USPAP Practice Exam 2025 – Comprehensive Test Prep

The statement regarding USPAP compliance that is true when mandated by federal law is that no local law can create a jurisdictional exclusion. This means that if federal law requires compliance with USPAP, it supersedes any local laws that might attempt to create exceptions or exclusions.

Jurisdictional exclusions refer to situations where a particular appraiser or appraising process is exempt from adhering to certain aspects of USPAP due to legal requirements or circumstances identified within specific laws. Since federal law is the highest level of law applicable, it remains dominant over local regulations. Therefore, local laws cannot establish conditions that would exclude compliance with USPAP when federal law mandates it.

In contrast, other options discuss the relationship between state, local, and federal laws. They imply scenarios that do not hold true under the framework of federal law, emphasizing that when federal law dictates, it cannot be overridden by state or local laws.