An appraiser delivers an oral report of value over the phone. What does USPAP say?
Correct Answer
D) Oral reports are permitted — with the same development duties and a compliant workfile
Why this is correct: USPAP permits oral reports, but the appraiser must fully comply with Standard 1 (development) and maintain a workfile documenting the report's substance, as explained originally. Why the other choices are wrong: "Oral reports are strictly prohibited for any real property appraisal assignment" is false; they are allowed. "Oral reports escape the standards entirely" is incorrect; USPAP applies. "Only litigation testimony may be oral" is wrong; oral reports are not limited to litigation. Exam tip: An oral report requires the same rigorous development and workfile as a written report.
Why This Is the Correct Answer
Why this is correct: USPAP permits oral reports, but the appraiser must fully comply with Standard 1 (development) and maintain a workfile documenting the report's substance, as explained originally. Why the other choices are wrong: "Oral reports are strictly prohibited for any real property appraisal assignment" is false; they are allowed. "Oral reports escape the standards entirely" is incorrect; USPAP applies. "Only litigation testimony may be oral" is wrong; oral reports are not limited to litigation. Exam tip: An oral report requires the same rigorous development and workfile as a written report.
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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