A real-property appraisal contains several individually small errors whose combined effect materially undermines its credibility. Which statement best reflects SR 1-1?
Correct Answer
B) The combined pattern can violate the prohibition on careless or negligent service
SR 1-1 addresses substantial errors that significantly affect an appraisal and careless or negligent service, including a series of errors that individually might not significantly affect results but collectively affect credibility. A checklist or signature status does not cure deficient analysis. Evaluate the actual effect of the errors and the adequacy of the work rather than assuming individually small errors are immaterial.
Why This Is the Correct Answer
Option B is correct because SR 1-1(c) says an appraiser must not render services in a careless or negligent manner, such as by making a series of errors that individually might not significantly affect results but in the aggregate affect credibility. The facts describe exactly that pattern. The test is the combined effect on credibility, not the size of any single error.
Why the Other Options Are Wrong
Option A: The work is compliant whenever no individual error is large enough to change the value
Option A says the work is compliant whenever no individual error is large enough to change the value. SR 1-1(c) expressly reaches errors that are individually small but together affect credibility, so judging each error alone misses the rule.
Option C: A completed quality-control checklist cures the errors
Option C says a completed quality-control checklist cures the errors. A checklist does not correct deficient analysis; the errors and their combined effect on credibility remain.
Option D: Development errors are excused once the report is signed
Option D says development errors are excused once the report is signed. Signing the report does not excuse errors; it makes the appraiser responsible for the work certified.
Small errors add up
Many small slips can sink credibility as surely as one big error. SR 1-1(c) looks at the sum.
How to use: Use this when a question describes multiple minor mistakes in an appraisal.
Exam Tip
When a question stresses the combined effect of small errors, connect it to the careless or negligent service prohibition in SR 1-1(c).
Common Mistakes to Avoid
- -Judging each error in isolation rather than in aggregate
- -Believing a checklist or signature cures deficient work
- -Assuming only value-changing errors matter under SR 1-1
Concept Deep Dive
Analysis
This question tests SR 1-1(c), which prohibits careless or negligent appraisal services. The rule specifically describes a series of errors that individually might not significantly affect the results but in the aggregate affect the credibility of those results. Several small errors that together undermine credibility therefore can violate the rule.
Background Knowledge
SR 1-1 sets general development duties: know and correctly use recognized methods, avoid substantial errors of omission or commission that significantly affect an appraisal, and avoid careless or negligent work. The aggregate-error provision means credibility is judged by the work as a whole.
Real-World Application
A reviewer finds an appraisal with a wrong room count, a misreported sale date, an inconsistent site size, and an arithmetic slip in one adjustment. No single item changes the value much, but together they leave the reviewer unable to rely on the report, which points to careless or negligent service.
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