USPAP Ch 8 Quiz Flashcards
(30 cards)
The use of standard appraisal reporting forms
Is not required by STANDARD 2
STANDARD 2 sets forth requirements for
Appraisal report content
What is the essential difference between the two reporting options?
The content and level of information
The two written report options stated in Standards Rule 2-2 are
Appraisal Report and Restricted Appraisal Report
Which of the following is NOT required by USPAP to be in an Appraisal Report?
Client’s specific name. f the client wishes to remain anonymous, the appraiser may omit the client’s name(s) from the report, but must document the client’s name(s) in his or her workfile.
When reporting the results of an appraisal, dates that must be included are
Effective date and report date
An appraiser’s client requests anonymity and asks that their identity not appear in the Appraisal Report that is prepared for the assignment. What must the appraiser do?
Use care not to violate the Confidentiality section of the ETHICS RULE, State in the report that the client’s identity has been withheld at the client’s request, Document the identity of the client in the workfile.
In an Appraisal Report, the scope of work used to develop the appraisal must be
summarized
An appraiser determines that the cost approach is not necessary in an appraisal assignment, and therefore does not develop the approach. In the Restricted Appraisal Report for the assignment, what must the appraiser do?
State the reason for the exclusion of the approach
An appraiser is preparing a Restricted Appraisal Report in a situation where there are intended users in addition to the client. Which statement is true regarding this situation?
These additional intended users must be identified in the report by name.
All written appraisal reports must contain
a signed certification
When an extraordinary assumption is used in an appraisal, the report must state the extraordinary assumption and
state that its use may have affected the assignment results
What is the purpose of including a signed certification in an appraisal report?
For the appraiser to acknowledge his or her ethical obligations
Which of the following best describes bias in appraisal practice?
It is not permitted
According to USPAP, any appraiser who signs any part of an appraisal report is required to
sign a certification
To the extent possible and appropriate, oral appraisal reports for real property must address the substantive matters that apply to a(n)
Appraisal Report
An appraiser provides an oral report of a real property appraisal. Which statement is CORRECT?
The appraiser must add a signed and dated certification to her appraisal workfile.
After an assignment has been completed and the report has been delivered, an appraiser may be asked to “readdress” (transfer) the report to another party. Does USPAP allow an appraiser to “readdress” (transfer) a report by altering it to indicate a new recipient as the client or additional intended user when the original report was completed for another party?
No. Once a report has been prepared for a named client(s) and any other identified intended users and for an identified intended use, the appraiser cannot “readdress” (transfer) the report to another party.
An appraiser was engaged by Client A to appraise a property. The appraiser delivered the appraisal report to Client A. The client has decided not to pursue the transaction that generated the need for the appraisal report. The appraiser is contacted by Client B. Client B requests that the original report be readdressed (transferred) by replacing Client A’s name with Client B’s name in the report. Is this acceptable?
No. Simply changing the client name on the report cannot change or replace the original appraiser-client relationship that was established with Client A. Therefore, this action is misleading.
An appraiser was engaged by Client A to appraise a property. The appraiser delivered the appraisal report to Client A. The client has decided not to pursue the transaction that generated the need for the appraisal report. The appraiser is contacted by Client B. Client B requests that the original report be readdressed (transferred) by replacing Client A’s name with Client B’s name in the report. How can this circumstance be handled according to Standards?
The appraiser can consider Client B’s request as a new assignment. In so doing, the appraiser may establish a new appraiser-client relationship with Client B and appraise the property for this new client.
Why might Client B want their name on the report that was completed for Client A?
Client B may want to establish an appraiser-client relationship because it provides all the rights, obligations and liabilities such a relationship places on the appraiser.
Under what circumstances can an appraiser agree to perform an assignment to appraise a property for a prospective client when that appraiser has previously completed an appraisal of the same property for another client?
Agreeing to perform the assignment from the subsequent prospective client is not prohibited by USPAP, assuming appropriate disclosure is made to the client before being engaged and any existing confidential information is handled properly.
An appraiser completes an appraisal for Bank A. Two months later, he is contacted by Bank B, who asks him to “readdress” his prior report to them. Which statement is TRUE about the appraiser’s USPAP obligations?
He is not permitted to “readdress” the report to Bank B.
If a client requests a more current valuation on a property that was the subject of a prior assignment, this is a(n) ____________.
new assignment
