USPAP Practice Exam 2025 – Complete All-in-One Guide to Mastering Professional Appraisal Standards

Standards Rule 1-5 focuses on the necessity of analyzing agreements that pertain to the subject property in market value assignments. This rule emphasizes the importance of considering only those agreements that are in effect as of the effective date of the appraisal.

This is significant because the value of a property can be influenced by existing agreements, such as leases, sales agreements, or other binding contracts. By restricting the analysis to current agreements at the effective date, appraisers are guided to consider only relevant and applicable terms that can have a direct impact on market value assessments.

Analyzing outdated or non-binding agreements would not provide accurate insights into the property's current value and could lead to misleading conclusions. Thus, focusing on current agreements helps ensure a relevant and thorough analysis, which aligns with the principles of providing credible appraisal results.