Scope of Work and Reporting Requirements Flashcards

What is the key difference between an 'assumption' and an 'extraordinary assumption' in USPAP?

Answer: An ordinary assumption is reasonable and supportable; an extraordinary assumption treats an uncertain condition as certain

An ordinary assumption is reasonable and supported by evidence, while an extraordinary assumption treats an uncertain or unverified condition as if it were true.

Under USPAP, an appraisal report must state the type and definition of value and its source. Why is citing the source important?

Answer: To ensure the reader knows the exact meaning of the value opinion as applied

Citing the source of the value definition ensures the intended users know precisely what the value opinion means and how it was developed.

Which of the following is a required element of a USPAP-compliant appraisal report under STANDARD 2?

Answer: The real property interest appraised

STANDARD 2 requires the report to identify the real property rights being appraised, as this directly affects the value opinion.

Can an appraisal report be updated or modified after it is delivered to the client?

Answer: Yes, the appraiser may issue an updated report with the same or a new effective date, following applicable USPAP standards

Appraisers may issue updated or corrected reports following USPAP standards, which may retain or change the effective date depending on the nature of the update.

Under USPAP, if a property inspection is not performed, the appraiser must:

Answer: Disclose this in the report and describe how the lack of inspection affects the assignment

When a property inspection is not performed, USPAP requires disclosure and an explanation of how this affects the scope and reliability of the appraisal.

In a USPAP-compliant report, the 'date of the report' refers to:

Answer: The date the appraiser signs and certifies the report

The date of the report is the date the appraiser signs the certification, which may differ from the effective date or date of inspection.