An extraordinary assumption relied upon in an assignment must be handled how?
Correct Answer
D) Disclosed, with a statement it might affect results
Why this is correct: An extraordinary assumption is a condition assumed to be true for the appraisal that, if false, could alter the appraiser's conclusions. USPAS requires it to be disclosed, and the report must state that the results might be affected if the assumption proves incorrect. Why the other choices are wrong: Approved in writing by the client beforehand may be good practice but is not the USPAS handling requirement. Removed before the report may be delivered is incorrect; assumptions can be used if properly disclosed. Supported by at least one comparable sale is not a requirement for an extraordinary assumption. Exam tip: For an extraordinary assumption, always disclose and state the potential impact.
Why This Is the Correct Answer
Why this is correct: An extraordinary assumption is a condition assumed to be true for the appraisal that, if false, could alter the appraiser's conclusions. USPAS requires it to be disclosed, and the report must state that the results might be affected if the assumption proves incorrect. Why the other choices are wrong: Approved in writing by the client beforehand may be good practice but is not the USPAS handling requirement. Removed before the report may be delivered is incorrect; assumptions can be used if properly disclosed. Supported by at least one comparable sale is not a requirement for an extraordinary assumption. Exam tip: For an extraordinary assumption, always disclose and state the potential impact.
More reconciliation Questions
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Reconciliation of the approaches to value is best described as which activity?
Significant appraisal assistance from a person who does not sign the report must be treated how?
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Which of the following is a written report option named in the current edition of USPAP?
What distinguishes qualitative from quantitative analysis in the sales comparison approach?
Why should the reconciliation address the quantity of evidence as well as its quality?
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An extraordinary assumption proves false after the report is delivered. What follows?
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