An appraisal report omits the definition of value relied upon. What is the consequence?
Correct Answer
A) A required element of the report is missing
Why this is correct: USPAP Standards Rule 2-2(a)(vii) requires an appraisal report to state the type and definition of value. Omitting it means a required element is missing, making the report incomplete and potentially misleading. Why the other choices are wrong: Market value is not always implied; the assignment could be for investment value, assessed value, etc. The report does not become a Restricted Appraisal Report; that is a separate report type with its own requirements. The effective date is unrelated to the definition of value. Exam tip: Always state the definition of value used. Different definitions (e.g., market value vs. investment value) yield different results.
Why This Is the Correct Answer
Why this is correct: USPAP Standards Rule 2-2(a)(vii) requires an appraisal report to state the type and definition of value. Omitting it means a required element is missing, making the report incomplete and potentially misleading. Why the other choices are wrong: Market value is not always implied; the assignment could be for investment value, assessed value, etc. The report does not become a Restricted Appraisal Report; that is a separate report type with its own requirements. The effective date is unrelated to the definition of value. Exam tip: Always state the definition of value used. Different definitions (e.g., market value vs. investment value) yield different results.
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