An appraiser values a proposed building as though complete on the effective date, when construction has not started. What is this?
Correct Answer
B) A hypothetical condition about the property
Why this is correct: A hypothetical condition is an assumption that is contrary to what is known to be true on the effective date. Valuing a proposed building as complete when construction has not started assumes a condition contrary to fact. Why the other choices are wrong: An extraordinary assumption is about an uncertain fact (e.g., 'subject to a satisfactory inspection'). This is not a limiting condition on scope. It is not a jurisdictional exception. Exam tip: Hypothetical = contrary to known fact. Extraordinary assumption = uncertain fact.
Why This Is the Correct Answer
Why this is correct: A hypothetical condition is an assumption that is contrary to what is known to be true on the effective date. Valuing a proposed building as complete when construction has not started assumes a condition contrary to fact. Why the other choices are wrong: An extraordinary assumption is about an uncertain fact (e.g., 'subject to a satisfactory inspection'). This is not a limiting condition on scope. It is not a jurisdictional exception. Exam tip: Hypothetical = contrary to known fact. Extraordinary assumption = uncertain fact.
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