An appraiser assumes a pending zoning application will be approved. What must accompany this?
Correct Answer
B) Disclosure and a statement of possible effect
Why this is correct: A pending zoning approval is uncertain on the effective date, making its assumption an extraordinary assumption. USPAP Standards Rule 1-2(e) requires that its use be disclosed and that the report include a statement that the results might have been different if the assumption were not made. Why the other choices are wrong: Providing the application number and hearing date may be part of the analysis but is not the USPAP-mandated disclosure. A letter of support from the zoning authority is not required. A second value opinion under current zoning may be useful but is not the specific requirement for an extraordinary assumption. Exam tip: For an extraordinary assumption, always remember the two-part requirement: disclosure and a statement of possible effect.
Why This Is the Correct Answer
Why this is correct: A pending zoning approval is uncertain on the effective date, making its assumption an extraordinary assumption. USPAP Standards Rule 1-2(e) requires that its use be disclosed and that the report include a statement that the results might have been different if the assumption were not made. Why the other choices are wrong: Providing the application number and hearing date may be part of the analysis but is not the USPAP-mandated disclosure. A letter of support from the zoning authority is not required. A second value opinion under current zoning may be useful but is not the specific requirement for an extraordinary assumption. Exam tip: For an extraordinary assumption, always remember the two-part requirement: disclosure and a statement of possible effect.
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