Over what period must prior sales of the subject property be analyzed?
Correct Answer
C) The three years preceding the effective date
Why this is correct: USPAP Standards Rule 2-2(a)(viii) requires analysis of any prior sales of the subject property within the three years preceding the effective date. This provides direct market evidence that must be addressed. Why the other choices are wrong: "The prior twelve months before the effective date" is too short; the rule specifies three years. "The entire ownership history of the property" is not required. "Only the most recent transfer, whenever it occurred" ignores the three-year rule. Exam tip: Memorize the three-year rule for prior sales analysis.
Why This Is the Correct Answer
Why this is correct: USPAP Standards Rule 2-2(a)(viii) requires analysis of any prior sales of the subject property within the three years preceding the effective date. This provides direct market evidence that must be addressed. Why the other choices are wrong: "The prior twelve months before the effective date" is too short; the rule specifies three years. "The entire ownership history of the property" is not required. "Only the most recent transfer, whenever it occurred" ignores the three-year rule. Exam tip: Memorize the three-year rule for prior sales analysis.
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