Under Standards Rule 2-1, a written or oral report must:
Correct Answer
D) Clearly and accurately set forth the appraisal, not be misleading
Why this is correct: Standards Rule 2-1's core requirement is that each written or oral appraisal report must clearly and accurately set forth the appraisal in a manner that is not misleading. This encompasses clarity, sufficient information, and proper disclosure of assumptions. Why the other choices are wrong: "Include photographs of every comparable used" is not a universal USPAP requirement; it depends on intended use and client agreement. "Exceed a minimum page count set by the standards" is false; USPAP sets no page minimums. "Be formally reviewed and approved by a second appraiser before delivery" is not a USPAP requirement for every report. Exam tip: The three key report requirements under SR 2-1 are clarity, sufficiency, and prominent disclosure of extraordinary assumptions/hypothetical conditions.
Why This Is the Correct Answer
Why this is correct: Standards Rule 2-1's core requirement is that each written or oral appraisal report must clearly and accurately set forth the appraisal in a manner that is not misleading. This encompasses clarity, sufficient information, and proper disclosure of assumptions. Why the other choices are wrong: "Include photographs of every comparable used" is not a universal USPAP requirement; it depends on intended use and client agreement. "Exceed a minimum page count set by the standards" is false; USPAP sets no page minimums. "Be formally reviewed and approved by a second appraiser before delivery" is not a USPAP requirement for every report. Exam tip: The three key report requirements under SR 2-1 are clarity, sufficiency, and prominent disclosure of extraordinary assumptions/hypothetical conditions.
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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