What subject-identification duty applies under SR 1-2(e)?
Correct Answer
D) Identify relevant characteristics from sources believed reliable
Identify the subject and characteristics relevant to the value type and intended use using sources reasonably believed reliable. A street address alone may be insufficient; lender identity does not excuse problem identification.
Why This Is the Correct Answer
Option D is correct because SR 1-2(e) requires the appraiser to identify, from sources the appraiser reasonably believes to be reliable, the characteristics of the property relevant to the type and definition of value and intended use. This ties identification to the assignment's needs rather than to a fixed minimum such as an address.
Why the Other Options Are Wrong
Option A: Use only its street address, whatever the assignment requires
Option A is wrong because using only the street address, whatever the assignment requires, ignores the duty to identify the relevant characteristics. A street address alone may be insufficient to describe the subject for the value type and intended use.
Option B: Omit the property characteristics whenever the client is a mortgage lender
Option B is wrong because a mortgage lender client does not excuse identifying the property characteristics. Lender identity has no effect on the problem-identification duty in SR 1-2(e).
Option C: Replace the property description with a confidentiality label
Option C is wrong because replacing the property description with a confidentiality label does not identify anything. Confidentiality governs disclosure of information, not whether the appraiser must identify the subject's relevant characteristics.
Relevant, from reliable sources
SR 1-2(e) has two R's: identify what is Relevant, using sources believed Reliable.
How to use: Use this to pick the answer that ties identification to relevance and reliable sources.
Exam Tip
Options that limit identification to an address, a label or a client type are usually distractors; look for relevance to value type and intended use.
Common Mistakes to Avoid
- -Treating the street address as a complete subject identification
- -Believing a lender client reduces identification duties
- -Confusing confidentiality with the duty to describe the subject
Concept Deep Dive
Analysis
This question tests the subject-identification duty in Standards Rule 1-2(e). The appraiser must identify the property characteristics relevant to the type and definition of value and intended use, using sources reasonably believed reliable. Eliminate options that shrink or skip identification for convenience or client type.
Background Knowledge
Problem identification under SR 1-2 includes identifying the client, intended users, intended use, type and definition of value, effective date, subject characteristics and assignment conditions. Relevant characteristics can include location, physical, legal and economic attributes and the interest appraised. The appraiser relies on sources reasonably believed reliable.
Real-World Application
An appraiser receives an order listing only a street address for a property that public records show has an accessory dwelling unit and an easement. The appraiser checks records, the site and other reliable sources to identify the unit, the easement and other relevant characteristics. These details are needed for the market value opinion the lender requested.
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