Communication & Documentation Flashcards
7 cards from real CAR practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Communication & Documentation flashcards as text
A review appraiser discovers the original appraiser failed to analyze a recent foreclosure sale that sold for 20% below the concluded value. This omission is best categorized as:
Answer: A significant error of omission that should be noted in the review
Failing to analyze a potentially relevant comparable sale is a significant error of omission that must be documented in the review report.
The term 'workfile' as used in USPAP review assignments refers to:
Answer: Documentation necessary to support the reviewer's opinions, conclusions, and review report
A workfile contains the documentation necessary to support the reviewer's opinions and conclusions, as well as copies of the review report.
When a review report must be transmitted electronically, the reviewer's certification should:
Answer: Contain a clear electronic signature or be accompanied by a separately signed certification
Electronic review reports must include a valid electronic signature or a separately executed signed certification to satisfy USPAP requirements.
When reviewing a 1004MC Market Conditions Addendum, a reviewer should primarily assess whether:
Answer: Market trend conclusions are consistent with the data presented on the form
The reviewer should verify that the market trend conclusions drawn on the 1004MC are logically supported by the data entered on the form.
A review appraiser's certification in a review report must include:
Answer: A statement that the reviewer has no undisclosed interest in the property
USPAP requires the review appraiser's certification to include a statement disclosing any interest or bias that could affect the review outcome.
When documenting the reconciliation of multiple value indications in a review, the reviewer should:
Answer: Evaluate the relative reliability and applicability of each approach for the property type
Proper reconciliation requires the reviewer to assess and document the relative credibility and relevance of each valuation approach used.
Which type of review report format provides the most detail and is most appropriate for complex, high-value, or litigation-related assignments?
Answer: Appraisal review report
An appraisal review report provides detailed disclosure of data, analysis, and conclusions, making it suitable for complex or litigation-related review assignments.