A Restricted Appraisal Report must contain a prominent statement that:
Correct Answer
D) Use is limited to the client and named users; rationale may be absent
The restricted report must limit use to the client and named intended users and warn that some supporting rationale may be absent. It does not promise all recipients access to the workfile, nor does it waive credible development, sufficient disclosure for its users or recordkeeping.
Why This Is the Correct Answer
Option D is correct because USPAP requires a Restricted Appraisal Report to clearly and conspicuously state a restriction limiting use to the client and the named intended users, and to warn that the report may not contain supporting rationale for all opinions and conclusions. The option captures both required statements. These statements do not waive credible development or recordkeeping duties.
Why the Other Options Are Wrong
Option A: The value may be revised later for any outcome that the client prefers to see
Option A is wrong because a statement that the value may be revised later for any outcome the client prefers would signal advocacy and bias. No such statement is required or permitted.
Option B: The report may be used by anyone who receives a copy
Option B is wrong because saying the report may be used by anyone who receives a copy contradicts the required restriction. Use is limited to the client and named intended users.
Option C: The appraiser accepts no responsibility for credible analysis
Option C is wrong because the appraiser cannot disclaim responsibility for credible analysis. Credible development is required regardless of the reporting option.
Named users, missing rationale
A Restricted Appraisal Report must say who may use it, the client and named users, and what may be missing, some supporting rationale.
How to use: Use this to identify the two key statements required in a Restricted Appraisal Report.
Exam Tip
Look for an option that pairs the use restriction to named users with the warning about absent rationale.
Common Mistakes to Avoid
- -Thinking any recipient of a restricted report becomes an intended user
- -Believing the restricted option relaxes credibility requirements
- -Remembering the use restriction but forgetting the rationale warning
Concept Deep Dive
Analysis
This question tests the required statements in a Restricted Appraisal Report. USPAP requires both a use restriction limiting use to the client and named intended users and a warning that supporting rationale may not all appear. Find the option that captures both.
Background Knowledge
The Restricted Appraisal Report is designed for a limited audience who may already understand the property and assignment. USPAP protects others by requiring a conspicuous use restriction and a conspicuous rationale warning. Intended users must be identified by name.
Real-World Application
An attorney and the client are the only named intended users of a restricted report used to evaluate settlement options. The report prominently limits use to them and warns that not all rationale is included, while the appraiser's workfile holds the full support.
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