One report treats known contamination as already remediated; another presumes an unverified permit is valid. What distinguishes the hypothetical condition from the extraordinary assumption?
Correct Answer
D) A hypothetical contradicts known fact; an assumption treats the uncertain as true
Why this is correct: A hypothetical condition is an assumption contrary to known fact (e.g., treating known contamination as remediated). An extraordinary assumption treats uncertain information as true (e.g., presuming an unverified permit is valid). Both require disclosure. Why the other choices are wrong: The distinction is not based on land vs. improvements. Both are permitted with disclosure, not forbidden. Both require disclosure. Exam tip: Key question: Does it contradict a known fact (hypothetical) or address an uncertainty (extraordinary assumption)?
Why This Is the Correct Answer
Why this is correct: A hypothetical condition is an assumption contrary to known fact (e.g., treating known contamination as remediated). An extraordinary assumption treats uncertain information as true (e.g., presuming an unverified permit is valid). Both require disclosure. Why the other choices are wrong: The distinction is not based on land vs. improvements. Both are permitted with disclosure, not forbidden. Both require disclosure. Exam tip: Key question: Does it contradict a known fact (hypothetical) or address an uncertainty (extraordinary assumption)?
More USPAP Questions
Which statement best defines a hypothetical condition under USPAP?
According to the Competency Rule, if an appraiser lacks the knowledge and experience to complete an assignment competently, which action is NOT acceptable?
An appraiser runs only the sales comparison approach on a standard tract home and omits the cost and income approaches. Under Standard 1 this is:
A value opinion for a subdivision as if fully built out two years from now is what kind of assignment, and what does it require?
A hypothetical condition differs from an extraordinary assumption in that a hypothetical condition:
An appraiser must disclose in the certification whether they have:
A client-imposed requirement — 'use only comps from our approved list' — is best described as:
Under Standard 1, when developing a real property appraisal, an appraiser must:
The certification required by Standards Rule 2-3 must be signed by:
According to Standard 1, when developing an opinion of market value, an appraiser must analyze:
People Also Study
Real Estate Market
13.6% of exam
Property Description
11.8% of exam
Land or Site Valuation
4.5% of exam
Sales Comparison Approach
16.4% of exam
Cost Approach
13.6% of exam