ARA Report Writing & Ethical Standards 5

Question 1

Under USPAP, an 'intended user' is defined as:

Accepted Answer

The client and any other party identified by the appraiser as a user of the report

Answer

Any party who reads the appraisal report

Answer

Only the lender or government agency ordering the report

Answer

The property owner and all adjoining landowners

Question 2

A rural appraisal report that includes a personal property contribution (e.g., grain bins) must:

Accepted Answer

Separately identify and, if included in value, allocate the personal property component

Answer

Omit personal property entirely from the value estimate

Answer

Always exclude personal property from federally related transactions

Answer

List personal property at original purchase cost

Question 3

An appraiser performing a review appraisal of a rural property report must, at a minimum:

Accepted Answer

Form an opinion about the quality of the work under review

Answer

Develop an independent opinion of value in every review

Answer

Inspect the subject property personally

Answer

Contact the original appraiser for clarification

Question 4

When a rural appraisal report is used in an eminent domain proceeding, the appraiser must be aware that:

Accepted Answer

Jurisdictional law may define compensation differently than USPAP market value

Answer

Market value under eminent domain always equals assessed value

Answer

Severance damages are excluded from all appraisal reports

Answer

The appraiser must advocate for the property owner's position

Question 5

Which practice is consistent with USPAP's Ethics Rule regarding advertising?

Accepted Answer

Accurately stating credentials, services offered, and geographic competency

Answer

Claiming to be the only ARA appraiser in the state without verification

Answer

Guaranteeing faster turnaround than competitors

Answer

Advertising that results are always favorable to lenders

Question 6

If a rural appraisal's scope of work includes an exterior-only inspection, the appraiser must:

Accepted Answer

Disclose the limitation and explain how it may affect the reliability of the value conclusion

Answer

Upgrade to an interior inspection if the lender requests it without additional fee

Answer

Automatically apply a 10% downward adjustment for unseen interior conditions

Answer

Refuse the assignment as noncompliant with USPAP

Question 7

The USPAP definition of 'market value' assumes which of the following conditions?

Accepted Answer

Both buyer and seller are typically motivated and acting in their own best interests

Answer

The seller is under duress to sell quickly

Answer

The property is offered at a below-market price to attract offers

Answer

Financing terms are set by the lender regardless of market norms