Which statement describes the relationship between Standard 1 and Standard 2?
Correct Answer
A) One governs developing the opinion; the other, reporting it
Why this is correct: Standard 1 governs the process of developing an appraisal (data collection, analysis, reconciliation). Standard 2 governs the process of reporting the appraisal (communication of the results in a manner that is not misleading). Both apply to every assignment. Why the other choices are wrong: The standards are not split by property type. Both bind the appraiser. They are not alternative tracks; both must be followed. Exam tip: Std 1 = Develop. Std 2 = Report. Every assignment needs both.
Why This Is the Correct Answer
Why this is correct: Standard 1 governs the process of developing an appraisal (data collection, analysis, reconciliation). Standard 2 governs the process of reporting the appraisal (communication of the results in a manner that is not misleading). Both apply to every assignment. Why the other choices are wrong: The standards are not split by property type. Both bind the appraiser. They are not alternative tracks; both must be followed. Exam tip: Std 1 = Develop. Std 2 = Report. Every assignment needs both.
More USPAP Questions
Which statement best defines a hypothetical condition under USPAP?
According to the Competency Rule, if an appraiser lacks the knowledge and experience to complete an assignment competently, which action is NOT acceptable?
An appraiser runs only the sales comparison approach on a standard tract home and omits the cost and income approaches. Under Standard 1 this is:
A value opinion for a subdivision as if fully built out two years from now is what kind of assignment, and what does it require?
A hypothetical condition differs from an extraordinary assumption in that a hypothetical condition:
An appraiser must disclose in the certification whether they have:
A client-imposed requirement — 'use only comps from our approved list' — is best described as:
Under Standard 1, when developing a real property appraisal, an appraiser must:
The certification required by Standards Rule 2-3 must be signed by:
According to Standard 1, when developing an opinion of market value, an appraiser must analyze:
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An appraiser is valuing a single-family residence and determines that recent comparable sales are limited, but cost and income approaches are not applicable. According to USPAP, the appraiser should:
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Standards Rule 1-2(e) requires the appraiser to analyze the effect of any personal property, trade fixtures, or intangible items that are not real property but are included in the appraisal. What must the appraiser do if such items have no contributory value?