An appraiser is told the property has no environmental contamination and cannot verify it. How should this be handled?

Correct Answer

C) State it as an extraordinary assumption disclosed

Why this is correct: An extraordinary assumption is used for a fact that is uncertain but not known to be false. The appraiser cannot verify the absence of contamination, so this is the proper classification. USPAP requires its disclosure and a statement that the conclusion might change if the assumption proves false. Why the other choices are wrong: Refusing the assignment until testing is completed is not required; the assignment can proceed with proper disclosure. Reporting it silently as an ordinary assumption is incorrect because ordinary assumptions are for facts that are typically accepted as true without verification. Treating it as a hypothetical condition of the site is wrong because a hypothetical condition assumes a fact contrary to what is known, which is not the case here. Exam tip: Remember the hierarchy: ordinary assumption (common, undisclosed), extraordinary assumption (uncertain, must be disclosed), hypothetical condition (known false, must be disclosed).