A written appraisal report's certification must include, among other things, a statement that the appraiser:
Correct Answer
D) Has (or has not) performed prior services on the property within the look-back period
Why this is correct: The certification required by USPAP Standard 2 must include a statement about prior services. This disclosure is a core component of certifying the appraiser's impartiality and independence, ensuring transparency about any potential conflicts of interest. Why the other choices are wrong: The certification does not guarantee the property will sell at the appraised value, as market outcomes cannot be guaranteed. It does not require stating that the appraiser holds current errors-and-omissions insurance for the specific assignment. It also does not require a statement about completing continuing education on time. Exam tip: Remember the certification is about conduct and disclosure, not guarantees or insurance.
Why This Is the Correct Answer
USPAP requires the certification to state whether the appraiser has or has not performed services regarding the subject property within the look-back period preceding acceptance of the assignment.
Why the Other Options Are Wrong
Option A: Guarantees the property will sell at the appraised value
A value opinion is an opinion, not a guarantee. No certification promises a sale price.
Option B: Holds current errors-and-omissions liability insurance coverage for this specific assignment
Errors-and-omissions coverage is a business and licensing matter and is not a certification element.
Option C: Completed the state's continuing education on time
Continuing education compliance is handled through state licensing rather than through the report's certification.
Have You Been Here Before?
Have You Been Here Before? Prior services on the property must be stated either way.
How to use: The statement is required whether or not you performed prior services. Silence does not satisfy it.
Exam Tip
Prior service disclosure is required in the certification and the obligation to consider it arises before accepting the assignment.
Common Mistakes to Avoid
- -Omitting the statement where no prior services were performed
- -Confusing certification content with licensing requirements
- -Reading a value opinion as a guarantee
Concept Deep Dive
Analysis
The certification is a set of statements the appraiser signs, and USPAP prescribes its content. Among the required elements is a statement of whether the appraiser has or has not performed services regarding the subject property within the look-back period preceding acceptance of the assignment, and where services were performed, disclosure of that fact. The requirement exists because prior involvement can create a predisposition toward a previous conclusion, and an intended user is entitled to know about it in order to weigh the report's independence. Other required certification statements cover impartiality, absence of interest in the property, that compensation is not contingent on the value reported, and whether the appraiser personally inspected the property. What the certification never contains is a guarantee of sale price, since a value opinion is an opinion; nor does it address insurance coverage or continuing education, both of which are licensing matters handled outside the report.
Background Knowledge
USPAP's certification requirements include statements on impartiality, absence of interest, non-contingent compensation, personal inspection, significant appraisal assistance, and prior services performed on the property within the look-back period.
Real-World Application
An appraiser who valued the same property eighteen months earlier for a different client discloses the prior service in the certification and to the current client before accepting.
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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