Which communication is an appraisal report under USPAP?
Correct Answer
A) A communication of completed results to the client or an authorized party
A report communicates completed appraisal or appraisal-review results to the client or an authorized recipient. It can be oral or written; internal workfile notes alone are not the report.
Why This Is the Correct Answer
Option A is correct because USPAP defines a report as any communication, written or oral, of an appraisal or appraisal review transmitted to the client or a party authorized by the client upon completion of an assignment. The key elements are communication of completed results to the client or an authorized party. The format and medium do not determine whether it is a report.
Why the Other Options Are Wrong
Option B: Only a Form 1004, regardless of the type of assignment being performed
Option B is wrong because a report is not limited to one specific form. Any written or oral communication of completed appraisal results to the client or an authorized party can be a report, regardless of which form, if any, is used.
Option C: A private workfile note that is not communicated to anyone
Option C is wrong because a private workfile note that is not communicated to anyone has not been transmitted to the client or an authorized party. Workfile notes support the assignment but are not the report.
Option D: A paper report bearing a wet-ink signature, but not an oral report
Option D is wrong because USPAP expressly includes oral communications in the definition of a report. A wet-ink signature on paper is not what makes a communication a report.
Report means results delivered
A report is completed results delivered to the client or someone the client authorized, in writing or out loud.
How to use: Use this to test whether a communication counts as a report by asking if completed results were transmitted.
Exam Tip
Watch for options that restrict reports to written, signed or form-based documents. USPAP includes oral reports.
Common Mistakes to Avoid
- -Believing only written reports are reports under USPAP
- -Treating a specific form as the only acceptable report
- -Thinking workfile notes count as the report
Concept Deep Dive
Analysis
This question tests the USPAP definition of a report. A report is any communication, written or oral, of an appraisal or appraisal review transmitted to the client or a party the client authorizes upon completion of an assignment. Options that limit reports to a particular form or medium, or that describe uncommunicated notes, do not fit.
Background Knowledge
USPAP recognizes both written and oral appraisal reports. What makes a communication a report is that it conveys completed appraisal or appraisal review results to the client or an authorized party. The workfile holds the supporting documentation, which is separate from the report itself.
Real-World Application
An attorney calls an appraiser and asks for the completed value conclusion before the written report is ready. If the appraiser states the completed appraisal results to the client, that oral communication is itself a report. The appraiser must meet the oral report requirements and keep the related workfile documentation.
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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