What distinguishes a form report from a narrative report?
Correct Answer
D) The format differs, not the obligations that apply
Why this is correct: USPAP requirements apply equally regardless of report format. A form report organizes content into fields but must still include all mandated disclosures, often via addenda. Why the other choices are wrong: 'Only narrative reports may be used for lending' is false; form reports like the URAR are standard for lending. 'Form reports are exempt from Standard 2 content' contradicts USPAP, which applies to all report types. 'Form reports require no certification be signed' is incorrect; certifications are always required. Exam tip: Format is a presentation choice; USPAP obligations are immutable.
Why This Is the Correct Answer
Why this is correct: USPAP requirements apply equally regardless of report format. A form report organizes content into fields but must still include all mandated disclosures, often via addenda. Why the other choices are wrong: 'Only narrative reports may be used for lending' is false; form reports like the URAR are standard for lending. 'Form reports are exempt from Standard 2 content' contradicts USPAP, which applies to all report types. 'Form reports require no certification be signed' is incorrect; certifications are always required. Exam tip: Format is a presentation choice; USPAP obligations are immutable.
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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Which of the following is a written report option named in the current edition of USPAP?
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Why should the reconciliation address the quantity of evidence as well as its quality?
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An extraordinary assumption proves false after the report is delivered. What follows?
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