In a covered Fannie Mae appraisal, an appraiser observes chimney spalling and an uninspected flue with possible safety concerns. No reliable cure estimate or technical diagnosis is available. What is appropriate?
Correct Answer
B) Describe what was seen and its effect; get qualified input
Document the observed chimney deterioration, relevant available information and potential effect on use or marketability. Obtain qualified assessment when needed under the applicable assignment requirements. Do not invent a standard liner cost, certify safety from appearance or assign the entire property an unsupported condition rating.
Why This Is the Correct Answer
Option B is correct because Fannie Mae requires the appraisal to identify and describe physical deficiencies that could affect safety, soundness or structural integrity. When the appraiser is not qualified to evaluate the issue, the report notes the deficiency and the appraisal is completed subject to inspection by a qualified professional. This addresses the spalling and uninspected flue without inventing a diagnosis or cost.
Why the Other Options Are Wrong
Option A: Omit the potential effect unless the client asks about it
Option A omits the potential effect unless the client asks. Observed deficiencies that could affect safety must be identified and described in the report regardless of whether the client raises them.
Option C: Certify safe operation because no specialist report exists
Option C certifies safe operation because no specialist report exists. The lack of a report does not establish safety, and an appraiser should not certify the safety of a chimney flue from appearance.
Option D: Classify the whole structure as being in poor condition
Option D classifies the whole structure as being in poor condition. A chimney issue does not by itself support rating the entire property poor; the condition rating should reflect the overall evidence.
See it, say it, refer it
Describe what you see, state its possible effect and refer safety questions to a qualified professional.
How to use: Use this when an exam scenario involves a possible safety or structural deficiency the appraiser cannot evaluate.
Exam Tip
Look for the answer that both reports the observation and calls for qualified input. Eliminate answers that ignore the issue, certify safety or overstate the condition.
Common Mistakes to Avoid
- -Leaving out observed deficiencies because the client did not ask
- -Certifying the safety of a system the appraiser is not qualified to evaluate
- -Guessing a repair cost without reliable support
Concept Deep Dive
Analysis
This question tests an appraiser's duty when observing a possible safety deficiency outside the appraiser's expertise. The appraiser must describe what was observed and its potential effect, and obtain qualified input rather than guessing, ignoring it or certifying safety.
Background Knowledge
Appraisers are not home inspectors, but they must report apparent adverse conditions observed during inspection or discovered during research. When a deficiency may affect safety and its cause or cure is unclear, the appropriate step is to describe it and condition the appraisal on a qualified professional inspection. This keeps the report credible without exceeding the appraiser's expertise.
Real-World Application
During a site visit, an appraiser sees crumbling brick on a chimney and cannot view the flue. The appraiser describes and photographs the condition, notes its possible effect on safety and marketability, and completes the appraisal subject to inspection by a qualified chimney professional.
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