CAR Communication & Documentation 5

Question 1

A review appraiser is asked to communicate a preliminary finding to the client before the review report is complete. The best practice is to:

Accepted Answer

Provide a written preliminary opinion with a clear statement that it may change upon full analysis

Answer

If preliminary findings are shared, they should be in writing and clearly noted as subject to change pending completion of the full review.

Question 2

Which of the following statements about the 'intended use' in a review assignment is correct?

Accepted Answer

The intended use must be clearly identified in the review report and drives the scope of work

Answer

The intended use must be clearly stated in the review report and is a primary driver of the appropriate scope of work for the review assignment.

Question 3

When a review appraiser encounters an appraisal that omits required USPAP certifications, this finding should be:

Accepted Answer

Documented as a deficiency in the review report

Answer

Missing required certifications represent a reportable deficiency that must be documented in the review report as a deviation from USPAP standards.

Question 4

For a review of a proposed construction appraisal, the reviewer's documentation should specifically address whether the original appraiser:

Accepted Answer

Used an as-completed effective date and based value on plans and specifications

Answer

Reviews of proposed construction appraisals must confirm that the value is based on a hypothetical as-completed condition using approved plans and specifications as of a prospective effective date.

Question 5

How should a review appraiser handle a situation where the original appraisal report contains inconsistent data between the grid and the text sections?

Accepted Answer

Document the inconsistency and assess its impact on the reliability of the value conclusion

Answer

Internal inconsistencies must be documented as deficiencies and the reviewer must assess whether they materially affect the credibility of the value conclusion.

(CAR) Certified Appraisal Reviewer Practice Test

(CAR) Certified Appraisal Reviewer Practice Test

CAR Communication & Documentation 5