Under 2024 USPAP Standards Rule 2-4, which statement correctly describes an SR 2-4 expectation for an oral real property appraisal report?
Correct Answer
C) SR 2-4 requires addressing Appraisal Report matters where possible and appropriate
An oral real-property appraisal report addresses the substantive matters of a written Appraisal Report to the extent possible and appropriate. The workfile needs an oral-report summary and signed and dated certification; oral delivery does not excuse development or recordkeeping.
Why This Is the Correct Answer
Option C is correct because SR 2-4 states that, to the extent both possible and appropriate, an oral real property appraisal report must address the substantive matters set forth in SR 2-2(a), the Appraisal Report requirements. Option C accurately paraphrases this. The workfile must still contain support, including a summary of the oral report.
Why the Other Options Are Wrong
Option A: SR 2-4 lets an oral report skip all workfile support once a value is spoken
Option A is wrong because an oral report does not let the appraiser skip workfile support once a value is spoken. The workfile requirements continue to apply, including documentation of the oral report.
Option B: SR 2-4 replaces STANDARD 1 development and removes the need for a workfile
Option B is wrong because SR 2-4 is a reporting rule; it does not replace Standard 1 development requirements or remove the need for a workfile.
Option D: SR 2-4 applies only to written Restricted Appraisal Reports and never to oral reports
Option D is wrong because SR 2-4 governs oral real property appraisal reports. It does not apply only to written Restricted Appraisal Reports, and it plainly covers oral reports.
Spoken report, same substance
An oral report still covers the substance of a written Appraisal Report where possible and appropriate; speaking it does not shrink the work or the workfile.
How to use: Use this when an option suggests an oral report reduces development or recordkeeping duties.
Exam Tip
Watch for options claiming oral reports skip development or workfile requirements. Reporting format does not change development obligations.
Common Mistakes to Avoid
- -Thinking oral reports have no workfile requirements
- -Believing a reporting rule replaces Standard 1 development
- -Assuming oral reports are outside USPAP reporting rules
Concept Deep Dive
Analysis
This question tests Standards Rule 2-4 on oral real property appraisal reports. An oral report must address the substantive matters of a written Appraisal Report to the extent possible and appropriate. Oral delivery does not excuse development under Standard 1 or workfile obligations.
Background Knowledge
USPAP allows real property appraisal results to be communicated orally. The oral report should cover the substance of an Appraisal Report as far as possible and appropriate. Development requirements under Standard 1 and the Record Keeping Rule continue to apply.
Real-World Application
During a deposition, an appraiser gives an oral report of a completed value opinion. The appraiser addresses the key Appraisal Report matters as far as possible and appropriate. Afterward, the workfile includes a summary of the oral report and the required certification.
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?
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