The intended lender’s applicable assignment conditions require an interior inspection. The client asks the appraiser to deliver a desktop appraisal instead, and the inspection condition has not been authorized for modification. What should the appraiser do?
Correct Answer
A) Resolve the inspection requirement and meet it, or decline if it cannot be resolved.
A credible appraisal must also address the applicable assignment conditions and intended use. The appraiser cannot unilaterally disregard an unresolved interior-inspection requirement merely because a desktop analysis might otherwise be credible. Clarify or negotiate an authorized change, perform the required suitable work, or decline/withdraw as appropriate. Disclose the scope actually performed; disclosure alone does not cure failure to meet the assignment.
Why This Is the Correct Answer
Option A is correct because the appraiser must address the applicable assignment conditions and intended use, not just produce an opinion that might be credible. The appraiser should clarify or negotiate an authorized change, perform the required interior inspection, or decline or withdraw if the conflict cannot be resolved. Disclosure alone does not cure a failure to meet the assignment.
Why the Other Options Are Wrong
Option B: Deliver the desktop report because the client requested it in writing.
Option B is wrong because a written client request to deliver a desktop report does not override the lender's unmodified interior-inspection condition. A written request does not authorize disregarding a condition that governs the intended use.
Option C: Treat a credible desktop opinion as an automatic waiver of the lender’s stated condition.
Option C is wrong because a credible desktop opinion is not an automatic waiver of the lender's stated condition. Credibility and compliance with assignment conditions are separate requirements, and both must be satisfied.
Option D: Deliver two reports without resolving whether either satisfies the intended use.
Option D is wrong because delivering two reports without resolving whether either satisfies the intended use leaves the core conflict unaddressed. The appraiser must resolve the inspection requirement rather than shift the problem to the client.
Resolve, perform, or decline
When a required condition conflicts with the requested product, resolve it, perform the work, or decline. Ignoring it is not an option.
How to use: Use this when a question pits a client's requested scope against an unmodified program or lender condition.
Exam Tip
Answers that rely on the client's request, a waiver theory or extra reports usually miss the issue. Look for the answer that resolves the condition and meets it or declines.
Common Mistakes to Avoid
- -Treating a written client request as authority to drop a lender condition
- -Assuming a credible result excuses noncompliance with assignment conditions
- -Thinking disclosure of the scope performed cures failure to meet the assignment
Concept Deep Dive
Analysis
This question tests the interaction between assignment conditions and scope of work. The lender's applicable conditions require an interior inspection, and that condition has not been authorized for change. The appraiser cannot simply ignore it because a desktop analysis might be credible; the requirement must be resolved and met, or the assignment declined.
Background Knowledge
Assignment conditions include laws, regulations and other conditions that affect the scope of work, including client and program requirements. USPAP also prohibits letting assignment conditions limit the scope so much that results are not credible for the intended use.
Real-World Application
A management company asks an appraiser to switch a lender order to a desktop format, but the lender's engagement still calls for an interior inspection. The appraiser asks the lender to confirm whether the condition has been changed, and when no change is authorized, schedules the interior inspection.
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