A client-imposed requirement — 'use only comps from our approved list' — is best described as:
Correct Answer
C) An assignment condition to be tested against the credibility floor before acceptance
A client’s comparable-list restriction is an assignment condition to evaluate against the necessary scope. If it prevents credible results, modify the condition or decline/withdraw. It is not a legal jurisdictional exception and does not become acceptable merely through disclosure.
Why This Is the Correct Answer
Option C is correct because a client's approved-list comparable restriction is an assignment condition, and USPAP says an appraiser must not allow assignment conditions to limit the scope so much that results are not credible in the context of the intended use. The appraiser tests the restriction against that credibility standard before accepting. If it would prevent credible results, the appraiser seeks modification or declines or withdraws.
Why the Other Options Are Wrong
Option A: A perfectly normal engagement term that the appraiser simply follows as written
Option A is wrong because treating it as a perfectly normal engagement term that the appraiser simply follows as written skips the required credibility evaluation. Following it blindly could produce non-credible results.
Option B: A jurisdictional exception to the standards
Option B is wrong because a jurisdictional exception arises only when law or regulation precludes compliance with part of USPAP. A client's comparable list is not a law or regulation.
Option D: A hypothetical condition requiring disclosure
Option D is wrong because a hypothetical condition is a premise contrary to known facts used for analysis. A restriction on data sources is an assignment condition, and disclosing it does not by itself make it acceptable.
Conditions cannot cut credibility
Clients may set conditions, but no condition may cut the scope below what credible results require.
How to use: Use this when a client restriction on data or methods appears in a question.
Exam Tip
When a client restricts data or methods, look for an answer that weighs the restriction against credibility rather than one that simply complies or simply discloses.
Common Mistakes to Avoid
- -Following client restrictions without checking credibility
- -Calling a client requirement a jurisdictional exception
- -Believing disclosure alone cures a scope-limiting condition
Concept Deep Dive
Analysis
This question tests assignment conditions under the Scope of Work Rule. A client's restriction on which comparables may be used limits the scope of work. The appraiser must decide whether the restriction still allows credible results for the intended use.
Background Knowledge
Assignment conditions include assumptions, conditions, laws, regulations and other restrictions that affect scope of work. Client restrictions on data, inspection or methods are common. The appraiser remains responsible for ensuring the scope still produces credible results.
Real-World Application
A lender's portal requires comparables from an approved list that contains no sales from the subject's rural market. The appraiser explains that credible results need local sales and asks the lender to remove the restriction, ready to decline if it will not.
More USPAP Questions
Under USPAP, what are assignment results?
The certification required by Standards Rule 2-3 must be signed by:
Under 2024 USPAP, which statement correctly combines the requirements for an oral real property appraisal report and its workfile?
An appraiser accepts an assignment involving a property type the appraiser has valued once before, years ago. Competency requires:
A Certified General appraiser is asked to value a specialized industrial property for the first time. The appraiser knows a competency gap exists before agreeing to the assignment. What is required if the appraiser proceeds?
Under 2024 USPAP Standard 1, which listed assignment element must be identified in developing a real property appraisal?
An appraiser provided an appraisal of the same property for another client 18 months ago. No confidentiality obligation prevents disclosing the fact of that service. Before agreeing to a new assignment, the appraiser must:
According to USPAP, what is the primary purpose of the Ethics Rule?
An appraiser is asked to determine 'fair market value' for an assignment. According to USPAP, the appraiser should:
Which list gives the sections of the 2024 USPAP Ethics Rule?
People Also Study
Real Estate Market
13.6% of exam
Property Description
11.8% of exam
Land or Site Valuation
4.5% of exam
Sales Comparison Approach
16.4% of exam
Cost Approach
13.6% of exam