USPAP Scope of Work and Reporting Requirements 2 — Questions and Answers
Question 1: Under USPAP, an 'intended user' is best defined as:
- Anyone who reads the appraisal report
- The client and any other party the appraiser identifies as relying on the results (Correct answer)
- The property owner
- The regulatory body overseeing the appraisal
Correct answer: The client and any other party the appraiser identifies as relying on the results
Intended users are the client plus any other parties identified by the appraiser as users of the results in the appraisal process.
Question 2: If the scope of work changes materially after an appraisal assignment begins, USPAP requires the appraiser to:
- Abandon the assignment
- Discard all prior work and start over
- Reassess whether the changed scope still produces a credible result and update accordingly (Correct answer)
- Submit the original report with a correction addendum only
Correct answer: Reassess whether the changed scope still produces a credible result and update accordingly
A material change in scope requires the appraiser to evaluate whether the revised scope still meets the credibility standard and adjust the analysis as needed.
Question 3: In a USPAP appraisal report, the effective date of the appraisal is:
- The date the report is signed
- The date to which the value opinion applies (Correct answer)
- The date the property was last inspected
- The date the client receives the report
Correct answer: The date to which the value opinion applies
The effective date is the point in time to which the appraiser's value opinion applies, which may differ from the report date.
Question 4: When is a retrospective appraisal commonly used in real property appraisal?
- To value proposed construction
- To establish value at a past date, such as for estate or litigation purposes (Correct answer)
- To project future value for investment decisions
- To update a prior appraisal to current market conditions
Correct answer: To establish value at a past date, such as for estate or litigation purposes
Retrospective appraisals establish value as of a past date, commonly needed for estate settlement, tax appeals, or litigation.
Question 5: Under USPAP, what must an appraiser do if the scope of work agreed upon by the client is insufficient to produce a credible result?
- Complete the assignment as specified by the client
- Disclose the limitation in the report and proceed
- Decline the assignment or expand the scope to ensure credibility (Correct answer)
- Submit the report with a disclaimer only
Correct answer: Decline the assignment or expand the scope to ensure credibility
If the agreed-upon scope is insufficient for a credible result, the appraiser must either expand the scope or decline the assignment.
Question 6: Which statement about the certification required in a USPAP-compliant real property report is TRUE?
- The certification is optional for restricted appraisal reports
- The certification must state that analyses and conclusions are limited to the appraiser's professional judgment
- The certification must be signed by all appraisers who contribute to the report
- All appraisers who contribute significantly must sign the certification (Correct answer)
Correct answer: All appraisers who contribute significantly must sign the certification
Under STANDARD 2, each appraiser who contributes significant professional assistance must sign the certification or be identified within it.
USPAP Scope of Work and Reporting Requirements 2
Under USPAP, an 'intended user' is best defined as: