The Scope of Work Rule applies to:
Correct Answer
A) All appraisal, appraisal review and appraisal consulting assignments
Why this is correct: The Scope of Work Rule (USPAP SR 1-2) applies universally to all appraisal, appraisal review, and appraisal consulting assignments, as it governs the process of determining an appropriate scope for credible results. Why the other choices are wrong: "Only appraisals prepared for federally related transactions" is wrong; USPAP applies to all valuation services, not just federally related ones. "Only assignments exceeding a value threshold" is wrong; USPAP has no value thresholds for applicability. "Only residential appraisal assignments" is wrong; the rule applies to all property types. Exam tip: USPAP's Scope of Work Rule is a foundational standard applicable to all appraisal practice, regardless of assignment type.
Why This Is the Correct Answer
Why this is correct: The Scope of Work Rule (USPAP SR 1-2) applies universally to all appraisal, appraisal review, and appraisal consulting assignments, as it governs the process of determining an appropriate scope for credible results. Why the other choices are wrong: "Only appraisals prepared for federally related transactions" is wrong; USPAP applies to all valuation services, not just federally related ones. "Only assignments exceeding a value threshold" is wrong; USPAP has no value thresholds for applicability. "Only residential appraisal assignments" is wrong; the rule applies to all property types. Exam tip: USPAP's Scope of Work Rule is a foundational standard applicable to all appraisal practice, regardless of assignment type.
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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An appraiser discovers a significant error in a completed appraisal report that affects the value conclusion. According to USPAP, the appraiser must:
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Standard 1 requires the appraiser to identify the problem before solving it. Which elements define the appraisal problem?