When invoking a jurisdictional exception, an appraiser must:
Correct Answer
A) Clearly identify the law or regulation that requires the exception
When invoking a jurisdictional exception, the appraiser must clearly identify the specific law or regulation that necessitates departure from USPAP requirements. This disclosure allows users to understand why USPAP was not fully followed.
Why This Is the Correct Answer
Option A is correct because USPAP specifically requires that when invoking a jurisdictional exception, the appraiser must clearly identify and cite the specific law, regulation, or legal requirement that necessitates the departure from USPAP. This identification must be included in the appraisal report so users understand exactly why USPAP requirements were not followed. The disclosure ensures transparency and allows report users to evaluate the impact of the exception on the appraisal's credibility and reliability.
Why the Other Options Are Wrong
Option B: Get permission from the state appraisal board
State appraisal boards do not grant permission for jurisdictional exceptions. The exception is automatically available when there is a genuine conflict between USPAP and applicable law or regulation. The appraiser makes this determination independently and documents it appropriately in the report without needing prior approval from any regulatory body.
Option C: Only use it for federal assignments
Jurisdictional exceptions are not limited to federal assignments and can be invoked for any assignment where applicable law or regulation conflicts with USPAP requirements. This includes state, local, federal, or other regulatory requirements that may apply to specific types of appraisal assignments regardless of the client or assignment type.
Option D: File a formal request with the Appraisal Standards Board
The Appraisal Standards Board does not require formal requests for jurisdictional exceptions. These exceptions are built into USPAP and can be invoked by appraisers when appropriate legal conflicts exist. The ASB provides guidance on proper use but does not approve individual exceptions on a case-by-case basis.
ID the LAW
Remember 'ID the LAW' - when using a jurisdictional exception, you must IDentify the specific LAW or regulation that requires the exception. Just like showing ID to prove who you are, you must show the legal 'ID' that justifies your exception.
How to use: When you see jurisdictional exception questions, immediately think 'ID the LAW' and look for the answer choice that requires identifying or citing the specific legal requirement that necessitates the exception.
Exam Tip
Jurisdictional exception questions often include distractors about getting permission or approval - remember that no permission is needed, only proper identification and disclosure of the conflicting law or regulation.
Common Mistakes to Avoid
- -Thinking permission is required from regulatory bodies before invoking the exception
- -Believing jurisdictional exceptions only apply to federal assignments
- -Failing to specifically identify the conflicting law or regulation in the appraisal report
Concept Deep Dive
Analysis
A jurisdictional exception is a provision in USPAP that allows appraisers to depart from specific USPAP requirements when compliance would violate applicable law or regulation. This exception recognizes that appraisers must follow legal requirements that may conflict with USPAP standards. The exception requires specific disclosure and identification procedures to maintain transparency and professional accountability. It serves as a bridge between professional standards and legal compliance, ensuring appraisers can fulfill their legal obligations while maintaining ethical practice.
Background Knowledge
USPAP includes jurisdictional exception provisions to address situations where compliance with appraisal standards would violate applicable laws or regulations. These exceptions must be properly documented and disclosed to maintain professional transparency and allow report users to understand any departures from standard practice.
Real-World Application
An appraiser working on a federally-related transaction might encounter state regulations requiring specific language or procedures that conflict with USPAP requirements. The appraiser would invoke a jurisdictional exception, clearly stating in the report the specific state regulation that requires the departure from USPAP, allowing the report user to understand why standard procedures weren't followed.
More USPAP Questions
An extraordinary assumption must be:
Under the USPAP Competency Rule, which of the following is required before an appraiser may accept an assignment?
An appraiser is developing an appraisal for a bank loan and discovers that the property has environmental contamination that significantly affects value, but the lender specifically requests that this issue not be mentioned in the report. According to USPAP, the appraiser should:
A Summary Appraisal Report must contain enough information to:
According to USPAP's Ethics Rule, an appraiser must keep confidential information about the client and intended users confidential unless disclosure is required by:
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