What is the key difference between a hypothetical condition and an extraordinary assumption?
Correct Answer
D) A hypothetical condition is contrary to known fact; an extraordinary assumption concerns uncertain information
A hypothetical condition is contrary to what the appraiser knows exists on the effective date. An extraordinary assumption concerns uncertain assignment-specific information that, if found false, could change opinions or conclusions. Both must be disclosed as applicable; neither is defined by relative seriousness.
Why This Is the Correct Answer
A hypothetical condition assumes something contrary to what is known on the effective date; an extraordinary assumption concerns uncertain information that could change conclusions if false.
More USPAP Questions
Which statement best defines a hypothetical condition under USPAP?
According to the Competency Rule, if an appraiser lacks the knowledge and experience to complete an assignment competently, which action is NOT acceptable?
A hypothetical condition differs from an extraordinary assumption in that a hypothetical condition:
An appraiser is competent to appraise single-family homes but receives an assignment to appraise a shopping center. To achieve competency, the appraiser could:
An appraiser must disclose in the certification whether they have:
A client-imposed requirement — 'use only comps from our approved list' — is best described as:
A client asks for a current-effective-date appraisal of land as though commercial zoning were already in place, although the appraiser knows the current zoning is residential. Assuming the premise is appropriate and produces credible results, how should it be treated?
Under USPAP’s Ethics Rule, which statement best describes when confidential information or assignment results may be disclosed?
An appraiser values property for estate-tax purposes as of the owner’s documented actual date of death six months ago. What does the past valuation date represent?
According to Standard 1, when must an appraiser analyze the effect of any personal property, trade fixtures, or intangible items on the value of the real property?
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