In an appraisal review, the reviewer's client asks whether the reviewed report 'complies with USPAP.' The reviewer's opinion on that question is:
Correct Answer
D) A legitimate review conclusion the reviewer must develop and support
Why this is correct: The core of appraisal review practice is forming an opinion on the quality and compliance of the work under review. As the original explanation states, this involves developing a professional conclusion about the report's completeness, adequacy, relevance, appropriateness, and reasonableness based on the review's scope. The reviewer must support this opinion with evidence and reasoning, just as with any other appraisal conclusion. Why the other choices are wrong: The opinion is not 'Outside any professional standard'; USPAP specifically governs review work. It is not 'Prohibited — only state boards judge compliance'; while state boards enforce rules, reviewers professionally opine on compliance within their assignments. It is not 'Automatic — any signed and certified report is presumed fully compliant'; a signature does not guarantee compliance, and a reviewer must independently assess the work. Exam tip: Remember that a review assignment requires the reviewer to develop and support their own conclusions about the work product's quality and USPAP compliance.
Why This Is the Correct Answer
Why this is correct: The core of appraisal review practice is forming an opinion on the quality and compliance of the work under review. As the original explanation states, this involves developing a professional conclusion about the report's completeness, adequacy, relevance, appropriateness, and reasonableness based on the review's scope. The reviewer must support this opinion with evidence and reasoning, just as with any other appraisal conclusion. Why the other choices are wrong: The opinion is not 'Outside any professional standard'; USPAP specifically governs review work. It is not 'Prohibited — only state boards judge compliance'; while state boards enforce rules, reviewers professionally opine on compliance within their assignments. It is not 'Automatic — any signed and certified report is presumed fully compliant'; a signature does not guarantee compliance, and a reviewer must independently assess the work. Exam tip: Remember that a review assignment requires the reviewer to develop and support their own conclusions about the work product's quality and USPAP compliance.
More USPAP Questions
Which type of appraisal report may contain the appraiser's analyses, opinions, and conclusions but is intended for use by the client only?
How long must an appraiser retain the workfile for an appraisal assignment under USPAP?
If an appraiser uses a hypothetical condition that the subject property is 10% larger than it actually is, this must be:
Under Standard 1, when developing a real property appraisal, an appraiser must:
An appraiser accepts an assignment to appraise a specialized industrial property but has never appraised this property type before. To comply with the Competency Rule, the appraiser:
According to the Scope of Work Rule, the scope of work must be appropriate to the:
According to Standard 1, when developing an opinion of market value, an appraiser must analyze:
A lender emails: 'We need at least $450,000 to make this loan work — can you take the assignment?' Accepting on that basis is:
An appraiser is developing an opinion of market value for a 20-unit apartment building. The appraiser finds three comparable sales with the following information: Sale 1: 18 units, sold for $1,800,000; Sale 2: 22 units, sold for $2,200,000; Sale 3: 24 units, sold for $2,280,000. What is the average price per unit for these comparables?
In developing a scope of work, an appraiser must consider all of the following factors EXCEPT:
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