Under the current edition of USPAP, how many written report options does Standard 2 provide for a real property appraisal?
Correct Answer
D) Two, distinguished by content level
Why this is correct: The current USPAP Standard 2 provides two written report options for real property appraisals: the Appraisal Report (more detailed) and the Restricted Appraisal Report (less detailed, with limitations on who may rely on it). The report must be clearly identified as one of these two types. Why the other choices are wrong: "Three, of differing levels of detail" is wrong; this describes an older USPAP structure that was consolidated. "Four, one for each intended use" is wrong; report type is not tied to a specific intended use. "One, with optional supplements" is wrong; there are two distinct report options. Exam tip: Know the two current USPAP report types: Appraisal Report and Restricted Appraisal Report.
Why This Is the Correct Answer
Why this is correct: The current USPAP Standard 2 provides two written report options for real property appraisals: the Appraisal Report (more detailed) and the Restricted Appraisal Report (less detailed, with limitations on who may rely on it). The report must be clearly identified as one of these two types. Why the other choices are wrong: "Three, of differing levels of detail" is wrong; this describes an older USPAP structure that was consolidated. "Four, one for each intended use" is wrong; report type is not tied to a specific intended use. "One, with optional supplements" is wrong; there are two distinct report options. Exam tip: Know the two current USPAP report types: Appraisal Report and Restricted Appraisal Report.
More USPAP Questions
Reconciliation of the approaches to value is best described as which activity?
Why should the reconciliation address the quantity of evidence as well as its quality?
How long must a report be retained compared with the workfile?
What distinguishes an appraisal review from an appraisal?
An appraiser reconciles to a value at the top of the indicated range because the client needs that figure. What has occurred?
What does it mean that a value opinion must be reasonable rather than merely arithmetically derived?
What should the reconciliation section explain to the reader?
How do the content obligations of the two report options differ with respect to the information analyzed?
The three approaches indicate $480,000, $495,000 and $610,000. What should the appraiser do first?
Three approaches indicate $1.02 million, $1.05 million and $1.04 million. How should this be reported?
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