A report will be used only by the client, who understands the property well. Which report option allows minimal presentation, and at what price?
Correct Answer
A) A Restricted Appraisal Report, usable only by the client and named users
Why this is correct: A Restricted Appraisal Report is permitted for limited users who understand the property, allowing minimal presentation, but it must include warnings about its restricted use, per the original explanation. Why the other choices are wrong: "An oral report confirmed by email" is subject to full USPAP development and reporting standards, not minimal presentation. "A standard Appraisal Report with several sections silently omitted to save time" is misleading and non-compliant. "A letter opinion exempt from the standards" is incorrect; any appraisal report is subject to USPAP. Exam tip: Use a Restricted Report only for named users who understand the limitations.
Why This Is the Correct Answer
Why this is correct: A Restricted Appraisal Report is permitted for limited users who understand the property, allowing minimal presentation, but it must include warnings about its restricted use, per the original explanation. Why the other choices are wrong: "An oral report confirmed by email" is subject to full USPAP development and reporting standards, not minimal presentation. "A standard Appraisal Report with several sections silently omitted to save time" is misleading and non-compliant. "A letter opinion exempt from the standards" is incorrect; any appraisal report is subject to USPAP. Exam tip: Use a Restricted Report only for named users who understand the limitations.
More USPAP Questions
Which type of appraisal report may contain the appraiser's analyses, opinions, and conclusions but is intended for use by the client only?
How long must an appraiser retain the workfile for an appraisal assignment under USPAP?
If an appraiser uses a hypothetical condition that the subject property is 10% larger than it actually is, this must be:
Under Standard 1, when developing a real property appraisal, an appraiser must:
An appraiser accepts an assignment to appraise a specialized industrial property but has never appraised this property type before. To comply with the Competency Rule, the appraiser:
According to the Scope of Work Rule, the scope of work must be appropriate to the:
According to Standard 1, when developing an opinion of market value, an appraiser must analyze:
A lender emails: 'We need at least $450,000 to make this loan work — can you take the assignment?' Accepting on that basis is:
An appraiser is developing an opinion of market value for a 20-unit apartment building. The appraiser finds three comparable sales with the following information: Sale 1: 18 units, sold for $1,800,000; Sale 2: 22 units, sold for $2,200,000; Sale 3: 24 units, sold for $2,280,000. What is the average price per unit for these comparables?
In developing a scope of work, an appraiser must consider all of the following factors EXCEPT:
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