Which duty applies under SR 3-1 when developing an appraisal review?
Correct Answer
D) Correctly employ review methods and avoid significant or careless errors
SR 3-1 addresses recognized appraisal-review methods and techniques, substantive errors of omission or commission significantly affecting the review, and careless or negligent review services, including cumulative errors affecting credibility. Standard 3’s broader development framework also requires identification of the review problem and appropriate scope. An oral format or sole client does not eliminate the applicable workfile duty.
Why This Is the Correct Answer
Option D is correct because SR 3-1 requires the reviewer to be aware of, understand and correctly employ the methods and techniques necessary for a credible appraisal review. It also requires the reviewer not to commit a substantial error of omission or commission and not to render review services in a careless or negligent manner.
Why the Other Options Are Wrong
Option A: Omit the workfile whenever the review report is delivered orally
Option A is wrong because an oral review report does not allow the reviewer to omit the workfile. The workfile duty applies regardless of report format.
Option B: Apply only real property development rules and ignore review methods
Option B is wrong because a reviewer does not apply only real property development rules and ignore review methods. Standard 3 governs appraisal review and requires correct use of review methods and techniques.
Option C: Replace the original appraiser’s signature with the reviewer’s own signature
Option C is wrong because a reviewer does not replace the original appraiser's signature with the reviewer's own. The reviewer develops and reports a separate review opinion.
Standard 3 reviews the work
Standard 1 builds the appraisal and Standard 3 reviews it, and both start with the same general duties: use correct methods and avoid serious or careless errors.
How to use: Use this to match review questions to Standard 3 rather than Standard 1.
Exam Tip
When a choice paraphrases the general development duties of correct methods and no significant or careless errors, it likely matches SR 1-1 or SR 3-1.
Common Mistakes to Avoid
- -Thinking review assignments follow only Standard 1
- -Skipping the workfile for an oral review
- -Signing over or altering the original appraiser's report
Concept Deep Dive
Analysis
This question tests the general development duties for appraisal review under Standards Rule 3-1. Look for the choice that mirrors those duties: correctly employing review methods and avoiding substantial or careless errors.
Background Knowledge
Standard 3 covers appraisal review development and reporting. Like Standard 1 for appraisals, SR 3-1 sets general competence duties, and the reviewer must also identify the review problem and an appropriate scope of work.
Real-World Application
A lender's review appraiser checks a residential report for adequate comparable support. The reviewer uses accepted review techniques, documents findings in a workfile, and avoids conclusions not supported by the evidence.
More USPAP Questions
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Under 2024 USPAP Standard 1, which listed assignment element must be identified in developing a real property appraisal?
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According to USPAP, what is the primary purpose of the Ethics Rule?
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Which list gives the sections of the 2024 USPAP Ethics Rule?
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