Appraisal - USPAP 2

Question 1

Content

Answer 1

5 rules
10 standards
Statements

Question 2

Rules - Ethics Rule

Answer 2

Conduct
Management (Fee issues, advertising)
Confidential

Question 3

Rules - Record Keeping Rule

Answer 3

5 years; Jurisdictional exception 2 years

Applies to appraisal, appraisal review, and consulting assignments

Question 4

Rules- Competency Rule

Answer 4

Pre-assignment & assignment conditions for knowledge & experience

Question 5

Rules - Scope of Work Rule

Answer 5

obligation related to problem identification, research and analysis

Question 6

Rules - Jurisdictional Exception Rule

Answer 6

preserves the balance of USPAP if a portion is con tray to law or public policy of a jurisdiction

Question 7

Standard 1 & 2

Answer 7

Real property Appraisal

1. Development
2. Reporting

Question 8

Standard 3

Answer 8

Appraisal Review

Development and Reporting

Question 9

Standard 4 & 5

Answer 9

Real Property Appraisal Consulting

4. Development
5. Reporting

Question 10

Standard 6

Answer 10

Mass Appraisal

Development and Reporting

Question 11

Standard 7 & 8

Answer 11

Personal Property Appraisal

7. Development
8. Reporting

Question 12

Standard 9 & 10

Answer 12

Business

9. Developement
10. Reporting

Question 13

Statement

Answer 13

Full weights of a Standard rule

Question 14

Scope of Work Rule

Why is proper disclosure Scope of Work important

Answer 14

Clients and intended users rely/understand on the assignment results 
-intended use
-intended users
-level of inspection
-level of analysis
-Type of data to be analyzed
NOT report option

Question 15

Retrospective Assignment

Answer 15

Competency Rule applies at the time of assignment rather than EFFECTIVE DATE

Question 16

Bias

Answer 16

Preference or inclination that precludes an appraiser’s impartiality (公平公正）

Question 17

Confidential Information

Answer 17

may be voided or modified to allow disclosure
1.State enforcement agencies
2.Third parties authorized by law
3.Authorized peer review (except violate law)
CANNOT BE DISCLOSED TO THE PROPERTY OWNER!

Question 18

Anonymous Client

Answer 18

1. Could be anonymous in the appraisal report
2. Client must be noted by name in the work file and a disclosure must be included in the report
3. The appraiser must know the identify of the client
4. INTENDED USE must always be known

Question 19

Ethic Rule

Answer 19

Promote preserve public trust
Net engage in criminal trust
Record Keeping
Confidential information can be disclosed

Question 20

Acceptance of assignment - assessed value

Answer 20

USPAP does not prohibit the appraiser’s fee being based on the owner’s estimated value, the assessed value, the pending sale price or any other amount outside the appraiser’s control

Question 21

State Licensing Agencies

Answer 21

empowered to discipline appraisers

Question 22

Scope of Work - Assignment Condition

Answer 22

assumptions:
1. extra ordinary assumption
2. hypothetical condition
3. Laws and regulations
4. Legislative and court-made law
5. Administrative rules and ordinances
DO NOT INCLUDE CHARACTERISTIC

Question 23

Development Standard

Answer 23

First: identify the problem to be solved

Question 24

Comp # requirement

Answer 24

none from USPAP

Question 25

Partial holding

Answer 25

USPAP allows (e.g. one-acre segment of a five-acre parcel)-must obtain data from reliable source for the intended use of the appraisal

Question 26

Standard 2-2

Answer 26

Report - citation of the definition

Question 27

Update of appraisal

Answer 27

a new assignment

Question 28

Recertification of Value

Answer 28

confirms whether the conditions of a prior opinion have been met, and thus does not change the effective date

Question 29

Restrict use report

Answer 29

client is the only intended user

Question 30

Standard 3 - signed certification

Answer 30

Reviewer who signs any part of a report or a letter of transmittal must also sign the certification

Question 31

Extraordinary Assumption

Answer 31

The appraiser’s inability to physically inspect site improvement (e.g. underground utilities)

Question 32

Scope of Work

Answer 32

Have to withdraw assignment if there is no relevant information available.
Can Modify condition or use an extraordinary assumption

Question 33

Standard 1-5

Answer 33

Analyze any current agreement of

Sale, option, or listing

Question 34

Provide Sales Data only

Answer 34

1. Appraisal practice with no performance standard or record keeping requirements
2. Still comply Definition, Preamble, Ethic Rule, Competency Rule, Jurisdictional rule and Statement

Question 35

Standard 1-3

Answer 35

To obtain credible results, to develop an opinion of highest and best use of real estate (market value)
*the concept of highest and best use is often not applicable with other types of value

Question 36

Standard 1-4

Answer 36

Sales comp- data must avaialble