What responsibility does an appraiser retain for an error originating in a third-party database?
Correct Answer
B) Responsibility for whether reliance was reasonable
Why this is correct: USPAP holds the appraiser responsible for the reasonableness of relying on any source, including third-party databases. The appraiser must exercise professional judgment about the data's credibility and investigate obvious inconsistencies. Why the other choices are wrong: Naming the source in the report informs the reader but does not transfer responsibility. Full liability shared equally is incorrect; the appraiser's duty is for their own judgment, not the provider's. Relying on a database's disclaimer does not absolve the appraiser of their professional responsibility. Exam tip: You are responsible for your decision to use any data source.
Why This Is the Correct Answer
Why this is correct: USPAP holds the appraiser responsible for the reasonableness of relying on any source, including third-party databases. The appraiser must exercise professional judgment about the data's credibility and investigate obvious inconsistencies. Why the other choices are wrong: Naming the source in the report informs the reader but does not transfer responsibility. Full liability shared equally is incorrect; the appraiser's duty is for their own judgment, not the provider's. Relying on a database's disclaimer does not absolve the appraiser of their professional responsibility. Exam tip: You are responsible for your decision to use any data source.
More Emerging Methods Questions
How does an alternative inspection method affect the appraiser's disclosure obligations?
A collector's photographs show a condition the appraiser believes needs specialist assessment. What is the appropriate step?
Under current USPAP guidance, what is the output of an automated valuation model before an appraiser analyzes it?
Which assignment type still requires the appraiser to develop an opinion of value?
A model returns an estimate far from the appraiser's own conclusion. What is the appropriate response?
What does it mean that a tool cannot comply with USPAP?
An appraiser is asked to review an assignment where an AVM supplied the value. What does the review examine?
Why is the date a data extract was pulled worth recording in the workfile?
A desktop appraisal is best described as an assignment completed how?
How does the scope of work rule apply when a lender requests a desktop assignment?
People Also Study
Real Estate Market
13.6% of exam
Property Description
11.8% of exam
Land or Site Valuation
4.5% of exam
Sales Comparison Approach
16.4% of exam
Cost Approach
13.6% of exam