In emerging and adjacent valuation practice, a client may request an oral appraisal report. Which statement best describes how an oral appraisal report relates to USPAP Standards 1–2?
Correct Answer
B) It is an SR 2-4 reporting option for a Standard 1 appraisal and needs a workfile
An oral real-property appraisal report remains subject to USPAP. Under SR 2-4 it must address the substantive matters of SR 2-2(a) to the extent possible and appropriate. The workfile must include the required oral-report summary and signed, dated certification, together with needed support. Oral communication does not waive Standard 1 development. The written reporting options in SR 2-2 and oral reporting under SR 2-4 should not be confused.
Why This Is the Correct Answer
Option B is correct because an oral real property appraisal report remains subject to USPAP and, under SR 2-4, must address the substantive matters of SR 2-2(a) to the extent possible and appropriate. Development still follows Standard 1, and the workfile must include a written summary of the oral report added within a reasonable time.
Why the Other Options Are Wrong
Option A: It is exempt from USPAP when the client accepts it by phone
Option A is wrong because an oral report is not exempt from USPAP when the client accepts it by phone. The delivery method does not remove USPAP obligations.
Option C: It replaces STANDARD 3 appraisal review and omits the effective date
Option C is wrong because an oral appraisal report does not replace Standard 3 appraisal review and does not omit the effective date. Appraisal review is a separate type of assignment, and the oral report addresses the substantive matters of SR 2-2(a) as far as possible and appropriate.
Option D: It is the same thing as a broker price opinion and so is not treated as an appraisal
Option D is wrong because an oral appraisal report is not the same as a broker price opinion. It is an appraisal reported orally and remains subject to USPAP development and reporting requirements.
Spoken, still standard
An oral report changes how results are delivered, not the development or workfile duties behind them.
How to use: Use this to reject answers that treat oral reports as exempt or as something other than an appraisal.
Exam Tip
Keep SR 2-2 written options and SR 2-4 oral reporting separate; an oral report is its own reporting route.
Common Mistakes to Avoid
- -Treating oral reports as exempt from USPAP
- -Confusing an oral appraisal with a broker price opinion
- -Skipping the written summary in the workfile
Concept Deep Dive
Analysis
This question tests how an oral real property appraisal report fits within USPAP Standards 1 and 2. An oral report is a reporting option under SR 2-4 for an appraisal developed under Standard 1. It does not waive development duties or the workfile requirements.
Background Knowledge
Standard 1 governs real property appraisal development and Standard 2 governs reporting. SR 2-2 sets out the written options, Appraisal Report and Restricted Appraisal Report, while SR 2-4 covers oral reports. Oral reports are common in litigation and consultations, and the workfile must hold the summary, the certification and needed support.
Real-World Application
An appraiser testifies in court to a value opinion for a contested property. The testimony is an oral appraisal report, so the appraiser completes Standard 1 development and keeps a workfile. A written summary of the testimony is added to the workfile within a reasonable time afterward.
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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