Which item belongs in the assumptions and limiting conditions rather than in the reconciliation?
Correct Answer
D) A statement that title is assumed to be good
Why this is correct: A statement that title is assumed to be good is a typical assumption that defines the boundaries of the appraisal assignment. It belongs in the assumptions and limiting conditions section, which outlines the premises accepted as true for the analysis. Why the other choices are wrong: The weight assigned to each of the approaches is part of the reconciliation discussion. The reason an approach was not developed is a scope disclosure, often in the reconciliation or scope section. The final opinion of value being reported is the conclusion, typically stated separately. Exam tip: Assumptions define the appraisal's framework; reconciliation discusses how evidence was weighed.
Why This Is the Correct Answer
Why this is correct: A statement that title is assumed to be good is a typical assumption that defines the boundaries of the appraisal assignment. It belongs in the assumptions and limiting conditions section, which outlines the premises accepted as true for the analysis. Why the other choices are wrong: The weight assigned to each of the approaches is part of the reconciliation discussion. The reason an approach was not developed is a scope disclosure, often in the reconciliation or scope section. The final opinion of value being reported is the conclusion, typically stated separately. Exam tip: Assumptions define the appraisal's framework; reconciliation discusses how evidence was weighed.
More reconciliation Questions
An appraiser is told the property has no environmental contamination and cannot verify it. How should this be handled?
Reconciliation of the approaches to value is best described as which activity?
Significant appraisal assistance from a person who does not sign the report must be treated how?
In appraising a hotel as a going concern, what must be allocated?
What does it mean to say an approach is not applicable to an assignment?
Which of the following is a written report option named in the current edition of USPAP?
What distinguishes qualitative from quantitative analysis in the sales comparison approach?
Why should the reconciliation address the quantity of evidence as well as its quality?
An appraisal report includes an addendum explaining the adjustment derivation. How does this affect compliance?
An extraordinary assumption proves false after the report is delivered. What follows?
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