An appraiser competent in single-family work accepts a small mixed-use building, associating with a commercial appraiser for the income analysis. The report must:
Correct Answer
C) Describe the competency steps taken, including the association
Why this is correct: The Competency Rule allows an appraiser to fill a knowledge gap by associating with a competent person, but this association and the steps taken to achieve competency must be disclosed in the report, per the original explanation. Why the other choices are wrong: "Conceal the association to protect the fee split" is unethical and violates disclosure requirements. "Name only the commercial appraiser as author" is incorrect; the signing appraiser retains responsibility. "Include a prominent warning that the value may be unreliable" is wrong; the association should resolve reliability concerns, not highlight them. Exam tip: Proper association and disclosure fulfill competency; hiding it violates ethics.
Why This Is the Correct Answer
Why this is correct: The Competency Rule allows an appraiser to fill a knowledge gap by associating with a competent person, but this association and the steps taken to achieve competency must be disclosed in the report, per the original explanation. Why the other choices are wrong: "Conceal the association to protect the fee split" is unethical and violates disclosure requirements. "Name only the commercial appraiser as author" is incorrect; the signing appraiser retains responsibility. "Include a prominent warning that the value may be unreliable" is wrong; the association should resolve reliability concerns, not highlight them. Exam tip: Proper association and disclosure fulfill competency; hiding it violates ethics.
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:
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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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