A state statute governing eminent-domain appraisals conflicts directly with a specific USPAP requirement. What does USPAP provide for this situation?
Correct Answer
B) The Jurisdictional Exception Rule sets aside only the conflicting part
Why this is correct: The Jurisdictional Exception Rule states that if a law or public policy directly conflicts with a USPAP requirement, only the conflicting part of USPAP is set aside. The appraiser must comply with the law and disclose the exception in the report. Why the other choices are wrong: The appraiser does not have to decline all work. USPAP does not always override state law; the exception applies. The appraiser cannot choose based on payment. Exam tip: When law and USPAP clash, follow the law, disclose the exception, and apply the rest of USPAP.
Why This Is the Correct Answer
Why this is correct: The Jurisdictional Exception Rule states that if a law or public policy directly conflicts with a USPAP requirement, only the conflicting part of USPAP is set aside. The appraiser must comply with the law and disclose the exception in the report. Why the other choices are wrong: The appraiser does not have to decline all work. USPAP does not always override state law; the exception applies. The appraiser cannot choose based on payment. Exam tip: When law and USPAP clash, follow the law, disclose the exception, and apply the rest of USPAP.
More USPAP Questions
Which type of appraisal report may contain the appraiser's analyses, opinions, and conclusions but is intended for use by the client only?
How long must an appraiser retain the workfile for an appraisal assignment under USPAP?
If an appraiser uses a hypothetical condition that the subject property is 10% larger than it actually is, this must be:
Under Standard 1, when developing a real property appraisal, an appraiser must:
An appraiser accepts an assignment to appraise a specialized industrial property but has never appraised this property type before. To comply with the Competency Rule, the appraiser:
According to the Scope of Work Rule, the scope of work must be appropriate to the:
According to Standard 1, when developing an opinion of market value, an appraiser must analyze:
A lender emails: 'We need at least $450,000 to make this loan work — can you take the assignment?' Accepting on that basis is:
An appraiser is developing an opinion of market value for a 20-unit apartment building. The appraiser finds three comparable sales with the following information: Sale 1: 18 units, sold for $1,800,000; Sale 2: 22 units, sold for $2,200,000; Sale 3: 24 units, sold for $2,280,000. What is the average price per unit for these comparables?
In developing a scope of work, an appraiser must consider all of the following factors EXCEPT:
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