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 reconciliation Questions
An appraiser is told the property has no environmental contamination and cannot verify it. How should this be handled?
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?
In appraising a hotel as a going concern, what must be allocated?
What does it mean to say an approach is not applicable to an assignment?
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?
An appraisal report includes an addendum explaining the adjustment derivation. How does this affect compliance?
An extraordinary assumption proves false after the report is delivered. What follows?
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