SAEE SAEE - Valuation Reporting Requirements Questions and Answers 4

Question 1

When preparing a summary appraisal report (now called an Appraisal Report under current USPAP), the appraiser is required to:

Accepted Answer

Summarize or state the required elements in the report

Answer

Include a complete detailed explanation of every step in the valuation process

Answer

Only reference supporting data from the workfile

Answer

Exclude any assumptions or limiting conditions

Question 2

Which of the following must be included in a real property appraisal report according to USPAP Standards Rule 2-2?

Accepted Answer

The identity of the client and any other intended users

Answer

A listing of all properties ever appraised by the appraiser

Answer

The appraiser's personal financial statements

Answer

Photographs of every comparable sale property

Question 3

In a valuation report, the statement of the effective date of the appraisal is important because:

Accepted Answer

The opinion of value reflects market conditions as of that specific date

Answer

It determines the appraiser's license renewal requirements

Answer

It sets the deadline for the client to pay the appraiser

Answer

It controls which comparable sales must be included in the report

Question 4

An appraiser completes a real property appraisal and adds a co-signer who did not inspect the property. The report must:

Accepted Answer

Identify the co-signer's role and note the inspection limitation in the certification

Answer

State that the co-signer is responsible for the entire report

Answer

Prohibit the co-signer from certifying the report entirely

Answer

Convert to a Restricted Appraisal Report due to the limitation

Question 5

Which of the following correctly describes a 'general assumption' in a valuation report?

Accepted Answer

A routine assumption common to appraisal practice that may not require explicit disclosure

Answer

A condition known to be false that the appraiser treats as true

Answer

An unverifiable condition specific to the subject property

Answer

An assumption imposed by the client that limits the analysis

Question 6

USPAP requires that appraisal reports state the real property interest appraised. This is important because:

Accepted Answer

Different interests (fee simple, leasehold, etc.) can result in different values

Answer

Lenders require a specific interest type for all mortgage appraisals

Answer

The interest determines which cost approach method to use

Answer

Only fee simple interests require disclosure of the interest appraised

Question 7

When a valuation report for a federally related transaction omits the sales comparison approach, the report must:

Accepted Answer

Explain why the approach was excluded

Answer

Automatically be rejected by the lender

Answer

Include an additional cost approach to compensate

Answer

Be co-signed by a second state-certified appraiser