SAEE - Valuation Reporting Requirements Questions and Answers Flashcards
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Under USPAP, which element is REQUIRED to be included in the certification of a real property appraisal report?
Answer: A statement that the appraiser's compensation is not contingent on a predetermined value
USPAP Standards Rule 2-3 requires the certification to state that compensation is not contingent on a predetermined value or direction in value.
When a valuation report contains an extraordinary assumption, the appraiser must:
Answer: Clearly state the assumption and note it could affect the assignment results
USPAP requires that extraordinary assumptions be clearly stated and that the report indicate they could affect assignment results.
The Scope of Work in a valuation report must describe:
Answer: The extent of research and analyses applied in the assignment
USPAP's Scope of Work Rule requires disclosure of the extent of research (data collected, sources consulted) and analyses applied.
A Restricted Appraisal Report differs from an Appraisal Report primarily in that it:
Answer: Contains less content but may reference the workfile for detail
A Restricted Appraisal Report contains fewer content requirements and relies on the workfile for supporting details, with use restricted to the client only.
Under USPAP, which of the following is an acceptable basis for departing from a SPECIFIC REQUIREMENT of a standard?
Answer: The scope of work makes the requirement unnecessary for credible results
Under USPAP, departures from specific requirements are permitted only when the scope of work makes compliance unnecessary for credible results.
When an appraiser uses an automated valuation model (AVM) output as a tool in developing an opinion of value, the report must:
Answer: Disclose the use of the AVM as part of the scope of work
Use of any tool — including an AVM — must be disclosed as part of the scope of work describing the research and analyses performed.
If an appraiser's opinion of value is subject to a hypothetical condition, the report must:
Answer: State the condition is assumed to be true even though it may be false
A hypothetical condition is something assumed to be true even though it is known to be false, and USPAP requires it to be clearly stated as such in the report.