An appraiser orally communicates a completed appraisal opinion to the client. How is that communication treated under USPAP?
Correct Answer
B) It is an oral report and is subject to applicable reporting and recordkeeping duties
A report can be written or oral communication of an appraisal or appraisal review transmitted to the client or a client-authorized party upon completion of the assignment. Oral form does not eliminate applicable reporting duties or workfile requirements. Keep the required oral summary or testimony transcript and signed dated certification, together with necessary supporting material.
Why This Is the Correct Answer
Option B is correct because USPAP defines a report as any communication, written or oral, of an appraisal transmitted to the client upon completion of the assignment. An oral report remains subject to applicable reporting duties, and its workfile must be sufficient for the appraiser to produce an Appraisal Report.
Why the Other Options Are Wrong
Option A: It cannot be a report because no paper form or other written document was delivered to the client
Option A is wrong because a report does not require a paper form or other written document. USPAP expressly includes oral communications in the definition of a report.
Option C: It is a workfile entry, because spoken words are not reports
Option C is wrong because spoken words can be a report. The workfile is the supporting record the appraiser keeps, not the communication delivered to the client.
Option D: It becomes a report once a complaint is filed
Option D is wrong because report status does not depend on a complaint being filed. The communication is a report when the completed opinion is transmitted to the client.
Spoken or written, still reported
A report is defined by delivering a completed opinion to the client, not by the medium. Talking counts.
How to use: Use this when a question asks whether an oral opinion triggers reporting or workfile duties.
Exam Tip
If an option says something is not a report only because it was not written, it conflicts with the USPAP definition.
Common Mistakes to Avoid
- -Assuming only written documents are reports
- -Skipping workfile requirements for oral reports
- -Confusing the workfile with the report itself
Concept Deep Dive
Analysis
This question tests the USPAP definition of a report. Because a report is any communication of an appraisal, written or oral, transmitted to the client upon completion, an oral communication of a completed opinion is an oral report with its own duties.
Background Knowledge
USPAP recognizes written and oral reports. For an oral report, the workfile must include material such as a summary of the oral report or a testimony transcript, the signed and dated certification, and support sufficient to produce an Appraisal Report.
Real-World Application
An appraiser tells a client by phone the final value opinion on a completed assignment. The appraiser documents a summary of the oral report and keeps the signed certification and supporting data in the workfile.
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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