Documentation & Appraisal Report Writing Flashcards
6 cards from real CVA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Documentation & Appraisal Report Writing flashcards as text
When a CVA appraiser uses the term 'as-is value' in a report, what does it mean?
Answer: The vehicle's market value in its current condition, without any adjustments for deferred repairs or reconditioning
As-is value reflects the vehicle's current market worth in its existing condition, including all defects, without assuming any future repairs or improvements.
What is the function of an 'addenda' section in a vehicle appraisal report?
Answer: To attach supporting documents such as vehicle history reports, photos, comparable sales data, and market research
The addenda contains supporting exhibits—photos, CARFAX reports, auction data, comparables—that substantiate the conclusions stated in the body of the report.
Which appraiser behavior constitutes a USPAP ethics violation?
Answer: Accepting a contingency fee tied to achieving a minimum appraised value
Contingency fees tied to a specific value outcome are prohibited under USPAP because they create financial incentives that compromise appraiser independence.
Why must a CVA disclose prior appraisals of the same vehicle in a subsequent appraisal report?
Answer: To maintain transparency and allow the reader to identify any potential bias or changing methodology from prior work
USPAP requires disclosure of prior assignments on the same or substantially similar property to maintain transparency and protect against undisclosed conflicts of interest.
What is the difference between an 'appraisal report' and a 'restricted appraisal report' under USPAP?
Answer: A restricted appraisal report contains less detail and is intended for the client's use only, while an appraisal report is designed for any intended user
A restricted appraisal report limits distribution to the client only and contains less supporting detail, while a standard appraisal report can be shared with any intended user.
Which statement correctly defines 'market value' as used in a CVA appraisal report?
Answer: The most probable price a property would bring in a competitive and open market under all conditions requisite to a fair sale
Market value is the most probable price in a competitive, open market transaction between a knowledgeable, willing buyer and seller, neither under compulsion.