The extent to which the property was inspected — or was not inspected at all — must be:
Correct Answer
C) Disclosed in the report as part of the scope of work performed
Why this is correct: USPAP's Scope of Work Rule requires disclosure of the extent of the property inspection (e.g., interior, exterior, or no inspection) so intended users understand the basis for the appraiser's condition statements and value conclusion. Why the other choices are wrong: "Kept private to protect the appraiser" violates disclosure requirements. "Reported only when the client specifically asks" is wrong; disclosure is mandatory. "Standardized across all assignments" is false; scope is assignment-specific. Exam tip: Always clearly state what you did and did not inspect in the report.
Why This Is the Correct Answer
Why this is correct: USPAP's Scope of Work Rule requires disclosure of the extent of the property inspection (e.g., interior, exterior, or no inspection) so intended users understand the basis for the appraiser's condition statements and value conclusion. Why the other choices are wrong: "Kept private to protect the appraiser" violates disclosure requirements. "Reported only when the client specifically asks" is wrong; disclosure is mandatory. "Standardized across all assignments" is false; scope is assignment-specific. Exam tip: Always clearly state what you did and did not inspect in the report.
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?
If an appraiser uses a hypothetical condition that the subject property is 10% larger than it actually is, this must be:
Under Standard 1, when developing a real property appraisal, an appraiser must:
An appraiser accepts an assignment to appraise a specialized industrial property but has never appraised this property type before. To comply with the Competency Rule, the appraiser:
According to the Scope of Work Rule, the scope of work must be appropriate to the:
According to Standard 1, when developing an opinion of market value, an appraiser must analyze:
A lender emails: 'We need at least $450,000 to make this loan work — can you take the assignment?' Accepting on that basis is:
An appraiser is developing an opinion of market value for a 20-unit apartment building. The appraiser finds three comparable sales with the following information: Sale 1: 18 units, sold for $1,800,000; Sale 2: 22 units, sold for $2,200,000; Sale 3: 24 units, sold for $2,280,000. What is the average price per unit for these comparables?
In developing a scope of work, an appraiser must consider all of the following factors EXCEPT:
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Assignment conditions include all of the following except:
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An appraiser receives an assignment to appraise a property for estate tax purposes. The appraiser has performed many residential appraisals but has never done an estate tax valuation. Under the Competency Rule, the appraiser may: