An appropriately credentialed appraiser is offered a desktop assignment on an unfamiliar property type. A necessary competency gap is known before agreement. If the appraiser elects to proceed, what is required?
Correct Answer
C) Disclose the gap before agreement, acquire competency and describe the steps in the report.
A desktop scope does not waive competency. For a known pre-agreement gap, the appraiser must disclose it before agreeing, take the steps needed for competent completion, and describe the deficiency and those steps in the report. Qualified assistance can help the appraiser acquire competency; it does not replace the required process or enlarge a credential’s legal scope. Decline or withdraw if competent completion cannot be achieved.
Why This Is the Correct Answer
Option C is correct because USPAP requires an appraiser who lacks competency before agreeing to an assignment to disclose that lack to the client before agreeing, take all steps necessary or appropriate to complete the assignment competently, and describe the lack and the steps taken in the report. The desktop scope does not change these duties.
Why the Other Options Are Wrong
Option A: Treat the absence of a personal inspection as an exemption from competency requirements.
Option A treats the absence of a personal inspection as an exemption from competency requirements. The Competency Rule applies regardless of inspection scope.
Option B: Rely on the data collector’s qualifications instead of gaining the appraiser’s needed knowledge.
Option B relies on the data collector's qualifications instead of the appraiser gaining the needed knowledge. Qualified assistance can help, but it does not replace the appraiser's own competency process.
Option D: Disclose the competency gap to the client when delivering the completed report.
Option D discloses the gap only when delivering the completed report. For a gap known before agreement, disclosure must come before agreeing to perform the assignment.
Disclose, acquire, describe
Three steps in order: disclose before agreeing, acquire the competency, describe it in the report. The order matters: disclosure comes first.
How to use: Use this sequence when a question involves a competency gap known before engagement.
Exam Tip
Timing is often the trap: for a pre-agreement gap, disclosure must precede agreement. Delivery-time disclosure is too late.
Common Mistakes to Avoid
- -Disclosing the competency gap only at report delivery
- -Believing desktop assignments have relaxed competency rules
- -Relying on a data collector's skills to cover the appraiser's gap
Concept Deep Dive
Analysis
This question tests USPAP's Competency Rule when a gap is known before agreement. A desktop scope does not waive competency. The appraiser must disclose the gap before agreeing, take the steps needed to complete the work competently, and describe the deficiency and those steps in the report.
Background Knowledge
USPAP's Competency Rule requires appraisers to be competent or to acquire competency for each assignment. When a gap is recognized before agreement, the three steps are disclosure before agreement, acquiring competency, and describing both in the report. If competency cannot be achieved, the appraiser should decline or withdraw.
Real-World Application
An appraiser who mainly values single-family homes is offered a desktop assignment on a small mixed-use building. Before accepting, the appraiser tells the client about the limited experience, then studies the property type and consults an experienced colleague. The report describes the gap and the steps taken.
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