Reporting Standards & Documentation Practices Flashcards
7 cards from real IACP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Reporting Standards & Documentation Practices flashcards as text
Under USPAP, which report option provides the least detail while still being compliant for a credible appraisal?
Answer: Restricted Appraisal Report
The Restricted Appraisal Report contains the least detail and is intended for use only by the client.
An appraiser's workfile must be retained for a minimum of how many years after the date of the appraisal report under USPAP?
Answer: 5 years
USPAP requires appraisers to retain workfiles for at least five years after preparation or two years after final disposition of a legal proceeding, whichever is longer.
Which element is REQUIRED to be disclosed in an appraisal report when the subject property was sold within three years prior to the effective date?
Answer: Prior sale price and date
USPAP requires disclosure of prior sales of the subject property within three years of the effective date, including sale price and date.
What is the primary purpose of the limiting conditions section in an appraisal report?
Answer: To identify assumptions that bound the analysis
Limiting conditions identify specific assumptions and restrictions that define the boundaries within which the appraisal conclusion is valid.
When preparing a form report (e.g., FNMA 1004), an appraiser adds extra pages to address complex issues. These additions are known as:
Answer: Addenda
Additional pages appended to a form report to provide expanded analysis or disclosures are called addenda.
An extraordinary assumption differs from a hypothetical condition in that an extraordinary assumption:
Answer: Assumes an uncertain fact as true if it were known
An extraordinary assumption treats an uncertain fact as true for purposes of the analysis, whereas a hypothetical condition assumes something known to be contrary to fact.
Which statement about the effective date of an appraisal is correct?
Answer: It is the date to which the value opinion applies
The effective date is the specific point in time to which the appraiser's value opinion applies, which may differ from the inspection or report date.