Different appraisal regulations among states.
Which is not one of the contributing factors that led to a need for regulation in the appraisal profession?<\/p>\n\n\n\n
Appraisal Subcommittee (ASC)
Responsible for the Federal oversight of state real estate licensing and certification<\/p>\n\n\n\n
TRUE
(T\/F) The AppraisalSubcommittee monitors the activities of TAF to determine if policies and procedures are consistent with title XI of FIRREA<\/p>\n\n\n\n
Appraisal Subcommittee (ASC)
Which board maintains the official National Registry of appraisers?<\/p>\n\n\n\n
Appraisal Practices Board (APB)
The board that identifies and issues voluntary guidance relating to recognized methods and techniques is the<\/p>\n\n\n\n
TRUE
(T\/F) State agencies may impose appraiser requirements above and beyond those required by the Appraiser Qualifications Board and the Appraiser Standards Board.<\/p>\n\n\n\n
State Regulatory Agencies
Who is responsible for enforcing USPAP?<\/p>\n\n\n\n
Contains terms that have a specific meaning in USPAP
The definitions section of USPAP<\/p>\n\n\n\n
Promote and maintain a high level of public trust in appraisal practice.
The preamble of USPAP sets the tone that the purpose of USPAP is to<\/p>\n\n\n\n
A manner that is meaningful and not misleading.
The preamble of USPAP requires. Appraisers to communicate their analysis, opinions and conclusions in<\/p>\n\n\n\n
Illustrate the applicability of USPAP in specific situations.
Shelia had concerns about an appraisal situation and she was uncertain how to proceed. She consulted the USPAP Advisory opinions which<\/p>\n\n\n\n
Advisory Opinions
Which is NOT a part of USPAP?<\/p>\n\n\n\n
Standard 2
Which USPAP Standard addresses the reporting of an individual in a real property appraisal?<\/p>\n\n\n\n
Problem identification
The USPAP Appraisal Process begins with<\/p>\n\n\n\n
Reconciliation and final value opinion.
In the USPAP Appraisal Process, which is the final step in the development process?<\/p>\n\n\n\n
All types of property.
The USPAP Appraisal Process can be followed for appraising what types of property?<\/p>\n\n\n\n
Relationship to a previous appraisal or numerical benchmark.
An appraisal must be in a specific number, a range of numbers or a<\/p>\n\n\n\n
Workfile
The subject of an appraisal review could be all or part of a REPORT, a___________________________, or a combination of these<\/p>\n\n\n\n
Do not An authorized representative of the lender Opinions and conclusions By name or type Preference or inclination Identify the problem Assumption Extraordinary Assumption Hypothetical condition. Price Cost Exposure time Before After Assignment results Documentation necessary to support the appraiser’s analysis, opinions and conclusions Identified by the client as confidential and not available from any other source. Performed only by appraisers Appraisers and other professionals Hypothetical condition No Research and analysis problem identification At the time of Identifies applicable requirements and guidance practice is not permitted Appraisal course development Appraisal practice only includes performing an appraisal or appraisal review. TRUE Misrepresent his role Evaluating another appraiser’s work. Yes, as long as there is no user expectation for the individual to act in the role of the appraiser Valuation services with no applicable standards<\/p>\n\n\n\n Appraisal practice with no applicable standards Appraisal assignment with performance standards Appraisal practice with no performance standards or record keeping requirements. TRUE Must sign the report as an appraiser and USPAP would apply. Is not required to follow USPAP, but she must not misrepresent her role. Including, but not limited to Users of appraisal services. Inquire about the intended users expectations.<\/p>\n\n\n\n Yes. Since Scott is acting in the role of an appraiser, he has USPAP obligations. No, she is a broker, not an appraiser. Both appraisers and others Value Misrepresent their role Appraisal practice with performance obligations Appraisal Standards Board (ASB) Establish minimum criteria for real property appraiser certification and licensing ETHICS RULE 2-1(a) Standards Rule 3-6 He must disclose that to the client.<\/p>\n\n\n\n We’re either performed or not performed The kitchen design service on the property needs to be disclosed.<\/p>\n\n\n\n Prior appraisal services performed NOT other services, must appear in the report certification. NO<\/p>\n\n\n\n Conduct performing an appraisal assignment for the property. Extension of the first assignment.<\/p>\n\n\n\n Is not required to disclose he received an item of value from the client. In the certification and any transmittal letter<\/p>\n\n\n\n A fee based on the volume of total business from a client.<\/p>\n\n\n\n Certify recognition and acceptance of USPAP The confidentiality section of the ETHICS RULE does not apply to subcontractors of the appraiser. Yes. Given the agreement, he cannot disclose it, or accept the subsequent assignment. Conduct Disclose the fact a fee was paid, although he does not have to give the amount. No- Omitting the discussion could provide a misleading report.<\/p>\n\n\n\n Record Keeping Rule Kent, since he assisted with the report and Brenda has custody. 5 Years<\/p>\n\n\n\n 2 years<\/p>\n\n\n\n Correctly identify the problem<\/p>\n\n\n\n Prior to accepting the assignment Decline or withdraw from the assignment. Knowledge and experience of the appraiser Prior to the issuance of the report<\/p>\n\n\n\n None<\/p>\n\n\n\n Appraiser’s credentials The responsibility of the appraiser<\/p>\n\n\n\n Competency in that type of assignment Will not be FALSE- new assignment may have different scope of work Scope of work that was actually performed.<\/p>\n\n\n\n When it enhances understanding by intended users<\/p>\n\n\n\n Hypothetical condition<\/p>\n\n\n\n The appraiser<\/p>\n\n\n\n Disregard the circumstances and proceed as originally planned. Reporting option to be used in the assignment INTENDED USE When credible assignment results can still be developed Other appraisers who have expertise and competency in a similar type of assignment.<\/p>\n\n\n\n Competency<\/p>\n\n\n\n Client and other intended users and the intended use of<\/p>\n\n\n\n problem identification and determining the scope of work<\/p>\n\n\n\n NO<\/p>\n\n\n\n Exposure Time<\/p>\n\n\n\n Prior to<\/p>\n\n\n\n Definition of Value FALSE- only when it is a component of the definition of value Becky’s failure to report the building code would lead to a misleading report.<\/p>\n\n\n\n Identify relevant property characteristics, which include the legal attribute of the property Examine and have available for future examination Extraordinary Assumption Development of an opinion of highest and best use Unsupported assumption or premise. An assignment is NOT acceptable if foreclosures are disregarded as comparable properties. Value the whole by adding together the value of the various fractional interests. Such comparable sales as are available Analyze comparable data as available to estimate accrued depreciation.<\/p>\n\n\n\n Yes – transferred for value Reasonably clear and appropriate evidence Subject property<\/p>\n\n\n\n exposure time is a component of the definition for the value opinion being developed. The scope of work to be performed Determine if foreclosed property data are relevant to the assignment Reconcile the applicability and relevance of<\/p>\n\n\n\n Report the opinions and conclusions reached by an appraiser Supplying published data regarding permissible improvements compliant with zoning. (Property tax assessment too high IS an assignment)<\/p>\n\n\n\n Restricted Appraisal report<\/p>\n\n\n\n Substantive content Appraisal report<\/p>\n\n\n\n Must Intended use and intended users In addition, but not in place of STATE SUMMARIZE. Appraisal = summarize, Restricted Appraisal = state<\/p>\n\n\n\n Restricted Appraisal Report<\/p>\n\n\n\n Appraisal Report only Their use might have affected the assignment results. Restricted Appraisal report onlly Both appraisal report options Signs any part of the appraisal report including a letter of transmittal.<\/p>\n\n\n\n Multiple disciplines are involved<\/p>\n\n\n\n Any oral report or testimony is communicated prominently state in the report Information that the appraiser identified as confidential Sufficient information<\/p>\n\n\n\n Basic requirements for competency and diligence in an appraisal review Hypothetical Condition Standard Minimum report content for an appraisal review General reporting Intended Use of the Appraisal Review Standard 1<\/p>\n\n\n\n There is as reasonable basis for the Extraordinary Assumption.<\/p>\n\n\n\n ALWAYS! Unless identity withheld by client<\/p>\n\n\n\n Minimum report content Reasonably clear and appropriate evidence Development of opinion of Highest and Best use. Definition of Value Calibrating<\/p>\n\n\n\n Real and personal property Testing procedures and techniques<\/p>\n\n\n\n Standard 1<\/p>\n\n\n\n Standard 2<\/p>\n\n\n\n Each level may generate its own data<\/p>\n\n\n\n FALSE. Appraisal is summarized, Restricted Appraisal is stated. No specific time period<\/p>\n\n\n\n State<\/p>\n\n\n\n Specified Market or at a Specified Market Level A reasonable and appropriate time period<\/p>\n\n\n\n Specifying property valuation models<\/p>\n\n\n\n
USPAP definitions ________<\/em><\/strong><\/em><\/strong> specifically define the term “Market Value” that is consistently applied by the appraiser when the type of value in the assignment is market value.<\/p>\n\n\n\n
In an assignment for which the appraiser was hired by an appraisal management company (AMC) the appraiser may consider the lender the client as long as the AMC is<\/p>\n\n\n\n
Within USPAP, the appraisers ___________________<\/em><\/strong><\/em><\/strong> are (is) always specific to the intended use<\/p>\n\n\n\n
Intended users in a specific assignment must be identified<\/p>\n\n\n\n
USPAP defines bias as a ____________<\/em><\/strong><\/em><\/strong> that precludes an appraisers impartiality, independence or objectivity in an assignment<\/p>\n\n\n\n
In order to determine the scope of work to perform in an assignment, what must the appraiser first do?<\/p>\n\n\n\n
Craig, a real property appraiser is not an expert in real estate law. In every assignment, he includes a disclosure stating this fact and that in his conclusions, he is considering the property to have good and marketable title. which best describes Craig’s action?<\/p>\n\n\n\n
Appraiser Linda could not check the furnace to see if it is in good working order as the utilities are off. As the home is relatively new and the furnace appears to be in good condition, Linda believes it is in satisfactory working condition, but she is not sure. She bases her conclusion on an<\/p>\n\n\n\n
Chad appraised a property that had an inoperative air conditioner at the date of the appraisal. Chad considered the air conditioner as if it was working in the analysis, thus basing his opinions and conclusions on a<\/p>\n\n\n\n
Considered factual once stated, this is the amount asked, offered or paid for a property.<\/p>\n\n\n\n
The amount required to create, produce or obtain a property is known as<\/p>\n\n\n\n
An estimate of __________<\/em><\/strong><\/em><\/strong> is required by USPAP when it is a component of the definition of market value in appraisal assignments for real and personal property<\/p>\n\n\n\n
Exposure time occurs_________________________ the effective date of the appraisal assignment<\/p>\n\n\n\n
Marketing time occurs______________________ the effective date of the appraisal assignment<\/p>\n\n\n\n
_________________<\/em><\/strong><\/em><\/strong> are the appraisers opinions and conclusions developed specific to an assignment<\/p>\n\n\n\n
Which best describes a work file?<\/p>\n\n\n\n
Per the USPAP definition, in order for information to be considered confidential, the information must be<\/p>\n\n\n\n
Appraisal practice is best described as a service that is<\/p>\n\n\n\n
Who may provide a valuation service?<\/p>\n\n\n\n
If a property is known by the appraiser on the effective date as having an inoperable mechanical system component, but the appraiser is considering the component as if it were operating properly on that date for the purpose of his analysis, on what is the appraiser basing his opinions and conclusions?<\/p>\n\n\n\n
If there is no client, can there be an assignment?<\/p>\n\n\n\n
The Scope of Work is defined by USPAP as the type and extent of ______________<\/em><\/strong><\/em><\/strong> in an assignment<\/p>\n\n\n\n
An appraiser determines the appropriate definition of market value to be used in the assignment during<\/p>\n\n\n\n
According to USPAP definitions, the appraiser identifies the intended use and the intended user___________________________ the assignment<\/p>\n\n\n\n
A Standards Rule<\/p>\n\n\n\n
While in the role of an appraiser, advocacy<\/p>\n\n\n\n
When acting in the role of an appraiser, all of the following require compliance with all sections of USPAP, including the applicable standards 1 through 10 except for<\/p>\n\n\n\n
Which statement about appraisal practice is false?<\/p>\n\n\n\n
(T\/F) An appraiser providing a range of rents for a market area is engaged in appraisal practice<\/p>\n\n\n\n
When an individual is performing valuation services outside of appraisal practice, that individual must be careful not to<\/p>\n\n\n\n
Which of these services within appraisal practice has specific performance standards?<\/p>\n\n\n\n
Can an individual who provides appraisal services as well as another professional service accept an assignment outside of appraisal practice?<\/p>\n\n\n\n\n
A real property appraiser teaching appraisal is engaged in<\/p>\n\n\n\n
Lionel, a real estate appraiser, is in the process of developing an opinion of value, which is considered an<\/p>\n\n\n\n
A lender called an appraiser to determine the high and low sales prices in the past year for a particular subdivision. No mention was made of a subject property by the lender. The appraiser supplied a list of all the comparable sales in the subdivision. The service provided by the appraiser is<\/p>\n\n\n\n
(T\/F) When an appraiser selects comparable sales and uses his judgement to interpret how the data relates to a particular property, the appraiser is expressing an opinion which is an appraisal<\/p>\n\n\n\n
Ron is both a real estate broker and an appraiser. his client is aware of Ron’s ability to perform in either capacity and expects him to perform a BPO in the role of an appraiser. In this situation Ron<\/p>\n\n\n\n
Dottie is both an appraiser and a real estate broker. A client requested Dottie prepare a BPO as a real estate brokerage service. The state in which Dottie practices does not prohibit her from performing BPO’s, so she is going to prepare and sign the BPO as a real estate broker. Dottie<\/p>\n\n\n\n
Appraisal practice is defined as valuation services performed by an individual acting as an appraiser _____________________<\/em><\/strong><\/em><\/strong> appraisal and appraisal review<\/p>\n\n\n\n
USPAP benefits providers of appraisal services and<\/p>\n\n\n\n\n
Scott, an appraiser, has been asked to perform a market rent study for a private individual. Does Scott have any USPAP obligations?<\/p>\n\n\n\n
Tonya, a real estate broker, performs a market analysis to estimate a listing price for a seller. does she have USPAP obligations?<\/p>\n\n\n\n
Who can provide valuation services?<\/p>\n\n\n\n
Which is never a fact, but always an opinion of the worth of a property at any given time based upon a specific definition?<\/p>\n\n\n\n
When the occasion arises to perform in a capacity other than an appraiser, individuals must not<\/p>\n\n\n\n
When an appraiser supplies all sales data that he feels is most relevant for a particular property, the service is<\/p>\n\n\n\n
The board that develops, interprets and amends USPAP is the<\/p>\n\n\n\n
Which is the role of the Appraisal Qualifications Board?<\/p>\n\n\n\n
If an appraiser makes a false statement either intentionally or by negligence, the appraiser has violated the<\/p>\n\n\n\n
Which Standards Rule requires that appraisal reports clearly and accurately set forth the appraisal in a manner that will not be misleading?<\/p>\n\n\n\n
Appraiser Vicky performed an appraisal review service for a subject property that she has previously appraised and she must disclose that prior service in the certification. Which Standards Rule addresses this?<\/p>\n\n\n\n\n
The reporting of prior services in the report certification for Standards Rules 2-3, 3-6, 6-9, 8-3 and 10-3 indicates when services<\/p>\n\n\n\n\n
Which statement regarding disclosure of prior services within the past three years is false?<\/p>\n\n\n\n\n
Which section of the ETHICS RULE requires appraisers to disclose that. Prior services were performed for a particular property?<\/p>\n\n\n\n
Which action would constitute “Performing a prior service” for a property?<\/p>\n\n\n\n\n
Stella hired Sam to appraise her mothers home in exchange for some fine art. In his appraisal report Sam<\/p>\n\n\n\n\n
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According to the Management Section of the ETHICS RULE, an appraiser affixes his signature for what purpose?<\/p>\n\n\n\n
Which statement is false regarding an appraiser’s duty to safeguard confidential information?<\/p>\n\n\n\n
If an appraiser agreed to keep confidential the fact that he appraised a particular property, would it be in violation of the Confidentiality Section of the ETHICS RULE to disclose in the certification of a subsequent assignment that the appraiser previously appraised the property in the last three years?<\/p>\n\n\n\n
Appraiser Jackie does not disclose a property condition in an appraisal report at the request of the property owner who is not the client. Which section of the ETHICS RULE applies to this situation?<\/p>\n\n\n\n
If an appraiser pays a fee in connection with procurement of an assignment, the appraiser must<\/p>\n\n\n\n\n
Which Rule under USPAP addresses work-file access and retrieval?<\/p>\n\n\n\n
Appraiser Brenda received significant appraisal assistance from Kent and Brenda has custody of the workfile. Who is responsible for making the arrangements for workfile access and retrieval arrangements?<\/p>\n\n\n\n\n
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\n
When must the lack of competency first be disclosed?<\/p>\n\n\n\n
If an appraiser is unable to comply with the Competency Rule to complete an assignment competently, he is obligated to<\/p>\n\n\n\n
Which most closely defines competency?<\/p>\n\n\n\n\n
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Which would not be considered a competency factor in a particular assignment?<\/p>\n\n\n\n\n
Identification of the subject property’s relevant characteristics is a judgement made by the appraiser that requires<\/p>\n\n\n\n
The scope of work decision _________________<\/em><\/strong><\/em><\/strong> the same way in every assignment with every type of property<\/p>\n\n\n\n
(T\/F) * An Appraiser can only use information obtained during the course of an earlier assignment if the information is not considered confidential and the SAME scope of work is decided in the new assignment<\/p>\n\n\n\n\n
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\n
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Which is not an option when an appraiser finds circumstances that change the research and analysis that he originally planned at the onset of an assignment?<\/p>\n\n\n\n
which is not an element of Problem Identification?<\/p>\n\n\n\n
According to the Scope of Work Rule, credibility of assignment results is always measured in the context of the<\/p>\n\n\n\n
When can an extraordinary assumption be used regarding information not available to the appraiser due to assignment conditions?<\/p>\n\n\n\n\n
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\n
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An appraiser must develop an opinion of reasonable exposure time linked to the value opinion when exposure time is a component of the<\/p>\n\n\n\n
(T\/F) Exposure time must be developed by an appraiser in every assignment regardless of type and definition of value<\/p>\n\n\n\n\n
Standards Rule 1-2(e) requires the appraiser to<\/p>\n\n\n\n
For proposed improvements, an appraiser must ___________<\/em><\/strong><\/em><\/strong> plans, specifications or other documentation to sufficiently identify the extent and character of the proposed improvements<\/p>\n\n\n\n
An ________________<\/em><\/strong><\/em><\/strong> may be used in an assignment only if there is a reasonable basis for it’s use<\/p>\n\n\n\n
Standards Rule 1-3, in part requires which action in a MARKET VALUE assignment?<\/p>\n\n\n\n
When an appraiser is forming opinions and conclusions regarding market area trends, effective age and remaining life, which should an appraiser avoid?<\/p>\n\n\n\n
Which statement regarding short sale properties is false?<\/p>\n\n\n\n
When an appraiser has developed a separate value for the various fractional real property interests, which must he not do?<\/p>\n\n\n\n
According to Standard Rule 1-4, what quantity of data must be analyzed when a sales comparison approach is necessary for credible assignment results?<\/p>\n\n\n\n\n
Must a transfer that was the result of a foreclosure action be analyzed to be in compliance with Standards Rule 1-5(b) even though it is recognized such transfers don’t constitute arms-length transactions?<\/p>\n\n\n\n
When developing an INCOME APPROACH, Standards Rule 1-4(c) in part, requires an appraiser to base projections of future rent or income potential and expenses on<\/p>\n\n\n\n\n
According to the comment section to Standards Rule 1-2(c), an appraiser must develop an opinion of reasonable exposure time when<\/p>\n\n\n\n
The intended use of an appraisers opinions and conclusions is a key element in determining ____________<\/em><\/strong><\/em><\/strong> in an assignment<\/p>\n\n\n\n
Brenda received an appraisal assignment for a property in an area that contains many foreclosed properties. Brenda’s client has instructed her to avoid using foreclosures as comps. What should she do?<\/p>\n\n\n\n\n
Which is NOT one of the 3 general obligations of an appraiser under Standard 1?<\/p>\n\n\n\n\n
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The _____________<\/em><\/strong><\/em><\/strong> of a report determines compliance with the reporting options permitted by Standard 2<\/p>\n\n\n\n\n
When there are intended users in the assignment other than the client, an appraisal report _____________<\/em><\/strong><\/em><\/strong> be used<\/p>\n\n\n\n
The level of information necessary in a report and the reporting option chosen by the appraiser depends on the ___________<\/em><\/strong><\/em><\/strong> in an assignment<\/p>\n\n\n\n
An appraiser may use any other label_______________________ the label of Appraisal report or Restricted Appraisal Report<\/p>\n\n\n\n
A RESTRICTED APPRAISAL REPORT requires the appraiser to _______________<\/em><\/strong><\/em><\/strong> the extent of assistance provided by another appraiser or appraiser trainee<\/p>\n\n\n\n\n
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Which reporting option requires a “summary” of the results of analyzing subject sales, options and listings in a market Value assignment?<\/p>\n\n\n\n
Both reporting options require an appraiser to clearly and conspicuously state all the EXTRAORDINARY ASSUMPTIONS and HYPOTHETICAL CONDITIONS and state that<\/p>\n\n\n\n
In which reporting method must an appraiser “State” the methods and techniques used?<\/p>\n\n\n\n
According to Standards Rule 2-3, which reporting option must contain a signed certification with a written real property appraisal report?<\/p>\n\n\n\n\n
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A summary of an oral appraisal report or a transcript of testimony must be included in the workfile when<\/p>\n\n\n\n
Standards Rule 2-2 requires an appraiser to ___________<\/em><\/strong><\/em><\/strong> which reporting option is being used in an assignment<\/p>\n\n\n\n
An oral report must contain all of this information except<\/p>\n\n\n\n\n
Standards Rule 3-1 contains language regarding<\/p>\n\n\n\n
Use of a(n) _______________<\/em><\/strong><\/em><\/strong> is required for legal purposes, for purposes of reasonable analysis or for purpose of comparison<\/p>\n\n\n\n
Carly is developing her own opinion of value in an appraisal review; thus she must comply with the ____________<\/em><\/strong><\/em><\/strong> applicable to the development of her opinion<\/p>\n\n\n\n
Standards rule 3-5 expands the requirements of the<\/p>\n\n\n\n
Standards Rule 3-4 covers the _________________<\/em><\/strong><\/em><\/strong> requirements that apply to appraisal review assignment<\/p>\n\n\n\n
The content of an Appraisal Review report must be consistent with the<\/p>\n\n\n\n\n
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Standards Rule 3-2 identifies numerous assignment elements for an Appraisal Review Assignment. Which is NOT one of these?<\/p>\n\n\n\n
Standards Rule 1-4(c) includes the requirement for an appraiser to base projections of future rent or income potential and expenses on<\/p>\n\n\n\n
In a Market Value assignment, which is included in the requirements for Standards Rule 1-3?<\/p>\n\n\n\n
When Exposure Time is a component of the _________________<\/em><\/strong><\/em><\/strong> an appraiser must develop an opinion of reasonable exposure time<\/p>\n\n\n\n\n
Standards Rule 6-3 contains analysis steps regarding mass appraisal of<\/p>\n\n\n\n\n
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(T\/F) * For both appraisal reporting options permitted by Standard 8, the appraiser’s SUPPORT AND RATIONALE for the opinion of appropriate market or market level must be developed in the assignment must be STATED in the report<\/p>\n\n\n\n\n
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Under Standard 7, the concept of Highest and Best use is alternately examined in a _______________<\/em><\/strong><\/em><\/strong> based on potential sale of the property.<\/p>\n\n\n\n\n
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