An appraiser signs, finalizes and electronically transmits a residential appraisal report to the client on March 15. Its value opinion has a March 1 effective date. The client does not open the transmitted report until March 20. What is the report date?
Correct Answer
C) March 15 (the date the report is finalized and transmitted)
The date of the report is the date the report is transmitted to the client, which here is March 15, the day it was signed and sent. March 1 is the effective date of the value opinion. When the client opens the report does not change the report date. USPAP requires the report to state both the effective date and the date of the report.
Why This Is the Correct Answer
Option C is correct because the date of the report is the date the report is transmitted to the client. The appraiser signed, finalized and sent the report on March 15. When the client opens it does not change that date.
Why the Other Options Are Wrong
Option A: March 20 (the date the client opens the transmitted report)
Option A, March 20, is the date the client opens the transmitted report. The report date is set when the appraiser transmits the report, so the client's later opening of it does not change the report date.
Option B: Any of the listed dates is an acceptable report date
Option B says any of the listed dates is an acceptable report date. Only the transmittal date, March 15, is the report date; March 1 is the effective date and March 20 is just when the client opened it.
Option D: March 1 (the effective date of the value opinion in the report)
Option D, March 1, is the effective date of the value opinion. The effective date is the date to which the value applies, which is a different date from the date of the report.
Effective Is Value, Report Is Sent
The effective date is when the value applies. The report date is when the appraiser sends the report.
How to use: Use this pairing when a question lists several dates and asks for the report date.
Exam Tip
Separate the effective date from the report date, and ignore when the client reads the report. The report date follows transmittal by the appraiser.
Common Mistakes to Avoid
- -Using the effective date as the report date
- -Treating the date the client opens the report as the report date
- -Thinking any related date can serve as the report date
Concept Deep Dive
Analysis
This question tests the difference between the effective date of a value opinion and the date of the report. The date of the report is the date the report is transmitted to the client, which here is March 15. The March 1 effective date and the March 20 opening date are distractors.
Background Knowledge
An appraisal report carries two key dates: the effective date of the value opinion and the date of the report. The effective date sets the point in time for the value, while the report date shows when the report was transmitted. Stating both dates helps intended users understand whether the analysis is current, retrospective or prospective.
Real-World Application
An appraiser inspects a home and sets March 1 as the effective date. She completes, signs and emails the report on March 15. The client reviews it a week later, but the report date stays March 15.
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