When invoking a jurisdictional exception, an appraiser must:
Correct Answer
C) Clearly identify the law or regulation that requires the exception
Why this is correct: A jurisdictional exception applies when a law or regulation contradicts a USPAP requirement. USPAP requires the appraiser to clearly identify the specific law or regulation that creates the conflict, ensuring users understand the departure. Why the other choices are wrong: "Get permission from the state appraisal board" is not required; the appraiser invokes the exception based on the law. "Only use it for federal assignments" is false; it applies to any assignment where such a law governs. "File a formal request with the Appraisal Standards Board" is not a USPAP procedure. Exam tip: Jurisdictional exception = identify the specific conflicting law. It's about disclosure, not permission.
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
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
Which statement best defines a hypothetical condition under USPAP?
According to the Competency Rule, if an appraiser lacks the knowledge and experience to complete an assignment competently, which action is NOT acceptable?
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A hypothetical condition differs from an extraordinary assumption in that a hypothetical condition:
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The certification required by Standards Rule 2-3 must be signed by:
According to Standard 1, when developing an opinion of market value, an appraiser must analyze:
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