A signing real property appraiser relies on work performed by an appraiser who does not sign the certification. What does 2024 USPAP require of the signing appraiser?
Correct Answer
C) Have a reasonable basis for the other appraiser’s competence and no reason to doubt the work’s credibility.
The signer is responsible for deciding to rely on work by nonsigning appraisers or others. The signer needs a reasonable basis to believe the person is competent and must have no reason to doubt the work is credible. A credential alone is not a universal substitute for that assessment. Required identification of significant real property appraisal assistance does not create an automatic requirement that every contributor cosign the report.
Why This Is the Correct Answer
Option C is correct because USPAP states that the signing appraiser must have a reasonable basis for believing those performing the work are competent and must have no reason to doubt that their work is credible. The signer is responsible for the decision to rely on the work of nonsigning appraisers and others. Option C restates both of those conditions.
Why the Other Options Are Wrong
Option A: Accept the work as is, because its author holds an appraisal credential.
Option A says to accept the work as is because its author holds an appraisal credential. A credential alone does not replace the signer's own assessment of competence and credibility, and the signer still carries responsibility for deciding to rely on the work.
Option B: Make the other appraiser a co-client of the assignment so that responsibility for the work transfers to that appraiser.
Option B says to make the other appraiser a co-client so responsibility transfers to that appraiser. A co-worker on the assignment is not a client, and USPAP places responsibility for the decision to rely on the work with the signing appraiser; it does not transfer.
Option D: Obtain the other appraiser’s signature on the certification before relying on it.
Option D says to obtain the other appraiser's signature on the certification before relying on the work. USPAP specifically addresses reliance on people who do not sign, and identifying significant assistance does not create a requirement that every contributor cosign the report.
Signer owns the reliance
Think of two checks before relying on someone else's work: Competent person, Credible work. The signer's name is on the line, so the signer makes both checks.
How to use: Use this when a question asks who is responsible for work done by a nonsigning appraiser or assistant.
Exam Tip
When a question asks about relying on others' work, pick the answer that keeps responsibility with the signer and requires a reasonable basis for competence plus no reason to doubt credibility.
Common Mistakes to Avoid
- -Assuming a license or certification alone makes another person's work reliable
- -Believing responsibility shifts to the person who did the work
- -Thinking every contributor must sign the certification
Concept Deep Dive
Analysis
This question tests what USPAP expects of a signing appraiser who uses work done by someone who does not sign the certification. The key idea is that the signer keeps responsibility for the decision to rely on that work. To reason to the answer, look for the option that describes the signer's own judgment about the other person's competence and the work's credibility, rather than a shortcut that shifts or skips that judgment.
Background Knowledge
USPAP allows appraisers to rely on work by others, such as trainees or other professionals, who do not sign the certification. The signing appraiser remains accountable for that reliance and must have a reasonable basis to believe the contributors are competent and no reason to doubt that their work is credible.
Real-World Application
A certified appraiser uses a trainee's comparable sales research and measurements in a residential report but signs the certification alone. Before relying on that work, the supervisor considers the trainee's training and track record and checks the data for anything that looks doubtful. If the supervisor has reason to doubt the work, it should be verified or redone before it supports the value opinion.
More USPAP Questions
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