An engagement calls only for an opinion about the quality of another appraiser’s real-property appraisal, without a separate opinion of property value. Which USPAP standards principally govern this service?
Correct Answer
C) Standards 3–4 for developing and reporting an appraisal review
Standards 3–4 govern developing and reporting an appraisal review. An oral review does not automatically remove applicable reporting and workfile obligations. A review may also include the reviewer’s own value opinion when within scope; additional value-development and reporting requirements then apply. Wording that adopts another value can itself communicate a value opinion, so the actual substance and scope matter.
Why This Is the Correct Answer
Option C is correct because USPAP defines an appraisal review as developing an opinion about the quality of another appraiser's work, and Standards 3 and 4 govern developing and reporting that review. The engagement here asks only for a quality opinion, with no separate value opinion. If the reviewer's scope later included an own value opinion, additional value development and reporting requirements would apply on top of Standards 3 and 4.
Why the Other Options Are Wrong
Option A: Standards 1–2, because the original report includes a value
Option A says Standards 1-2 apply because the original report includes a value. The work under review containing a value does not turn the reviewer's quality opinion into a real property appraisal; the reviewer is developing an opinion about another appraiser's work, which is review work under Standards 3-4.
Option B: No standards apply if the review is delivered orally to the client
Option B says no standards apply if the review is delivered orally. Delivering a review orally does not remove the obligations that apply to appraisal review, including reporting and workfile requirements.
Option D: Standards 5–6, because two appraisers are involved
Option D points to Standards 5-6 because two appraisers are involved. Standards 5-6 address mass appraisal, not the number of appraisers involved, so they do not govern a review of one appraiser's report.
Review sits in Three-Four
Pair the standards in twos: 1-2 real property appraisal, 3-4 appraisal review, 5-6 mass appraisal. Reviewing someone else's work lands in the 3-4 pair.
How to use: Use this pairing whenever a question asks which standards govern a described service.
Exam Tip
Classify the service first (value opinion, quality opinion or mass valuation), then name the standards pair. Do not let details like the delivery method or number of people distract you.
Common Mistakes to Avoid
- -Applying Standards 1-2 because the report being reviewed contains a value
- -Assuming an oral review is exempt from USPAP obligations
- -Thinking Standards 5-6 cover any assignment involving more than one appraiser
Concept Deep Dive
Analysis
This question tests whether you can match a type of service to the USPAP standards that govern it. The service is an opinion about the quality of another appraiser's work, which USPAP defines as an appraisal review. Once you classify the service correctly, the governing standards follow: Standards 3 and 4 cover developing and reporting an appraisal review.
Background Knowledge
USPAP separates appraisal (developing an opinion of value) from appraisal review (developing an opinion about the quality of another appraiser's work). Standards 1-2 cover real property appraisal, Standards 3-4 cover appraisal review development and reporting, and Standards 5-6 cover mass appraisal.
Real-World Application
A lender's quality control department hires an appraiser to judge whether a completed single-family appraisal is credible, without asking for a new value. The reviewer develops the review under Standard 3 and communicates the results under Standard 4, keeping a workfile for the assignment.
More USPAP Questions
Under USPAP, what are assignment results?
The certification required by Standards Rule 2-3 must be signed by:
Under 2024 USPAP, which statement correctly combines the requirements for an oral real property appraisal report and its workfile?
An appraiser accepts an assignment involving a property type the appraiser has valued once before, years ago. Competency requires:
A Certified General appraiser is asked to value a specialized industrial property for the first time. The appraiser knows a competency gap exists before agreeing to the assignment. What is required if the appraiser proceeds?
Under 2024 USPAP Standard 1, which listed assignment element must be identified in developing a real property appraisal?
An appraiser provided an appraisal of the same property for another client 18 months ago. No confidentiality obligation prevents disclosing the fact of that service. Before agreeing to a new assignment, the appraiser must:
According to USPAP, what is the primary purpose of the Ethics Rule?
An appraiser is asked to determine 'fair market value' for an assignment. According to USPAP, the appraiser should:
Which list gives the sections of the 2024 USPAP Ethics Rule?
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