A lender asks for an exterior-only 'drive-by' appraisal. This request is:
Correct Answer
D) Permissible if the scope supports credible results
USPAP does not universally require a personal interior inspection, but the scope must support credible results and satisfy applicable legal and program conditions. Accurately disclose the inspection and other work performed. An extraordinary assumption is not automatically required whenever an interior is unseen, and disclosure alone does not authorize one; any use must meet the applicable reasonable-basis, credible-analysis, and reporting conditions.
Why This Is the Correct Answer
Option D is correct because the Scope of Work Rule requires the research and analyses necessary to develop credible assignment results, not a particular type of inspection. An exterior-only appraisal is permissible when that scope supports credible results for the intended use and satisfies applicable law and program requirements. The appraiser must accurately disclose the inspection and other work performed.
Why the Other Options Are Wrong
Option A: Prohibited, because USPAP requires an interior inspection
Option A, saying the request is prohibited because USPAP requires an interior inspection, is wrong because USPAP does not universally require a personal interior inspection.
Option B: A jurisdictional exception to the Scope of Work Rule
Option B, calling the request a jurisdictional exception to the Scope of Work Rule, misuses that term; a jurisdictional exception applies when law or regulation precludes compliance with part of USPAP, and an exterior-only request is simply a scope choice.
Option C: Permitted for any loan below a national dollar cutoff
Option C, saying it is permitted for any loan below a national dollar cutoff, invents a threshold; permissibility under USPAP depends on credible results for the intended use, not a national dollar figure.
Credible, not interior, is required
USPAP asks whether the scope produces credible results, not whether you walked inside.
How to use: Use this when a choice claims USPAP flatly bans or flatly allows a limited inspection.
Exam Tip
For inspection questions, pick the answer tied to credible results for the intended use and proper disclosure.
Common Mistakes to Avoid
- -Believing USPAP requires an interior inspection in all appraisals
- -Labeling a limited inspection a jurisdictional exception
- -Failing to disclose that the interior was not inspected
Concept Deep Dive
Analysis
This question tests whether USPAP mandates an interior inspection. USPAP does not universally require one; instead, the scope of work must be sufficient for credible results given the intended use. An exterior-only scope is acceptable when it meets that test and applicable legal or program conditions, and the inspection performed is disclosed.
Background Knowledge
USPAP sets a performance standard for scope rather than prescribing specific inspection steps. Clients and lending programs may impose their own inspection requirements, which become assignment conditions. When an interior is not observed, the appraiser considers whether any extraordinary assumption is needed and whether it meets USPAP conditions.
Real-World Application
A home equity lender orders an exterior-only appraisal for a modest line of credit under its program guidelines. The appraiser confirms the scope will produce credible results, relies on public records and prior listing data for interior details, and clearly states that no interior inspection was made.
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