Uniform Standards of Professional Appraisal Practice ethics and competency rules tested on appraisal licensing exams.
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- What are the four main components of USPAP?
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Preamble, Ethics Rule, Competency Rule, and Standards 1 through 10- Who established the Uniform Standards of Professional Appraisal Practice?
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The Appraisal Foundation- Define market value according to USPAP.
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The most probable price a property should bring in a competitive and open market under all conditions requisite to a fair sale- What is the primary purpose of the Ethics Rule?
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Establish standards of professional conduct, including integrity, objectivity, independence, and impartiality- True or false: An appraiser can accept a fee that is contingent on the appraisal's value conclusion.
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False. The Ethics Rule prohibits contingent or undisclosed fees.- What must an appraiser do if they discover a conflict of interest?
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Disclose all material facts related to the conflict that could affect the appraisal or the appraiser's objectivity- What is the main requirement of the Competency Rule?
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An appraiser must be competent to perform an assignment or must decline the assignment or become competent before proceeding- What must an appraiser document to demonstrate competency for an assignment?
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Education, experience, and expertise specific to the property type and appraisal problem presented- What is the scope of work in an appraisal assignment?
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The extent to which the appraisal problem will be identified, researched, and analyzed by the appraiser- What three approaches to value does Standard 1 typically address?
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Sales Comparison Approach, Cost Approach, and Income Approach- What must an appraiser do if they exclude one of the three approaches to value?
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Provide an explanation and justification in the appraisal report for why that approach is not applicable- What is market analysis in the context of appraisal?
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Systematic investigation and analysis of demand and supply factors affecting the subject property's value- What must always be included in an appraisal report under Standard 1?
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A clear statement of the appraisal problem, the purpose of the appraisal, and the appraiser's opinion of value- What is a Limited Appraisal under Standard 1?
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An appraisal where the scope of work is intentionally limited compared to what would otherwise be appropriate for the assignment- What is Standard 2 in USPAP?
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Real Property Appraisal - Reporting (addresses the communication of appraisal results)
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