SAEE Valuation Reporting Requirements 3

Question 1

The scope of work in a report should reflect:

Accepted Answer

The type and extent of research and analysis performed

Answer

Scope of work describes the research and analysis actually performed to develop credible results.

Question 2

If a value opinion relies on an extraordinary assumption, the report must:

Accepted Answer

Clearly disclose the assumption

Answer

Extraordinary assumptions must be disclosed because, if false, they could alter the conclusions.

Question 3

A hypothetical condition differs from an extraordinary assumption because it:

Accepted Answer

Is known to be contrary to fact as of the effective date

Answer

A hypothetical condition is presumed contrary to known facts but used for analysis purposes.

Question 4

Reporting requirements generally demand that the report be:

Accepted Answer

Not misleading and contain sufficient information

Answer

Reports must be clear, not misleading, and contain enough information for intended users to understand them.

Question 5

The identification of the property rights appraised should appear:

Accepted Answer

In the report

Answer

The interest or rights being valued (e.g., fee simple, leased fee) must be stated in the report.

SAEE Test Practice Test