What must a Restricted Appraisal Report contain prominently?
Correct Answer
D) A use restriction limiting who may rely on it
Why this is correct: A Restricted Appraisal Report contains less detail and analysis than a Summary Report. To prevent misunderstanding by unintended users, USPAP Standard 2 requires that it contain a conspicuous use restriction that clearly limits reliance to the client only. Why the other choices are wrong: A statement that all three approaches were used is not required; the scope of work determines the approaches. The name and address of every intended user is required, but the defining prominent feature is the use restriction. A complete summary of all data analyzed is characteristic of a Self-Contained or Summary Report, not the abbreviated Restricted Report. Exam tip: The 'restriction' is in the name. The most prominent thing in a Restricted Report must be the statement restricting who may use it.
Why This Is the Correct Answer
Why this is correct: A Restricted Appraisal Report contains less detail and analysis than a Summary Report. To prevent misunderstanding by unintended users, USPAP Standard 2 requires that it contain a conspicuous use restriction that clearly limits reliance to the client only. Why the other choices are wrong: A statement that all three approaches were used is not required; the scope of work determines the approaches. The name and address of every intended user is required, but the defining prominent feature is the use restriction. A complete summary of all data analyzed is characteristic of a Self-Contained or Summary Report, not the abbreviated Restricted Report. Exam tip: The 'restriction' is in the name. The most prominent thing in a Restricted Report must be the statement restricting who may use it.
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