When an appraiser relies on the work of others in an assignment, the appraiser must:
Correct Answer
C) Take responsibility for that work in the results
Why this is correct: USPAP's ethics rule requires the signing appraiser to take responsibility for all work used in the assignment, including that performed by others. This ensures accountability for the final conclusions. Why the other choices are wrong: "Exclude that work from the certification" is wrong because the appraiser cannot disclaim reliance on the work; it is part of the analysis. "Name the other party as a co-client" is wrong because the client relationship is with the appraiser, not the third-party specialist. "Obtain the other party's signature on the report" is wrong; while the source may be cited, the appraiser's signature certifies the entire report. Exam tip: Remember, the appraiser's signature certifies the entire report's content, including any third-party work relied upon.
Why This Is the Correct Answer
Why this is correct: USPAP's ethics rule requires the signing appraiser to take responsibility for all work used in the assignment, including that performed by others. This ensures accountability for the final conclusions. Why the other choices are wrong: "Exclude that work from the certification" is wrong because the appraiser cannot disclaim reliance on the work; it is part of the analysis. "Name the other party as a co-client" is wrong because the client relationship is with the appraiser, not the third-party specialist. "Obtain the other party's signature on the report" is wrong; while the source may be cited, the appraiser's signature certifies the entire report. Exam tip: Remember, the appraiser's signature certifies the entire report's content, including any third-party work relied upon.
More USPAP Questions
Which type of appraisal report may contain the appraiser's analyses, opinions, and conclusions but is intended for use by the client only?
How long must an appraiser retain the workfile for an appraisal assignment under USPAP?
If an appraiser uses a hypothetical condition that the subject property is 10% larger than it actually is, this must be:
Under Standard 1, when developing a real property appraisal, an appraiser must:
An appraiser accepts an assignment to appraise a specialized industrial property but has never appraised this property type before. To comply with the Competency Rule, the appraiser:
According to the Scope of Work Rule, the scope of work must be appropriate to the:
According to Standard 1, when developing an opinion of market value, an appraiser must analyze:
A lender emails: 'We need at least $450,000 to make this loan work — can you take the assignment?' Accepting on that basis is:
An appraiser is developing an opinion of market value for a 20-unit apartment building. The appraiser finds three comparable sales with the following information: Sale 1: 18 units, sold for $1,800,000; Sale 2: 22 units, sold for $2,200,000; Sale 3: 24 units, sold for $2,280,000. What is the average price per unit for these comparables?
In developing a scope of work, an appraiser must consider all of the following factors EXCEPT:
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