Report Writing & Ethical Standards Flashcards

A 'hypothetical condition' in an appraisal differs from an extraordinary assumption in that it:

Answer: Assumes something known to be false as if it were true for the purpose of analysis

A hypothetical condition is used when the appraiser assumes something that is contrary to fact, such as analyzing a vacant lot as if it were improved.

When reporting the results of a real property appraisal, the appraiser must:

Answer: Clearly and accurately disclose all assumptions, extraordinary assumptions, hypothetical conditions, and limiting conditions

USPAP Standard 2 requires clear and accurate disclosure of all assumptions, extraordinary assumptions, hypothetical conditions, and limiting conditions that affect the assignment results.

Which statement about oral appraisal reports is accurate under USPAP?

Answer: Oral reports must be substantiated by work file documentation sufficient to support the conclusions

USPAP permits oral reports but requires the appraiser to maintain a work file that supports the opinions and conclusions communicated orally.

The USPAP Record Keeping Rule requires appraisers to retain work files for a minimum of:

Answer: Five years after preparation or two years after final disposition of any judicial proceeding, whichever is later

USPAP requires work files to be retained for at least five years after preparation or two years after final judicial disposition, whichever is later.

An appraiser signs a report as a 'supervisory appraiser.' This means the supervisory appraiser:

Answer: Accepts responsibility for the report and the work of the trainee appraiser

A supervisory appraiser's signature indicates acceptance of full responsibility for the appraisal report and the trainee's work used in it.

Which of the following best describes 'intended use' in an appraisal assignment?

Answer: The purpose for which the client or other intended users will use the appraisal

Intended use describes the specific purpose for which the client or other identified users will employ the appraisal, such as mortgage lending or estate settlement.

An appraiser who issues a report with a predetermined value conclusion is violating which section of the Ethics Rule?

Answer: Conduct

The Conduct section of the Ethics Rule prohibits appraisers from performing assignments with a predetermined, biased outcome.