Uniform Standards of Professional Appraisal Practice (USPAP) Practice Exam

What is a primary purpose of an appraisal review?

1. To approve the original appraisal conclusions

2. To provide feedback to the appraiser

3. To ensure compliance with USPAP

4. To establish a new standard for appraisals

The correct answer is: To ensure compliance with USPAP

The primary purpose of an appraisal review is to ensure compliance with USPAP (Uniform Standards of Professional Appraisal Practice). This framework establishes the ethical and performance standards for appraisal practice and seeks to promote consistency and quality in appraisals. An appraisal review involves evaluating the original appraisal to determine if it adheres to these established standards, practices, and methodologies. By ensuring compliance with USPAP, the review process helps protect the integrity of the appraisal profession and reinforces the credibility of appraisals in various contexts, such as lending, litigation, and other financial decision-making processes. This ongoing oversight is crucial for maintaining trust and reliability within the appraisal industry.