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 reconciliation Questions
An appraiser is told the property has no environmental contamination and cannot verify it. How should this be handled?
Reconciliation of the approaches to value is best described as which activity?
Significant appraisal assistance from a person who does not sign the report must be treated how?
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What does it mean to say an approach is not applicable to an assignment?
Which of the following is a written report option named in the current edition of USPAP?
What distinguishes qualitative from quantitative analysis in the sales comparison approach?
Why should the reconciliation address the quantity of evidence as well as its quality?
An appraisal report includes an addendum explaining the adjustment derivation. How does this affect compliance?
An extraordinary assumption proves false after the report is delivered. What follows?
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