How do the content obligations of the two report options differ with respect to the information analyzed?
Correct Answer
C) An Appraisal Report summarizes it; a Restricted one states it
Why this is correct: USPAP defines that an Appraisal Report summarizes the information analyzed, while a Restricted Appraisal Report merely states the information analyzed (provides a list without narrative summary). Why the other choices are wrong: 'An Appraisal Report states it; a Restricted one summarizes' reverses the requirement. 'An Appraisal Report describes it; a Restricted one lists it' uses incorrect verbs. 'An Appraisal Report summarizes it; a Restricted one omits it' is false; Restricted reports do not omit required content. Exam tip: Remember: Appraisal Report = summarize; Restricted Report = state. The verbs are key.
Why This Is the Correct Answer
Why this is correct: USPAP defines that an Appraisal Report summarizes the information analyzed, while a Restricted Appraisal Report merely states the information analyzed (provides a list without narrative summary). Why the other choices are wrong: 'An Appraisal Report states it; a Restricted one summarizes' reverses the requirement. 'An Appraisal Report describes it; a Restricted one lists it' uses incorrect verbs. 'An Appraisal Report summarizes it; a Restricted one omits it' is false; Restricted reports do not omit required content. Exam tip: Remember: Appraisal Report = summarize; Restricted Report = state. The verbs are key.
More USPAP Questions
Reconciliation of the approaches to value is best described as which activity?
Why should the reconciliation address the quantity of evidence as well as its quality?
How long must a report be retained compared with the workfile?
What distinguishes an appraisal review from an appraisal?
An appraiser reconciles to a value at the top of the indicated range because the client needs that figure. What has occurred?
What does it mean that a value opinion must be reasonable rather than merely arithmetically derived?
What should the reconciliation section explain to the reader?
The three approaches indicate $480,000, $495,000 and $610,000. What should the appraiser do first?
Three approaches indicate $1.02 million, $1.05 million and $1.04 million. How should this be reported?
A client sends comments disputing the appraiser's adjustment for condition. What is the appropriate response?
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