Written appraisal reports may be communicated in how many options under the current reporting structure?
Correct Answer
A) Two — the Appraisal Report and the Restricted Appraisal Report
Why this is correct: Under the current USPAP reporting structure (Standard 2), there are two written report options: the Appraisal Report and the Restricted Appraisal Report. The Restricted report has use limitations and requires the workfile for understanding. Why the other choices are wrong: 'Three — self-contained, summary and restricted use reports' describes the old, pre-2014 structure, which is no longer in effect. 'Four — one for each of the recognized property classifications' is incorrect; report options are not based on property type. 'One standard format, with permitted variations by property type' is wrong; there are two distinct report types. Exam tip: Know the two current report types: Appraisal Report and Restricted Appraisal Report.
Why This Is the Correct Answer
Why this is correct: Under the current USPAP reporting structure (Standard 2), there are two written report options: the Appraisal Report and the Restricted Appraisal Report. The Restricted report has use limitations and requires the workfile for understanding. Why the other choices are wrong: 'Three — self-contained, summary and restricted use reports' describes the old, pre-2014 structure, which is no longer in effect. 'Four — one for each of the recognized property classifications' is incorrect; report options are not based on property type. 'One standard format, with permitted variations by property type' is wrong; there are two distinct report types. Exam tip: Know the two current report types: Appraisal Report and Restricted Appraisal Report.
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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Which of the following is a requirement for achieving competency under USPAP when an appraiser lacks necessary knowledge or experience?
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An appraiser assumes that a property has 5 acres when it actually has 4.8 acres, and this assumption may affect the assignment results. This is an example of: