Reporting Standards & Documentation Practices Flashcards

Which USPAP Standards Rule governs the written appraisal report for real property?

Answer: Standards Rule 2-2

Standards Rule 2-2 specifies the content requirements for each type of written real property appraisal report.

An appraisal report that states 'The value conclusion is subject to the completion of repairs per the plans and specifications provided' is using which type of condition?

Answer: Hypothetical condition

Appraising 'as completed' per plans treats a future state as if it existed at the effective date, which is a hypothetical condition.

The intended use of an appraisal must be stated in the report because it:

Answer: Defines the problem the appraisal is designed to solve

The intended use frames the appraisal problem and determines what type of analysis and report content is appropriate.

In residential appraisal practice, the Uniform Appraisal Dataset (UAD) standardizes:

Answer: Field entries and condition/quality ratings on GSE forms

The UAD establishes standardized definitions and formats for specific fields on Fannie Mae and Freddie Mac appraisal forms.

When comparables are located outside the subject's immediate neighborhood, the appraiser must:

Answer: Explain why proximate comparables were insufficient

Using distant comparables requires the appraiser to explain why adequate sales within the neighborhood were unavailable.

Which document type would contain the raw data, calculations, and supporting information behind a completed appraisal report?

Answer: Workfile

The workfile contains all data, information, and documentation necessary to support the appraiser's opinions and conclusions.

USPAP requires the appraiser to disclose prior services on the subject property performed within the past three years because:

Answer: It helps users evaluate potential bias or conflicts

Prior service disclosure allows intended users to assess whether past involvement could affect the appraiser's objectivity.