CAR Communication & Documentation 2

Question 1

When a review appraiser identifies a significant error in a completed appraisal report, what is the most appropriate initial action?

Accepted Answer

Document the error and communicate findings to the client per engagement terms

Answer

The review appraiser should document identified errors and communicate findings to the client according to the terms of the review engagement.

Question 2

Which of the following best describes the purpose of the 'scope of work' section in an appraisal review report?

Accepted Answer

To identify what the reviewer did and did not do during the review process

Answer

The scope of work section describes the extent of the review process, including what research and analyses were and were not performed.

Question 3

Under USPAP, a review appraiser who develops their own value opinion in a desk review must:

Accepted Answer

Comply with the relevant USPAP Standards for appraisal development and reporting

Answer

When a reviewer develops their own value opinion, they must comply with applicable USPAP appraisal development and reporting standards.

Question 4

A field review differs from a desk review primarily in that it:

Accepted Answer

Includes an exterior or interior inspection of the subject property

Answer

A field review includes an on-site inspection (exterior and/or interior) of the subject property, unlike a desk review which is conducted without physical inspection.

Question 5

When documenting comparable sales analysis in a review, the reviewer should:

Accepted Answer

Note whether the selected comparables are reasonable given market conditions

Answer

The reviewer should assess and document whether the original appraiser's comparable selection is reasonable and supported by market evidence.

(CAR) Certified Appraisal Reviewer Practice Test

(CAR) Certified Appraisal Reviewer Practice Test

CAR Communication & Documentation 2