended user after it is completed is not in compliance
with USPAP.
A Restricted Appraisal Report must include: - CORRECT ANSWER✅✅A warning that the report may not
contain supporting rationale for all of the opinions and conclusions set forth in the report
A reviewer concluded that an appraisal they were reviewing was not credible. How is the credibility of
an appraisal measured? - CORRECT ANSWER✅✅In the context of intended use
A subject residential house has an unusual configuration and it therefore takes the appraiser a great
deal of time to measure and make the calculations to arrive at the calculations of gross living area (GLA).
The appraiser's GLA figure is best described as: - CORRECT ANSWER✅✅A physical characteristic
A trainee appraiser provides significant appraisal assistance to a senior appraiser. The trainee appraiser
does not sign the certification, but instead the trainee appraiser's name is listed in the certification as
having provided significant assistance. What else is the senior appraiser required to do in order to meet
USPAP requirements for disclosing significant appraisal assistance in an Appraisal Report? - CORRECT
ANSWER✅✅Summarize the extent of the assistance somewhere in the report
According to STANDARD 3, an appraiser performing an appraisal review must do all of the following
except: - CORRECT ANSWER✅✅Develop his or her own opinion of value
According to the JURISDICTIONAL EXCEPTION RULE, it is not a violation of USPAP if an appraiser: -
CORRECT ANSWER✅✅disregards a requirement of USPAP that conflicts with a law of a jurisdiction, as
long as there is proper disclosure in the report.
According to the Management Section of the ETHICS RULE, an appraiser may agree to a referral fee,
management fee, commission, or anything of value in connection with obtaining an assignment as long
as the appraiser: - CORRECT ANSWER✅✅Discloses the payment of a fee in the appraisal report
ANSWERS.
A client engages an appraiser to complete an appraisal on a residential property, and the appraiser
reports the assignment results in a Restricted Appraisal Report. Which statement is true regarding the
appraiser's workfile obligations for this assignment? - CORRECT ANSWER✅✅The data and
documentation in the workfile must be sufficient to produce an Appraisal Report.
A client engages an appraiser to complete an appraisal on a residential property; the appraiser develops
a value opinion and transmits the report to the client. Three years later, the client files a complaint
against the appraiser with the state appraiser regulatory agency. The agency contacts the appraiser and
requests the appraiser make the assignment workfile available to the agency. The appraiser is
concerned about confidentiality. Under USPAP, may the appraiser refuse to provide workfile access to
the state regulatory agency? - CORRECT ANSWER✅✅No, the RECORD KEEPING RULE requires the
appraiser to make the workfile available to the state appraiser regulatory agency
A client makes several requests of an appraiser who is completing an appraisal assignment. Which of
these client requests is an assignment condition as defined by USPAP? - CORRECT ANSWER✅✅The
appraiser must, at minimum, develop the sales comparison and the cost approach
A client's business partner contacts an appraiser and requests information relating to an appraisal report
the appraiser had prepared for the client. May the appraiser disclose the results of the appraisal to the
client's business partner? - CORRECT ANSWER✅✅Yes, provided the appraiser obtains authorization
from the client before sharing any confidential information
A lender has contacted an appraiser to determine the high and low sale prices in the past year that took
place in the Green Hills Subdivision. No mention was made of a subject property by the lender. The
appraiser supplied a list of all sales within the past year in the subdivision and billed the lender for
service. The service being provided by the appraiser is - CORRECT ANSWER✅✅Appraisal practice with
no performance standards or record keeping requirements
A local builder hires you to provide a market value appraisal in order to secure financing for a
construction loan. He provides you with the necessary plans and specifications for the proposed
construction. The site is currently zoned R-1 single-family residential, but the developer is planning to
build a duplex. He has already filed to change the zoning to R-2 with the city zoning department and is
,quite confident that his application will be approved. The change will permit up to two residential units
to be built on one lot. You appraise the property using a current effective date, and value the property
as though the zoning had been changed by the effective date of the appraisal. In order to conform to
USPAP, you must use a(n): - CORRECT ANSWER✅✅Hypothetical condition
A new house is being appraised for mortgage lending purposes. Sales in the area are scarce. There are
no comparable rental houses available for analysis. The client is a local lender that does not plan to sell
the mortgage in the secondary mortgage market. The client has instructed Appraiser Sarah to appraise
the newly-constructed house, and to utilize only the sales comparison approach. Sarah performs the
inspection and collects market data. She concludes that the cost approach should receive most of the
weight in her final reconciliation. What should she do? - CORRECT ANSWER✅✅Sarah should proceed
with the cost approach after she discusses the situation with the client.
A property owner asks an appraiser to represent the owner in appealing the ad valorem assessment of
the property. The assignment would involve the appraiser developing a value for the property and
advocating for a lower assessed value. May the appraiser perform this assignment under USPAP? -
CORRECT ANSWER✅✅No, an appraiser is never permitted under USPAP to perform an assignment that
involves advocacy
An appraiser is never permitted under USPAP to perform a service that involves advocacy
A property owner asks you to appraise her property and states that you will be compensated only if you
arrive at a value of $100,000 or greater. You should: - CORRECT ANSWER✅✅Refuse to do the appraisal
and tell her it is unethical to accept compensation based on a predetermined value
A property owner has asked an appraiser to provide a copy of an appraisal, in which the appraiser was
engaged by a mortgage lender, to the property owner's insurance agent. How should the appraiser
handle this request? - CORRECT ANSWER✅✅The appraiser cannot release the report without the
consent of the lender.
A real property appraiser has agreed to perform an appraisal assignment of a property owned by a non-
profit charitable entity. The appraiser is willing to perform the appraisal at no charge; however, the
appraiser wishes to submit their report to the entity using a short two-paragraph letter. How would this
assignment conform to USPAP? - CORRECT ANSWER✅✅The appraiser may choose not to charge a fee,
but the report would need to conform to the reporting standards.
, A real property appraiser has been asked by Lender A to readdress an appraisal report in which they had
engaged the appraiser, and send the report to Lender B. Lender B then contacts the appraiser and asks
the appraiser to replace Lender A as the client in the assignment report with Lender B. How should the
appraiser handle this request? - CORRECT ANSWER✅✅Refuse to accommodate this request as
readdressing an appraisal report or adding an intended user after it is completed is not in compliance
with USPAP.
A Restricted Appraisal Report must include: - CORRECT ANSWER✅✅A warning that the report may not
contain supporting rationale for all of the opinions and conclusions set forth in the report
A reviewer concluded that an appraisal they were reviewing was not credible. How is the credibility of
an appraisal measured? - CORRECT ANSWER✅✅In the context of intended use
A subject residential house has an unusual configuration and it therefore takes the appraiser a great
deal of time to measure and make the calculations to arrive at the calculations of gross living area (GLA).
The appraiser's GLA figure is best described as: - CORRECT ANSWER✅✅A physical characteristic
A trainee appraiser provides significant appraisal assistance to a senior appraiser. The trainee appraiser
does not sign the certification, but instead the trainee appraiser's name is listed in the certification as
having provided significant assistance. What else is the senior appraiser required to do in order to meet
USPAP requirements for disclosing significant appraisal assistance in an Appraisal Report? - CORRECT
ANSWER✅✅Summarize the extent of the assistance somewhere in the report
According to STANDARD 3, an appraiser performing an appraisal review must do all of the following
except: - CORRECT ANSWER✅✅Develop his or her own opinion of value
According to the JURISDICTIONAL EXCEPTION RULE, it is not a violation of USPAP if an appraiser: -
CORRECT ANSWER✅✅disregards a requirement of USPAP that conflicts with a law of a jurisdiction, as
long as there is proper disclosure in the report.
According to the Management Section of the ETHICS RULE, an appraiser may agree to a referral fee,
management fee, commission, or anything of value in connection with obtaining an assignment as long
as the appraiser: - CORRECT ANSWER✅✅Discloses the payment of a fee in the appraisal report
