CGA Appraisal Report Writing & Communication 3

Question 1

The certification required in a USPAP-compliant appraisal report must confirm that:

Accepted Answer

The analyses and conclusions are the appraiser's unbiased, personal professional opinions

Answer

The appraiser holds a financial interest in the subject property

Answer

The appraisal fee is contingent on achieving a specified value outcome

Answer

The report has been pre-approved by the state appraisal board

Question 2

What is a 'desk review' in appraisal practice?

Accepted Answer

A review of an appraisal report conducted without inspecting the subject property or comparables

Answer

An appraisal conducted entirely from office data without a site visit

Answer

A summary appraisal prepared for the appraiser's internal records only

Answer

A restricted-use report intended only for the reviewer's employer

Question 3

Why is a narrative report preferred over a form report for complex commercial appraisals?

Accepted Answer

Narrative reports allow detailed explanation of complex analysis, market conditions, and reasoning

Answer

USPAP mandates narrative format for all properties over $1 million in value

Answer

Form reports are not accepted by commercial mortgage lenders

Answer

Narrative reports can be completed more quickly than standardized forms

Question 4

Which of the following is a typical element found in the 'statement of assumptions and limiting conditions' of an appraisal report?

Accepted Answer

Standard assumptions regarding good and marketable title, accurate surveys, and no undisclosed environmental contamination

Answer

The appraiser's personal investment strategy for the subject market

Answer

A guarantee that the property will sell at the appraised value within 90 days

Answer

An itemized breakdown of all research and inspection fees charged

Question 5

When an appraiser performs a 'field review,' they are required to:

Accepted Answer

Physically inspect at minimum the exterior of the subject property and comparable sales

Answer

Review the appraisal report without any property inspection

Answer

Conduct a full interior inspection of the subject property

Answer

Interview the property owner to verify the reported sale price

Question 6

The 'date of report' differs from the 'effective date' in that:

Accepted Answer

The date of report is when the report was signed/completed; the effective date is the date to which the value opinion applies

Answer

They always refer to the same calendar date

Answer

The date of report is the value determination date; the effective date is the delivery date

Answer

The effective date must always precede the date of the report by at least 30 days

Question 7

Under USPAP's confidentiality rule, an appraiser may NOT disclose confidential information or assignment results without:

Accepted Answer

Prior client authorization or another USPAP-recognized exception

Answer

Approval from the appropriate state appraisal board

Answer

A minimum 30-day waiting period after report delivery

Answer

Written consent from both the buyer and seller of the property