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 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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