How does an alternative inspection method affect the appraiser's disclosure obligations?
Correct Answer
A) The method used and its extent must be described
Why this is correct: USPAP's reporting standards require a clear disclosure of the scope of work, including the extent of the inspection. If an alternative inspection method (e.g., desktop, hybrid, use of third-party data) is used, the report must describe the method and its extent so readers understand the basis for the appraisal. Why the other choices are wrong: No disclosure is needed if the client requested it is false; client request explains the scope but does not eliminate the disclosure requirement. Only a personal inspection requires description is incorrect; any inspection method must be described. The method is recorded in the workfile but not reported violates the requirement for clear reporting. Exam tip: Always disclose the inspection method and extent in the report.
Why This Is the Correct Answer
Why this is correct: USPAP's reporting standards require a clear disclosure of the scope of work, including the extent of the inspection. If an alternative inspection method (e.g., desktop, hybrid, use of third-party data) is used, the report must describe the method and its extent so readers understand the basis for the appraisal. Why the other choices are wrong: No disclosure is needed if the client requested it is false; client request explains the scope but does not eliminate the disclosure requirement. Only a personal inspection requires description is incorrect; any inspection method must be described. The method is recorded in the workfile but not reported violates the requirement for clear reporting. Exam tip: Always disclose the inspection method and extent in the report.
More emerging-appraisal-methods Questions
An appraiser consults a geographic information system for parcel boundaries. What limitation applies?
A collector's photographs show a condition the appraiser believes needs specialist assessment. What is the appropriate step?
What responsibility does an appraiser retain for an error originating in a third-party database?
Under current USPAP guidance, what is the output of an automated valuation model before an appraiser analyzes it?
A lender's guidelines require an interior inspection, but the client asks for a desktop product to save time. What should the appraiser do?
How should an appraiser respond to a client requesting a shorter turn time than credible results allow?
Which assignment type still requires the appraiser to develop an opinion of value?
An appraiser relies on a published capitalization rate survey. What must be considered?
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An appraiser uses permit records to establish when an addition was built. What is the main caution?
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