An opinion of value with an effective date in the future is described how?
Correct Answer
D) As a prospective value opinion
Why this is correct: A value opinion with a future effective date is prospective. It estimates value for a property that does not yet exist in its proposed state, such as a development upon completion. Such assignments require clear disclosure of extraordinary assumptions or hypothetical conditions. Why the other choices are wrong: A 'retrospective value opinion' has an effective date in the past. A 'conditional value opinion' depends on the occurrence of a specified condition. A 'restricted value opinion' refers to a report with limited content for a specific client. Exam tip: Prospective = future, Retrospective = past. The effective date defines the type.
Why This Is the Correct Answer
Why this is correct: A value opinion with a future effective date is prospective. It estimates value for a property that does not yet exist in its proposed state, such as a development upon completion. Such assignments require clear disclosure of extraordinary assumptions or hypothetical conditions. Why the other choices are wrong: A 'retrospective value opinion' has an effective date in the past. A 'conditional value opinion' depends on the occurrence of a specified condition. A 'restricted value opinion' refers to a report with limited content for a specific client. Exam tip: Prospective = future, Retrospective = past. The effective date defines the type.
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