ARA Report Writing & Ethical Standards

Question 1

What is the primary purpose of an appraisal report?

Accepted Answer

To provide an opinion of market value based on data

Answer

To advertise property listings.

Answer

To offer legal advice.

Answer

To sell appraisal software.

Question 2

Why is consistency important in appraisal report writing?

Accepted Answer

It helps maintain credibility and reader comprehension

Answer

It makes the report more colorful.

Answer

It reduces the need for supporting data.

Answer

It speeds up report submission.

Question 3

Which document outlines ethical standards for appraisers?

Accepted Answer

USPAP (Uniform Standards of Professional Appraisal Practice)

Answer

Code of Federal Regulations.

Answer

IRS Publication 946.

Answer

U.S. Constitution.

Question 4

How should conflicts of interest be handled in appraisal reporting?

Accepted Answer

By disclosing them and maintaining objectivity

Answer

By omitting them from the report.

Answer

By exaggerating property value.

Answer

By delegating the task to another appraiser.

Question 5

What should be avoided in an appraisal report?

Accepted Answer

Biased or unsupported conclusions

Answer

Detailed charts.

Answer

Supporting documentation.

Answer

References to data sources.

Question 6

What is the role of confidentiality in ethical appraisal practice?

Accepted Answer

To protect client data unless disclosure is authorized

Answer

To allow broader data sharing.

Answer

To encourage competitive bidding.

Answer

To help advertise services.

Question 7

How should an appraiser handle errors found after a report is submitted?

Accepted Answer

Correct and disclose the error to the client

Answer

Ignore the error.

Answer

Wait until the next report to address it.

Answer

Blame the client for the error.

Question 8

What must be included in the scope of work section of a report?

Accepted Answer

The research and analysis performed

Answer

Only the client's goals.

Answer

A description of the property.

Answer

The appraiser's compensation.

Question 9

Why must appraisers avoid advocacy in their reports?

Accepted Answer

It ensures unbiased and credible valuations

Answer

It improves report sales.

Answer

It speeds up the valuation process.

Answer

It simplifies report writing.