The Jurisdictional Exception Rule applies when:
Correct Answer
D) Law or public policy precludes compliance with part of USPAP
Why this is correct: The Jurisdictional Exception Rule (USPAP) applies only when a specific law or public policy (e.g., a state statute or regulation) directly conflicts with a USPAP requirement. In that case, compliance with the conflicting part of USPAP is not required. The appraiser must disclose the exception in the report. Why the other choices are wrong: "A professional organization publishes conflicting guidance" is wrong because such guidance does not constitute law or public policy. "The client prefers a different methodology" is a scope of work decision, not a jurisdictional exception. "The assignment falls outside the appraiser's state" is wrong; USPAP applies regardless of location, though state laws also apply. Exam tip: Only a conflict with actual law or public policy triggers this rule. Always cite the specific conflicting authority in your report.
Why This Is the Correct Answer
Why this is correct: The Jurisdictional Exception Rule (USPAP) applies only when a specific law or public policy (e.g., a state statute or regulation) directly conflicts with a USPAP requirement. In that case, compliance with the conflicting part of USPAP is not required. The appraiser must disclose the exception in the report. Why the other choices are wrong: "A professional organization publishes conflicting guidance" is wrong because such guidance does not constitute law or public policy. "The client prefers a different methodology" is a scope of work decision, not a jurisdictional exception. "The assignment falls outside the appraiser's state" is wrong; USPAP applies regardless of location, though state laws also apply. Exam tip: Only a conflict with actual law or public policy triggers this rule. Always cite the specific conflicting authority in your report.
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:
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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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