Form 2055; Terms;
American Society Appraiser; ehow; dispersion;
1 Which government organization typically adopts and implements the general zoning plans? Points: 0 Planning Commission City Council or the Board of Supervisors County Zoning Authority Local Agency Formation Commission (LAFCO)
2 The first test for highest and best use is to verify if the use is: Points: 0 economically feasible. physically possible. legally permitted. maximally productive.
3 Zeroscaping and xeriscaping are each used in specific climates for: Points: 10 retaining walls. water-efficient landscaping. assemblage. ingress.
4 Once a tract has been prepared for construction, it then becomes a: Points: 10 grade. plot. usable area. site.
5 Which of the following is a product of time, climate, and characteristics of the native plants and animals? Points: 0 Grading Topography Soil formation Plottage
6 Which of the following is not a typical type of lot? Points: 10 Key Lot Flag Lot Kidney Lot Cul-de-sac
7 Which of the following lot types is considered the least desirable type of lot due to the lack of privacy and visibility? Points: 10 T-intersection lot Interior lot Corner lotKey lot
8 Which of the following organizations has the responsibility of identifying Special Flood Hazard Areas? Points: 10 LZA - Local Zoning Authority FEMA – Federal Emergency Management Agency EPA - Environmental Protection Agency REO – Regional Environmental Office
9 Non-economic value is best estimated by: Points: 0 plottage. the four tests of highest and best use. a property’s fit within the community’s master plan. none of the above. There is no widely accepted method for estimating non-economic value. 10 Residential property in an area rezoned for commercial use is an example of a(n): Points: 10 conditional use.non-conforming use. illegal use. speculative use.
2 The first test for highest and best use is to verify if the use is: Points: 0 economically feasible. physically possible. legally permitted. maximally productive.
3 Zeroscaping and xeriscaping are each used in specific climates for: Points: 10 retaining walls. water-efficient landscaping. assemblage. ingress.
4 Once a tract has been prepared for construction, it then becomes a: Points: 10 grade. plot. usable area. site.
5 Which of the following is a product of time, climate, and characteristics of the native plants and animals? Points: 0 Grading Topography Soil formation Plottage
6 Which of the following is not a typical type of lot? Points: 10 Key Lot Flag Lot Kidney Lot Cul-de-sac
7 Which of the following lot types is considered the least desirable type of lot due to the lack of privacy and visibility? Points: 10 T-intersection lot Interior lot Corner lotKey lot
8 Which of the following organizations has the responsibility of identifying Special Flood Hazard Areas? Points: 10 LZA - Local Zoning Authority FEMA – Federal Emergency Management Agency EPA - Environmental Protection Agency REO – Regional Environmental Office
9 Non-economic value is best estimated by: Points: 0 plottage. the four tests of highest and best use. a property’s fit within the community’s master plan. none of the above. There is no widely accepted method for estimating non-economic value. 10 Residential property in an area rezoned for commercial use is an example of a(n): Points: 10 conditional use.non-conforming use. illegal use. speculative use.
Real Estate Appraisal Quiz 14
1 Suppose that the lender has asked the appraiser to use Form 2055 for a certain appraisal. What does this typically indicate? a. The lender would like the appraiser to use a narrative-style report for that appraisal. b. The lender has conclusively determined that only one appraisal approach would be relevant for that appraisal. c. The lender would like the appraiser to use only the sales comparison approach for that appraisal. d. The lender would like the appraiser to use only the approach that the appraiser has determined is most applicable for that appraisal.
2 For self-contained appraisal reports, information must be: a. stated. b. summarized. c. described. d. condensed.
3 Which of the following is true of a Summary Report? a. It contains less detail than a Restricted-Use Report, but more than a Self-Contained Report. b. It contains more detail than a Restricted-Use Report, but less than a Self-Contained Report. c. It contains less detail than both a Restricted-Use Report and a Self-Contained Report. d. It contains more detail than both a Restricted-Use Report and a Self-Contained Report.
4 The process of distilling value ranges into a single, supportable opinion is called: a. reporting. b. reconciliation. c. refining. d. recognition.
5 Which of the following may be presented as form reports, narrative-style reports, or oral reports? a. Restricted-Use Reports b. Summary Reports c. Self-Contained Reports d. All of the above
6 The reconciliation process: a. is a mathematical process which uses a strict set of rules. b. uses factual data and statistics, but is ultimately not a mathematical process. c. is the narrowing of a range of value estimates. d. is entirely arbitrary, and makes no use of factual data or statistics.
7 Appraisals are valid: a. on the date that the appraiser signs and dates the report. b. on the date that the appraisal client receives a copy of the report. c. for a 30-day period following the date on which the client receives a copy of the report. d. on the date that the appraiser visits a property and records his or her observations.
8 Forms like the Uniform Residential Appraisal Report (URAR) are usually: a. Restricted-Use Reports. b. Summary Reports. c. Self-Contained Reports. d. None of the above categories apply to the URAR report.
9 Which kind of report should be used only if it convincingly meets the client’s needs? a. Restricted-use report b. Summary report c. Self-contained report d. Form style report
10 When reconciling, the appraiser should: a. always give each appraisal approach equal weight. b. use averaging to determine what the end result should be. c. rely almost exclusively on the appraisal approach most applicable for the subject property. d. analyze all relevant data to determine a final value based on the applicable appraisal approaches.
1 Suppose that the lender has asked the appraiser to use Form 2055 for a certain appraisal. What does this typically indicate? a. The lender would like the appraiser to use a narrative-style report for that appraisal. b. The lender has conclusively determined that only one appraisal approach would be relevant for that appraisal. c. The lender would like the appraiser to use only the sales comparison approach for that appraisal. d. The lender would like the appraiser to use only the approach that the appraiser has determined is most applicable for that appraisal.
2 For self-contained appraisal reports, information must be: a. stated. b. summarized. c. described. d. condensed.
3 Which of the following is true of a Summary Report? a. It contains less detail than a Restricted-Use Report, but more than a Self-Contained Report. b. It contains more detail than a Restricted-Use Report, but less than a Self-Contained Report. c. It contains less detail than both a Restricted-Use Report and a Self-Contained Report. d. It contains more detail than both a Restricted-Use Report and a Self-Contained Report.
4 The process of distilling value ranges into a single, supportable opinion is called: a. reporting. b. reconciliation. c. refining. d. recognition.
5 Which of the following may be presented as form reports, narrative-style reports, or oral reports? a. Restricted-Use Reports b. Summary Reports c. Self-Contained Reports d. All of the above
6 The reconciliation process: a. is a mathematical process which uses a strict set of rules. b. uses factual data and statistics, but is ultimately not a mathematical process. c. is the narrowing of a range of value estimates. d. is entirely arbitrary, and makes no use of factual data or statistics.
7 Appraisals are valid: a. on the date that the appraiser signs and dates the report. b. on the date that the appraisal client receives a copy of the report. c. for a 30-day period following the date on which the client receives a copy of the report. d. on the date that the appraiser visits a property and records his or her observations.
8 Forms like the Uniform Residential Appraisal Report (URAR) are usually: a. Restricted-Use Reports. b. Summary Reports. c. Self-Contained Reports. d. None of the above categories apply to the URAR report.
9 Which kind of report should be used only if it convincingly meets the client’s needs? a. Restricted-use report b. Summary report c. Self-contained report d. Form style report
10 When reconciling, the appraiser should: a. always give each appraisal approach equal weight. b. use averaging to determine what the end result should be. c. rely almost exclusively on the appraisal approach most applicable for the subject property. d. analyze all relevant data to determine a final value based on the applicable appraisal approaches.
Please remember
1 An element of comparison is: a. the unit of measurement used when making adjustments. b. any aspect of a real estate transaction or any characteristic of a property that may affect the property’s sales price. c. the opposite of an arm’s-length transaction. d. the term used for the value determined in the verification and reconciliation part of the sales comparison approach.
2 The major benefit of the contingent valuation methodology, or survey method, is that it: a. can be used even when there is no sales data available. b. can quickly determine adjustment values using a personal computer. c. works best when distinct, quantifiable data can be identified. d. can determine the appropriate sequence of adjustments at the same time as the adjustment values.
3 _______________ can limit the usefulness and reliability of the sales comparison approach. a. Lack of active listings b. Lack of market data c. Pending sales d. Arm’s-length transactions
4 According to Fannie Mae, the gross adjustment percentage should not exceed _____% of the sales price of the comparable. a. 5 b. 10 c. 15 d. 25
5 According to Fannie Mae, a single line item adjustment should not exceed _____% of the sales price of the comparable. a. 5 b. 10 c. 15 d. 25
6 The sales comparison approach is most reliable in situations where: a. the subject property is highly unique. b. the market is rapidly changing. c. there are a sufficient number of arm’s-length sales transactions to indicate patterns within the market. d. there are a large number of pending sales so the appraiser can check the reasonableness of completed sales.
7 When reconciling the adjusted sales prices of the comparable properties, the appraiser should give the most weight to the comparable property: a. with the least amount of adjusting on a gross basis. b. with the fewest number of adjustments. c. that sold the most recently. d. Any of the above, depending on the appraiser’s reasoning and judgment.
8 ____________ is the idea that the sales prices of the comparables chosen for the appraisal should not all be higher than the value of the subject property, nor should they all be lower. a. Bracketing b. Millage c. Reconciliation d. Sale-resale
9 Which of the following is a source of market data? a. On-site sales office b. Appraiser office files c. Title companies d. All of the above
10 Flipping, a type of mortgage fraud, is a possible threat to the quality of an appraiser’s: a. abstraction method. b. contingent valuation methodology. c. gross rent multiplier technique. d. sale-resale analysis..
2 The major benefit of the contingent valuation methodology, or survey method, is that it: a. can be used even when there is no sales data available. b. can quickly determine adjustment values using a personal computer. c. works best when distinct, quantifiable data can be identified. d. can determine the appropriate sequence of adjustments at the same time as the adjustment values.
3 _______________ can limit the usefulness and reliability of the sales comparison approach. a. Lack of active listings b. Lack of market data c. Pending sales d. Arm’s-length transactions
4 According to Fannie Mae, the gross adjustment percentage should not exceed _____% of the sales price of the comparable. a. 5 b. 10 c. 15 d. 25
5 According to Fannie Mae, a single line item adjustment should not exceed _____% of the sales price of the comparable. a. 5 b. 10 c. 15 d. 25
6 The sales comparison approach is most reliable in situations where: a. the subject property is highly unique. b. the market is rapidly changing. c. there are a sufficient number of arm’s-length sales transactions to indicate patterns within the market. d. there are a large number of pending sales so the appraiser can check the reasonableness of completed sales.
7 When reconciling the adjusted sales prices of the comparable properties, the appraiser should give the most weight to the comparable property: a. with the least amount of adjusting on a gross basis. b. with the fewest number of adjustments. c. that sold the most recently. d. Any of the above, depending on the appraiser’s reasoning and judgment.
8 ____________ is the idea that the sales prices of the comparables chosen for the appraisal should not all be higher than the value of the subject property, nor should they all be lower. a. Bracketing b. Millage c. Reconciliation d. Sale-resale
9 Which of the following is a source of market data? a. On-site sales office b. Appraiser office files c. Title companies d. All of the above
10 Flipping, a type of mortgage fraud, is a possible threat to the quality of an appraiser’s: a. abstraction method. b. contingent valuation methodology. c. gross rent multiplier technique. d. sale-resale analysis..
1 Deferred maintenance usually results in: a. curable external obsolescence. b. curable physical deterioration. c. curable functional obsolescence. d. incurable physical deterioration.
2 What type of depreciation is generally not curable? a. Functional obsolescence b. Physical deterioration c. External obsolescence d. None of the above
3 Which of the following is a technique for estimating accrued depreciation by market extraction? a. Sale-resale analysis b. Paired sales analysis c. Extraction method d. All of the above
4 Which of the following methods is used when an appraiser estimates the loss in value for curable and incurable items of depreciation? a. Straight line b. Age/life c. Capitalized value d. Observed condition
5 A property’s effective age _______ its actual age. a. is always the same as b. is more years than c. is less years than d. may be more years or less years than
6 An outmoded room layout in a home is an example of: a. functional obsolescence. b. physical deterioration - curable. c. physical deterioration - incurable. d. external obsolescence.
7 Deterioration of building foundation, walls and ceilings is considered: a. short-lived curable. b. long-lived curable. c. short-lived incurable. d. long-lived incurable.
8 Which of the following is not a type of depreciation? a. Physical deterioration b. External obsolescence c. Accelerated depreciation d. Functional obsolescence
9 The simplest method used to compute depreciation is the: a. cost to cure method. b. capitalized value method. c. age-life or straight line method. d. sales comparison method.
10 When land value is added to the depreciated value of the improvements and the “as-is” value of site improvements, the resulting number is: a. the property’s potential gross improvement value. b. a value estimate for the subject property. c. the total property depreciation. d. the accrued depreciation minus remodeling appreciation.
2 What type of depreciation is generally not curable? a. Functional obsolescence b. Physical deterioration c. External obsolescence d. None of the above
3 Which of the following is a technique for estimating accrued depreciation by market extraction? a. Sale-resale analysis b. Paired sales analysis c. Extraction method d. All of the above
4 Which of the following methods is used when an appraiser estimates the loss in value for curable and incurable items of depreciation? a. Straight line b. Age/life c. Capitalized value d. Observed condition
5 A property’s effective age _______ its actual age. a. is always the same as b. is more years than c. is less years than d. may be more years or less years than
6 An outmoded room layout in a home is an example of: a. functional obsolescence. b. physical deterioration - curable. c. physical deterioration - incurable. d. external obsolescence.
7 Deterioration of building foundation, walls and ceilings is considered: a. short-lived curable. b. long-lived curable. c. short-lived incurable. d. long-lived incurable.
8 Which of the following is not a type of depreciation? a. Physical deterioration b. External obsolescence c. Accelerated depreciation d. Functional obsolescence
9 The simplest method used to compute depreciation is the: a. cost to cure method. b. capitalized value method. c. age-life or straight line method. d. sales comparison method.
10 When land value is added to the depreciated value of the improvements and the “as-is” value of site improvements, the resulting number is: a. the property’s potential gross improvement value. b. a value estimate for the subject property. c. the total property depreciation. d. the accrued depreciation minus remodeling appreciation.
Real Estate Appraisal Quiz 15
1 Which of the following is not a measure of dispersion? hint Page 455 Points: 0 range mode average deviation standard deviation
2 A group within a larger population would most accurately be described as: hint Page 451 Points: 10 a sample of the group. a variate from the group. at least the majority of the population. all of the above.
3 Which of the following is the correct formula for interest? hint Page 441 Points: 10 Interest = (Principal + Rate) / Time Interest = Principal + Rate x Time Interest = Principal + Rate + Time Interest = Principal x Rate x Time
4 The charge for the use of money is called: hint Page 441 Points: 10 a loan. the principal. interest. the denominator.
5 The top number in a fraction is called the: hint Page 433 Points: 10 principal. numerator. denominator. placeholder.
6 Which of the following is true of an acre? hint Page 448 Points: 10 It must be rectangular. It is measured in cubic feet. It is only used to measure tracts of agricultural land. It may be in any shape.
7 You have been given the following home prices: $160,000, $240,000, $260,000, $300,000. What would the median home price be for this set of home prices? hint Page 453 Points: 10 $140,000 $240,000 $250,000 $300,000
8 You have been given the following home prices: $160,000, $240,000, $260,000, $300,000. What would the mean home price be for this set of home prices? hint Page 452 Points: 10 $140,000 $240,000 $250,000 $960,000
9 To convert a fraction into a decimal, you must: hint Page 433 Points: 10 divide the top number by the bottom number. divide the bottom number by the top number. multiply the top number by the bottom number. multiply the bottom number by the top number.
10 Which of the following is a three-dimensional measurement? hint Page 444 Points: 10 Area Length Volume Radius
1 Which of the following is not a measure of dispersion? hint Page 455 Points: 0 range mode average deviation standard deviation
2 A group within a larger population would most accurately be described as: hint Page 451 Points: 10 a sample of the group. a variate from the group. at least the majority of the population. all of the above.
3 Which of the following is the correct formula for interest? hint Page 441 Points: 10 Interest = (Principal + Rate) / Time Interest = Principal + Rate x Time Interest = Principal + Rate + Time Interest = Principal x Rate x Time
4 The charge for the use of money is called: hint Page 441 Points: 10 a loan. the principal. interest. the denominator.
5 The top number in a fraction is called the: hint Page 433 Points: 10 principal. numerator. denominator. placeholder.
6 Which of the following is true of an acre? hint Page 448 Points: 10 It must be rectangular. It is measured in cubic feet. It is only used to measure tracts of agricultural land. It may be in any shape.
7 You have been given the following home prices: $160,000, $240,000, $260,000, $300,000. What would the median home price be for this set of home prices? hint Page 453 Points: 10 $140,000 $240,000 $250,000 $300,000
8 You have been given the following home prices: $160,000, $240,000, $260,000, $300,000. What would the mean home price be for this set of home prices? hint Page 452 Points: 10 $140,000 $240,000 $250,000 $960,000
9 To convert a fraction into a decimal, you must: hint Page 433 Points: 10 divide the top number by the bottom number. divide the bottom number by the top number. multiply the top number by the bottom number. multiply the bottom number by the top number.
10 Which of the following is a three-dimensional measurement? hint Page 444 Points: 10 Area Length Volume Radius
ad hoc committee formed for purpose of developing common appraisal standards which would
become USPAP = APPRSAISER ORG
not contributing factors led to need for regulation app professional?
different app regulation in state
actual factors == 1980 crisis + FIRREA apply to appraiser + value opinion not regulated
TAF non profit private org, no member = standard of prof app practice & Quali requrie
ASC app subcommiteed = fed agency = ensure it consistent with congress intent
USPAP Not law
executive branch reference USPAP in uniform relocation and assistance and RP acquision
policy act
+
office of management budgetOMB reference USPAP cause federal agencey to recognise USPAP
appraisal foundation = board of trustee [27 individ = 10 at large trustee elected by board
+ funding / Appointing/ overseeing AQB ASB ] + appr quali board [at least 5 appraiser in 3
yr terms/ 7-15 hour course] + app standard board [5-7 member;write amend interpret uspap ]
3 critical issues = creditble services + ethical and competent + public trust
common set of standard + mechanism to enforce standard = need for regu
8 us based app org + canada= uspap
==
app sponsor non profit serving app
affiliate sponsor = serviing interest in appraisal = user of services
each appoint 1 member to BOT
BOT create Industry Advisory council IAC to provide advice based on reports from chairs of
ASB and AQB
International valuation council IVC provide info to BOT ASB AQB
TAF formed SRAG state regulator advisory group as direct link to regulators who implement
the work of AQB and ASB
ARAG indentify disciplinary issues = 7 hr update course, address RP appraiser Quali
criteria
** education council of app foundation sporsor = adv council of app foundation encourage
high ethical standard throuhg cooperative effort to provide highest quailtiy uniform uspap
edu
** app foundation adv council TAFAC == comprise non profit + gov't age make recommendation
to board on major issues
IVC help promote global acceptance on app and valuation profession
ASC app subcommitee = ensure app who could expose US to finaancially loss are sufficeintly
trained and tested to ensure competency and independent judgment
ASC = 5 fed banking agencies [FRB + OCC + OTS + FDIC + NCUA] + HUD
asc NOT PART OF APP FOUNDATION has authority from FIRREA [saving and loan bailout bill] to
ovesee app foundation and AQBN AND 3 ASB + maintain national registry of licensed and
certified appraisers + give grant to app foundation , make annual report to congress
title xi of FIRREA set up app regulatory sys and app foundation, protected by rquireing
appraisal used in federally related transaction meet guidelines
ASC was estabilished within federal financial institutions exam council FFIEC
FFIEC make recommend to promote uniformity in supervision of fiancial institutions
each state app regu agency is responsible for certify and licensing app and supervising app
activities = fed law
==
definitions preamble rule standards standarad rules + statement on appr standards
rule = ethics rule/ competency rule/ scope of work rule/ juridictional exception rule
preamble stipulate app deve and communicate analysis opinions and conclusion to user of services in a manner that is MEANINGFUL and not misleading
ethical and performance obligations = addressed through uspap definitions, rules, standard, sr adn statemetn
1 preamber in a manner meaningful and not misleading
2 to promote pubic trust in practice
3 definiion = contain terms specific meaning in uspap
ethics rule contain ethic obli and probit generally apply to indiv acting in role of appraiser = conduct + management+ confid + record keeping
competency rule = general requirement directed to performance while in appraiser
ethics rule and CR work in CONCERT,
scope of WR = each appraisal, app review, app consulting assignment ,
= identify prob to be solved + determine and perform scope of work to deve credible assignment results + disclose scope of work in reprt
JER apply where law take precedence over uspap, only particular part of uspap become void in specific assignment, not an option / choice that can made by appraiser
3 why compliance with ER and CR required? public trust requrie ER andCR
\
7 development of pp app focuses on opinion of value in specified mkt / specified mkt level rather than ? == h&B use
which standard expresses cert in compliance with standard is not intended to disturb an elected appointed assessor work
plan? == 6 6 6
primary purpose of app consulting assignment ? BE to develop appraisal / appraisal review == CAN NOT
THERE are ? DEFINED appraisal consulting report options === NO
WHICH term is defined by uspap as a math expression of how supply and demand factors interact in mkt == MASS APPRAISAL
MODEL
PARTNERSHIP interest == business equity in appraisal of intangible property
According to 8 appraisal consulting report ? be communicated ORALLY == may may may
can the source of value opinon used in appraisal consulting assignment come from source other than counsulting app? ==
YES
WHICH is defined as act/ process of developing analysis recommendation opion to solve problem where an opinion of value
is component of analysis leading to assignment results == appraisal consulting
intangible assets CAN NOT be physically inspected
==
for appraisal business enterprise of intangible asset only 2 reporting
Under standard 7 concept of H&B use is alternatively examined in a ? based on potential sale of prop == SPECIFIED MKT OR
AT SPECIFIED MKT LEVEL
When appraising pp standard 7-2 e obligate app to identify item and identify characteristics sufficient to establish the
? of the item within its use == RELATIVE QUALITY
according to 10-2 reporting result of app of business enterprise of intangible asset NO DISCUSS of ? concept typically
does not apply == HIGHEST AND BEST USE
When appraiser determine that opinion of value should be based on liquidation of business interest, the interest being
appraised must be == MARKETABLE AND/ OR ABLE TO BE liquidated
ANY tangible prop not rp == p p
in an appraisal of pp, prior sale of subject property must be analysed for what period of time? == reasonable and
applicable time period
according to 7-3b appraiser define and analyse the ? consistent with type and definition == APPROPRIATE MARKET
An oral pp app rept msut address substantive matters set forth in 8-2b for ? app rept ? == summary
pp app repot can be prepared using == SC / sU / RU app rept
in a self-contained app rept for pp, support and rationale for app opinion of app mkt / mkt level === DESCRIBED
RATHER THAN TYPE OF value that must be identified in other type of assigment 9-2 require app to identify ? of value ==
STANDARD
BUSINESS ENTERPREISE == entity pursuing economic activity
which intangible? == patents
in appraisal of business / intangible asset/ past sales / capital stock or other ownership interest must be analysed
when necessary for credible assignment result for what period of time? == NO SPECIFIED TIME PERIOD
FOR Appraisal business enterprise of intangible asset 2 reporting options: ? report and R use app === appraisal
standard 6-8j require mass app report, app must ? scope of work used to develop app === describe SPECIFIED MKT OR AT
SPECIFIED MKT LEVEL
in an appriaser's final reconcilation analysis, 6-7b require she employ recognised mass appraisal ? to ensure standard
of accuracy are maintained == testing procedures and tech
in a mass appraisal certifcation ? an elected / appointed assessor's work plans / oaths in office == is not intended to
disturb
in a appraisal for ad valorem taxation purpose when only 1 property is subject of app assignment == standard 1 1 1
subject of mass appraisal == CAN BE REAL / PP
MASS appraisal is process of valuing ? properties == universe of
which rule in uspap 6-2c take precedence and apply about legal def of mkt value === jer jurisdictional exception rule
Standard rule 6-4b obligate appraiser to employ recognised technique for == specifying property valuation models
standard rule 6-3 contain alalysis steps regarding mass appraisal == of rp pp
standards 6-4c app emply recorgnised techniques for ? mass appraisal methods == CALIBRATING
3-1 contain lang regarding == basic requirement for competency and diligence
3-2 reviewer MUST NOT:
A allow internde use / client objective to cause BIASED
b ADVOCATE CLIENT objective
3-2ab review because
a QC / Audit/ Qualification/ Confirmation
==========
According to standard rule 4-2h if opinion of value used in real property consulting assignment is from source other
than consulting appraiser, assignment may INCLUDE ? == REVIEW prepared in compliance with standard 3
MISREPRESNETING purpose of assignment performed under 4 violate ? == ETHICS
THE opinion of value being used as componenet of analysis leading to app consulting assignment conclusion == could be
developed by consulting appraisser / could come from another source
which would NOT BE an example of appraisal consulting assignment ? == value opinon of COMPLETED DEVELOPMENT METHOD
standard rule 4-2h obligates an app performing Real property app consulting assignment to ensure that any opinion of
value being used as component of analysis was developed in compliance with == 1 1 1
Standard rule 4-1 requires app to NOT RENDER real property appraisal consulting services == in careless / negligent
manner
according to standard rule 4-2 if an opinion of value used in RP consulting assignment is from a source other than
consulting app assignment may include ?? of that appraisal == review prepared in complaince with standard 3
standards rule 5-1 requires real property app consulting reports to be ? to enable Iusers to understand and follow the
reasoninng through each step analysis == [not in writing] sufficiently comprehensive
under standard 5, in an appraisal consulting assignment appraiser must ? each analysis, opinion and conclusion in a
manner that is not misleading == communicate
standard rule 5-3 addresses an appraiser's obligation ? in a real property appraisal consulting report == to include a
signed certification
under standard 5-2 real property appraisal consulting report ? == combines minimum levels of stating and summarizing
info
according to standard rule 5-2g if consulting appraiser developed the value opinion used real property appraisal
consulting assignment, info must be reported in complaince with === standards rule 2-2a b c
when developing and communicating the results of a real property appraisal consulting assignment, which statement is
TRUE?? === MORE THAN 1 DEVELOPMENT AND reporting standard may apply in the assignment
oral app report == must address substantive matters set forth in standard rule 3-5
content of app review report must be consistent with == intended use of app review
when the scope of work in app review includes the reviewer developing his own opinion / conclusion , the reviewr is NOT
REQUIRED to == REPLICATE the steps
reviewer must NOT SIGN the work under review unless he ?? == intend to accept responsibility as a COSIGNER of that work
the subject of an ap review may be entire report, portion, workfile or == COMBINATION OF THESE
According to standard rule 3-2 when identifying purpose of appraisaal, reviewer must determine if assignment include
reviewer ?? == developing his own opinions / conclusion
when scope of work in app review includes reviewer developing his own opinion / conclusion/ reviewer is not required to
?? ==
=========
CHIRSTOPHER review and sign == accept responsibility, content, ALL ELEMEMT
in a review of app report, when opinion and conclusion are expressed by review that occur / disagree with opinion and
coclusion in work being reviewed, those opinions and conclusion must ?? == BE DEVELOPED IN ACCORDANCE with applicaable
deve standard
data and analysis provide by reviewer to support diff opinion / conclusion in app review == summary app
standard rule 3-4 covers the ? requirement that apply to app review assignment === GENERAL REPORT
According to standard rule 3-5d under what circumstance must a reviewer identify app who perform work being reviewed App
review report == ALWAYS, UNLESS IDENTITY IS WITHHELD by client
standard rule 3-5 expands on the requirement of the ? == minimum report content
3-2 identify numerous assignment element for ARA which NOT?? == MINIMUM REPORT CONTENT
3 app perform app review == reviewer
standard 3-1 contain lang regarding == basic requirement for competency and dilegence
use an ? is required legal purposes for purpose of reasonable analysis / comparison =====HC
during app review assignment, marty included an EA extraordinary assumption == there is a reasonable basis for EA
extraoridnary assumption
andy is begining app review. andy must apply app review method and tech necessary for credible assignment results which
DOES NOT INCLUDE- == performing the review with PERFECTION
SArah identify work under review NOT INCLUDE ?? == credit of app in work under review
reviewer ?? CLIENT OBJECTIVE == must not
JENNIFER is review and disagree some analysis == deve REASONS FOR ANY DISAGREEMENT
CARLY is developing her own opinion of value app review, she must comply with the ? applicable to deve of her opinion ==
standard
when review app is developing his own opinion or or conclusion, EFFECTIVE DATE == SAME / DIFF
==========
3-2g obligation in review assign == identify HC necessary? == only legal/ reasonable/ comparison purpose
/ use HC in credible analysis/ comply with disclosure req
3-2h scope of work rule == deve app review, reviewer must
if should have been considered by origianl app CAN BE USE == INFO not avail to orig app in NORMAL COURSE MAY be used by
reviewer BUT NOT USE IN DEVE OPINION AS TO QUALITY OF WORK
3-3 apply app review method and tech to produce credible result == review process can address ADEQUACY of analysis /
adequacy of report of analysis
3-3C REquirement apply if reviewer own opinion apply : a concurr with O n C in work under review
b DIFFER from O n C opinon and conclusion
Scope of work / effective date /
3 SUBJECT OF REVIEW == entire report / portion of report / workfile
3 does not dictate FORM, FORMAT / STYLE OF app review report
1 6 7 9 == APPLY REVIEWER OPinion of value for property that is subject of ARA
3 == apply to reviewer opinon of quality for work that is subjecto of ARA
4 == apply to reviewer ANALYSIS, RECOMMEN / OPINION for consuliting problem
standard 4 5 == requirement for development and reporting RE appraisal consulting assignment
6 == est requirement for deve and reporting MASS APPRAISAL
7 8 == PERSONAL PROPERTY
9 10 == BUSINESS / INTANGIBLE ASSET APPRAISAL
4-2 similar 1-2 ? == identify client and Iuser/ identify uses
mass appraisal = process of valuing universe of properties as of given date using standard methodology, employing comon
data, and allowing for statistical testing
formal development of model in statement / equation == model specification
calibration == process of analysing sets of property and mkt data to determine specific parameters of model eg multiple
linear regress/ non linear regression / adaptive estimation
VALUE site methods / tech == sale comparison / allocation meth/ abstraction meth/ cap of ground rent/ land residual tech
==
uspap appraiser can apprasie JEWELREY TOO
FURNISHING , artwork antique, gems jewelry, collectible, machinery and equipment and all tangible property not classed
as rp
7 ==1
8 SIMIAR 2 == A SELF CONTAINED APP RPT/ B SUMMARY APP RPT / C RESTRICTED USE APP REPT
10-2 ONLY 2 REPORTING OPTIONS == app report / restricted use app rept [client must be the ONLY INTENDED USER]
NO REFERENCE TO PERSONAL INSPECTION == not possible to inspect intangible assets
become USPAP = APPRSAISER ORG
not contributing factors led to need for regulation app professional?
different app regulation in state
actual factors == 1980 crisis + FIRREA apply to appraiser + value opinion not regulated
TAF non profit private org, no member = standard of prof app practice & Quali requrie
ASC app subcommiteed = fed agency = ensure it consistent with congress intent
USPAP Not law
executive branch reference USPAP in uniform relocation and assistance and RP acquision
policy act
+
office of management budgetOMB reference USPAP cause federal agencey to recognise USPAP
appraisal foundation = board of trustee [27 individ = 10 at large trustee elected by board
+ funding / Appointing/ overseeing AQB ASB ] + appr quali board [at least 5 appraiser in 3
yr terms/ 7-15 hour course] + app standard board [5-7 member;write amend interpret uspap ]
3 critical issues = creditble services + ethical and competent + public trust
common set of standard + mechanism to enforce standard = need for regu
8 us based app org + canada= uspap
==
app sponsor non profit serving app
affiliate sponsor = serviing interest in appraisal = user of services
each appoint 1 member to BOT
BOT create Industry Advisory council IAC to provide advice based on reports from chairs of
ASB and AQB
International valuation council IVC provide info to BOT ASB AQB
TAF formed SRAG state regulator advisory group as direct link to regulators who implement
the work of AQB and ASB
ARAG indentify disciplinary issues = 7 hr update course, address RP appraiser Quali
criteria
** education council of app foundation sporsor = adv council of app foundation encourage
high ethical standard throuhg cooperative effort to provide highest quailtiy uniform uspap
edu
** app foundation adv council TAFAC == comprise non profit + gov't age make recommendation
to board on major issues
IVC help promote global acceptance on app and valuation profession
ASC app subcommitee = ensure app who could expose US to finaancially loss are sufficeintly
trained and tested to ensure competency and independent judgment
ASC = 5 fed banking agencies [FRB + OCC + OTS + FDIC + NCUA] + HUD
asc NOT PART OF APP FOUNDATION has authority from FIRREA [saving and loan bailout bill] to
ovesee app foundation and AQBN AND 3 ASB + maintain national registry of licensed and
certified appraisers + give grant to app foundation , make annual report to congress
title xi of FIRREA set up app regulatory sys and app foundation, protected by rquireing
appraisal used in federally related transaction meet guidelines
ASC was estabilished within federal financial institutions exam council FFIEC
FFIEC make recommend to promote uniformity in supervision of fiancial institutions
each state app regu agency is responsible for certify and licensing app and supervising app
activities = fed law
==
definitions preamble rule standards standarad rules + statement on appr standards
rule = ethics rule/ competency rule/ scope of work rule/ juridictional exception rule
preamble stipulate app deve and communicate analysis opinions and conclusion to user of services in a manner that is MEANINGFUL and not misleading
ethical and performance obligations = addressed through uspap definitions, rules, standard, sr adn statemetn
1 preamber in a manner meaningful and not misleading
2 to promote pubic trust in practice
3 definiion = contain terms specific meaning in uspap
ethics rule contain ethic obli and probit generally apply to indiv acting in role of appraiser = conduct + management+ confid + record keeping
competency rule = general requirement directed to performance while in appraiser
ethics rule and CR work in CONCERT,
scope of WR = each appraisal, app review, app consulting assignment ,
= identify prob to be solved + determine and perform scope of work to deve credible assignment results + disclose scope of work in reprt
JER apply where law take precedence over uspap, only particular part of uspap become void in specific assignment, not an option / choice that can made by appraiser
3 why compliance with ER and CR required? public trust requrie ER andCR
\
7 development of pp app focuses on opinion of value in specified mkt / specified mkt level rather than ? == h&B use
which standard expresses cert in compliance with standard is not intended to disturb an elected appointed assessor work
plan? == 6 6 6
primary purpose of app consulting assignment ? BE to develop appraisal / appraisal review == CAN NOT
THERE are ? DEFINED appraisal consulting report options === NO
WHICH term is defined by uspap as a math expression of how supply and demand factors interact in mkt == MASS APPRAISAL
MODEL
PARTNERSHIP interest == business equity in appraisal of intangible property
According to 8 appraisal consulting report ? be communicated ORALLY == may may may
can the source of value opinon used in appraisal consulting assignment come from source other than counsulting app? ==
YES
WHICH is defined as act/ process of developing analysis recommendation opion to solve problem where an opinion of value
is component of analysis leading to assignment results == appraisal consulting
intangible assets CAN NOT be physically inspected
==
for appraisal business enterprise of intangible asset only 2 reporting
Under standard 7 concept of H&B use is alternatively examined in a ? based on potential sale of prop == SPECIFIED MKT OR
AT SPECIFIED MKT LEVEL
When appraising pp standard 7-2 e obligate app to identify item and identify characteristics sufficient to establish the
? of the item within its use == RELATIVE QUALITY
according to 10-2 reporting result of app of business enterprise of intangible asset NO DISCUSS of ? concept typically
does not apply == HIGHEST AND BEST USE
When appraiser determine that opinion of value should be based on liquidation of business interest, the interest being
appraised must be == MARKETABLE AND/ OR ABLE TO BE liquidated
ANY tangible prop not rp == p p
in an appraisal of pp, prior sale of subject property must be analysed for what period of time? == reasonable and
applicable time period
according to 7-3b appraiser define and analyse the ? consistent with type and definition == APPROPRIATE MARKET
An oral pp app rept msut address substantive matters set forth in 8-2b for ? app rept ? == summary
pp app repot can be prepared using == SC / sU / RU app rept
in a self-contained app rept for pp, support and rationale for app opinion of app mkt / mkt level === DESCRIBED
RATHER THAN TYPE OF value that must be identified in other type of assigment 9-2 require app to identify ? of value ==
STANDARD
BUSINESS ENTERPREISE == entity pursuing economic activity
which intangible? == patents
in appraisal of business / intangible asset/ past sales / capital stock or other ownership interest must be analysed
when necessary for credible assignment result for what period of time? == NO SPECIFIED TIME PERIOD
FOR Appraisal business enterprise of intangible asset 2 reporting options: ? report and R use app === appraisal
standard 6-8j require mass app report, app must ? scope of work used to develop app === describe SPECIFIED MKT OR AT
SPECIFIED MKT LEVEL
in an appriaser's final reconcilation analysis, 6-7b require she employ recognised mass appraisal ? to ensure standard
of accuracy are maintained == testing procedures and tech
in a mass appraisal certifcation ? an elected / appointed assessor's work plans / oaths in office == is not intended to
disturb
in a appraisal for ad valorem taxation purpose when only 1 property is subject of app assignment == standard 1 1 1
subject of mass appraisal == CAN BE REAL / PP
MASS appraisal is process of valuing ? properties == universe of
which rule in uspap 6-2c take precedence and apply about legal def of mkt value === jer jurisdictional exception rule
Standard rule 6-4b obligate appraiser to employ recognised technique for == specifying property valuation models
standard rule 6-3 contain alalysis steps regarding mass appraisal == of rp pp
standards 6-4c app emply recorgnised techniques for ? mass appraisal methods == CALIBRATING
3-1 contain lang regarding == basic requirement for competency and diligence
3-2 reviewer MUST NOT:
A allow internde use / client objective to cause BIASED
b ADVOCATE CLIENT objective
3-2ab review because
a QC / Audit/ Qualification/ Confirmation
==========
According to standard rule 4-2h if opinion of value used in real property consulting assignment is from source other
than consulting appraiser, assignment may INCLUDE ? == REVIEW prepared in compliance with standard 3
MISREPRESNETING purpose of assignment performed under 4 violate ? == ETHICS
THE opinion of value being used as componenet of analysis leading to app consulting assignment conclusion == could be
developed by consulting appraisser / could come from another source
which would NOT BE an example of appraisal consulting assignment ? == value opinon of COMPLETED DEVELOPMENT METHOD
standard rule 4-2h obligates an app performing Real property app consulting assignment to ensure that any opinion of
value being used as component of analysis was developed in compliance with == 1 1 1
Standard rule 4-1 requires app to NOT RENDER real property appraisal consulting services == in careless / negligent
manner
according to standard rule 4-2 if an opinion of value used in RP consulting assignment is from a source other than
consulting app assignment may include ?? of that appraisal == review prepared in complaince with standard 3
standards rule 5-1 requires real property app consulting reports to be ? to enable Iusers to understand and follow the
reasoninng through each step analysis == [not in writing] sufficiently comprehensive
under standard 5, in an appraisal consulting assignment appraiser must ? each analysis, opinion and conclusion in a
manner that is not misleading == communicate
standard rule 5-3 addresses an appraiser's obligation ? in a real property appraisal consulting report == to include a
signed certification
under standard 5-2 real property appraisal consulting report ? == combines minimum levels of stating and summarizing
info
according to standard rule 5-2g if consulting appraiser developed the value opinion used real property appraisal
consulting assignment, info must be reported in complaince with === standards rule 2-2a b c
when developing and communicating the results of a real property appraisal consulting assignment, which statement is
TRUE?? === MORE THAN 1 DEVELOPMENT AND reporting standard may apply in the assignment
oral app report == must address substantive matters set forth in standard rule 3-5
content of app review report must be consistent with == intended use of app review
when the scope of work in app review includes the reviewer developing his own opinion / conclusion , the reviewr is NOT
REQUIRED to == REPLICATE the steps
reviewer must NOT SIGN the work under review unless he ?? == intend to accept responsibility as a COSIGNER of that work
the subject of an ap review may be entire report, portion, workfile or == COMBINATION OF THESE
According to standard rule 3-2 when identifying purpose of appraisaal, reviewer must determine if assignment include
reviewer ?? == developing his own opinions / conclusion
when scope of work in app review includes reviewer developing his own opinion / conclusion/ reviewer is not required to
?? ==
=========
CHIRSTOPHER review and sign == accept responsibility, content, ALL ELEMEMT
in a review of app report, when opinion and conclusion are expressed by review that occur / disagree with opinion and
coclusion in work being reviewed, those opinions and conclusion must ?? == BE DEVELOPED IN ACCORDANCE with applicaable
deve standard
data and analysis provide by reviewer to support diff opinion / conclusion in app review == summary app
standard rule 3-4 covers the ? requirement that apply to app review assignment === GENERAL REPORT
According to standard rule 3-5d under what circumstance must a reviewer identify app who perform work being reviewed App
review report == ALWAYS, UNLESS IDENTITY IS WITHHELD by client
standard rule 3-5 expands on the requirement of the ? == minimum report content
3-2 identify numerous assignment element for ARA which NOT?? == MINIMUM REPORT CONTENT
3 app perform app review == reviewer
standard 3-1 contain lang regarding == basic requirement for competency and dilegence
use an ? is required legal purposes for purpose of reasonable analysis / comparison =====HC
during app review assignment, marty included an EA extraordinary assumption == there is a reasonable basis for EA
extraoridnary assumption
andy is begining app review. andy must apply app review method and tech necessary for credible assignment results which
DOES NOT INCLUDE- == performing the review with PERFECTION
SArah identify work under review NOT INCLUDE ?? == credit of app in work under review
reviewer ?? CLIENT OBJECTIVE == must not
JENNIFER is review and disagree some analysis == deve REASONS FOR ANY DISAGREEMENT
CARLY is developing her own opinion of value app review, she must comply with the ? applicable to deve of her opinion ==
standard
when review app is developing his own opinion or or conclusion, EFFECTIVE DATE == SAME / DIFF
==========
3-2g obligation in review assign == identify HC necessary? == only legal/ reasonable/ comparison purpose
/ use HC in credible analysis/ comply with disclosure req
3-2h scope of work rule == deve app review, reviewer must
if should have been considered by origianl app CAN BE USE == INFO not avail to orig app in NORMAL COURSE MAY be used by
reviewer BUT NOT USE IN DEVE OPINION AS TO QUALITY OF WORK
3-3 apply app review method and tech to produce credible result == review process can address ADEQUACY of analysis /
adequacy of report of analysis
3-3C REquirement apply if reviewer own opinion apply : a concurr with O n C in work under review
b DIFFER from O n C opinon and conclusion
Scope of work / effective date /
3 SUBJECT OF REVIEW == entire report / portion of report / workfile
3 does not dictate FORM, FORMAT / STYLE OF app review report
1 6 7 9 == APPLY REVIEWER OPinion of value for property that is subject of ARA
3 == apply to reviewer opinon of quality for work that is subjecto of ARA
4 == apply to reviewer ANALYSIS, RECOMMEN / OPINION for consuliting problem
standard 4 5 == requirement for development and reporting RE appraisal consulting assignment
6 == est requirement for deve and reporting MASS APPRAISAL
7 8 == PERSONAL PROPERTY
9 10 == BUSINESS / INTANGIBLE ASSET APPRAISAL
4-2 similar 1-2 ? == identify client and Iuser/ identify uses
mass appraisal = process of valuing universe of properties as of given date using standard methodology, employing comon
data, and allowing for statistical testing
formal development of model in statement / equation == model specification
calibration == process of analysing sets of property and mkt data to determine specific parameters of model eg multiple
linear regress/ non linear regression / adaptive estimation
VALUE site methods / tech == sale comparison / allocation meth/ abstraction meth/ cap of ground rent/ land residual tech
==
uspap appraiser can apprasie JEWELREY TOO
FURNISHING , artwork antique, gems jewelry, collectible, machinery and equipment and all tangible property not classed
as rp
7 ==1
8 SIMIAR 2 == A SELF CONTAINED APP RPT/ B SUMMARY APP RPT / C RESTRICTED USE APP REPT
10-2 ONLY 2 REPORTING OPTIONS == app report / restricted use app rept [client must be the ONLY INTENDED USER]
NO REFERENCE TO PERSONAL INSPECTION == not possible to inspect intangible assets
