A Restricted Appraisal Report must contain a prominent statement that:
Correct Answer
D) Its use is restricted, and the workfile is needed to understand it
Why this is correct: A Restricted Appraisal Report must contain a prominent statement that its use is restricted, and the workfile is needed to understand it. This restriction allows the report to be brief, as the named users can access the full workfile, and it prevents reliance by anyone else. Why the other choices are wrong: The value conclusion may be revised at any time is false; an appraisal is an opinion as of a specific date. The report satisfies every possible intended use is incorrect; an appraisal is for specific intended uses. The appraiser accepts no liability whatsoever to the named client is false; appraisers have professional liability. Exam tip: The key feature of a Restricted Report is the prominent use restriction tied to the workfile.
Why This Is the Correct Answer
Why this is correct: A Restricted Appraisal Report must contain a prominent statement that its use is restricted, and the workfile is needed to understand it. This restriction allows the report to be brief, as the named users can access the full workfile, and it prevents reliance by anyone else. Why the other choices are wrong: The value conclusion may be revised at any time is false; an appraisal is an opinion as of a specific date. The report satisfies every possible intended use is incorrect; an appraisal is for specific intended uses. The appraiser accepts no liability whatsoever to the named client is false; appraisers have professional liability. Exam tip: The key feature of a Restricted Report is the prominent use restriction tied to the workfile.
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