An appraiser asked to value a property type never previously appraised may accept if:
Correct Answer
D) Competence can be acquired before the results are relied upon
Why this is correct: The Competency Rule allows an appraiser to accept an assignment for an unfamiliar property type if, before the assignment is completed and the results are relied upon, they take the necessary steps to become competent. This includes gaining the required knowledge or experience, or associating with a competent person who will provide supervision. Why the other choices are wrong: A limiting condition does not cure a lack of competency. Reducing the fee does not address the competency requirement. Client acceptance of risk in writing does not override the appraiser's professional obligation to be competent. Exam tip: You can accept an unfamiliar assignment if you can get competent before delivering the final product.
Why This Is the Correct Answer
Why this is correct: The Competency Rule allows an appraiser to accept an assignment for an unfamiliar property type if, before the assignment is completed and the results are relied upon, they take the necessary steps to become competent. This includes gaining the required knowledge or experience, or associating with a competent person who will provide supervision. Why the other choices are wrong: A limiting condition does not cure a lack of competency. Reducing the fee does not address the competency requirement. Client acceptance of risk in writing does not override the appraiser's professional obligation to be competent. Exam tip: You can accept an unfamiliar assignment if you can get competent before delivering the final product.
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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