CGA Appraisal Report Writing & Communication 1

Question 1

According to current USPAP, what are the two types of written real property appraisal reports?

Accepted Answer

Appraisal Report and Restricted Appraisal Report

Answer

USPAP Standards Rule 2-2 (effective 2014) consolidated reporting options into two types: Appraisal Report and Restricted Appraisal Report.

Question 2

A Restricted Appraisal Report under USPAP is appropriate when:

Accepted Answer

The intended users are limited to the client only

Answer

A Restricted Appraisal Report may only be used when the client is the sole intended user, since it contains less detail than a standard Appraisal Report.

Question 3

Which of the following must be stated in every written appraisal report per USPAP?

Accepted Answer

The type and definition of value and its source

Answer

USPAP requires every appraisal report to identify the type and definition of value being estimated, along with the source of that definition.

Question 4

In an appraisal report, the scope of work disclosure must include:

Accepted Answer

A description of the research and analyses performed

Answer

USPAP's Scope of Work Rule requires disclosure of the research and analyses performed so the reader understands the basis for the appraiser's value conclusion.

Question 5

What is the primary purpose of 'limiting conditions' in an appraisal report?

Accepted Answer

To disclose assumptions made where actual facts were unavailable or unverified

Answer

Limiting conditions clarify assumptions the appraiser relied upon (e.g., no undisclosed environmental issues) that bound the scope and reliability of the value opinion.

(CGA) Certified General Appraiser Practice Test

(CGA) Certified General Appraiser Practice Test

CGA Appraisal Report Writing & Communication 1