An appraiser lacking competence in an analytical method required by an assignment must:
Correct Answer
C) Acquire the competence, associate, or decline the work
Why this is correct: The Competency Rule requires an appraiser to have the knowledge and experience to complete an assignment competently. If lacking competence in a required method, the appraiser must, before accepting the assignment, acquire the necessary competence, associate with a competent appraiser, or decline the work. Why the other choices are wrong: A limiting condition cannot substitute for required competence. Substituting a different method violates the scope of work if the required method is specified. Reporting results as preliminary does not address the lack of competence. Exam tip: For competency issues: acquire it, associate, or decline—do not proceed without it.
Why This Is the Correct Answer
Why this is correct: The Competency Rule requires an appraiser to have the knowledge and experience to complete an assignment competently. If lacking competence in a required method, the appraiser must, before accepting the assignment, acquire the necessary competence, associate with a competent appraiser, or decline the work. Why the other choices are wrong: A limiting condition cannot substitute for required competence. Substituting a different method violates the scope of work if the required method is specified. Reporting results as preliminary does not address the lack of competence. Exam tip: For competency issues: acquire it, associate, or decline—do not proceed without it.
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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