A Restricted Appraisal Report must conspicuously warn the reader of which limitation?
Correct Answer
B) It may not contain the rationale supporting conclusions
Why this is correct: A Restricted Appraisal Report may not contain the full rationale supporting conclusions; that detail may be only in the workfile. USPAP requires a conspicuous warning to the reader about this limitation so they understand the report's condensed nature. Why the other choices are wrong: The value opinion not being independently reviewed is not a specific warning required for a Restricted Appraisal Report. The appraiser not inspecting the subject property would be a different limitation (e.g., a desktop appraisal), not inherent to the Restricted Report format. The client may not disclose it to any third parties is a client restriction, not a report content limitation. Exam tip: The key warning in a Restricted Report is about missing rationale; memorize this USPAP requirement.
Why This Is the Correct Answer
Why this is correct: A Restricted Appraisal Report may not contain the full rationale supporting conclusions; that detail may be only in the workfile. USPAP requires a conspicuous warning to the reader about this limitation so they understand the report's condensed nature. Why the other choices are wrong: The value opinion not being independently reviewed is not a specific warning required for a Restricted Appraisal Report. The appraiser not inspecting the subject property would be a different limitation (e.g., a desktop appraisal), not inherent to the Restricted Report format. The client may not disclose it to any third parties is a client restriction, not a report content limitation. Exam tip: The key warning in a Restricted Report is about missing rationale; memorize this USPAP requirement.
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