Standards Rule 1-1 requires an appraiser to avoid:
Correct Answer
B) A substantial error of omission or commission affecting the result
Why this is correct: Standards Rule 1-1(a) requires an appraiser to be competent and avoid errors that would significantly affect the appraisal's credibility. A 'substantial error of omission or commission' is a direct violation of this core competency rule. Why the other choices are wrong: 'Using more than three comparable sales in any grid' is wrong; there is no USPAP limit on the number of comparables. 'Consulting any published cost service during the analysis phase' is wrong; using cost services is a recognized method and is permitted. 'Developing more than one approach to value' is wrong; SR 1-4 may require only one approach for credible results. Exam tip: SR 1-1 is the foundation—it's about competence and avoiding significant errors.
Why This Is the Correct Answer
Why this is correct: Standards Rule 1-1(a) requires an appraiser to be competent and avoid errors that would significantly affect the appraisal's credibility. A 'substantial error of omission or commission' is a direct violation of this core competency rule. Why the other choices are wrong: 'Using more than three comparable sales in any grid' is wrong; there is no USPAP limit on the number of comparables. 'Consulting any published cost service during the analysis phase' is wrong; using cost services is a recognized method and is permitted. 'Developing more than one approach to value' is wrong; SR 1-4 may require only one approach for credible results. Exam tip: SR 1-1 is the foundation—it's about competence and avoiding significant errors.
More USPAP Questions
Which type of appraisal report may contain the appraiser's analyses, opinions, and conclusions but is intended for use by the client only?
How long must an appraiser retain the workfile for an appraisal assignment under USPAP?
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In developing a scope of work, an appraiser must consider all of the following factors EXCEPT:
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