MCKISSOCK USPAP CHAPTER 8 REAL ESTATE EXAM QUESTIONS AND ANSWERS

MCKISSOCK USPAP CHAPTER 8 REAL ESTATE EXAM QUESTIONS AND ANSWERS Sufficient information Requirement - Answer-The appraiser is not required to include sufficient information so that anyone other than intended users can understand the report. Standard Rule 2-2 - Answer-Each written real property appraisal report must be prepared under one of the following options and prominently state which option is used: Appraisal Report or Restricted Appraisal Report. Two real property reporting options defined in USPAP - Answer--Appraisal Report -Restricted Appraisal Report What is the difference between an appraisal report and a restricted appraisal report? - Answer-The level of detail Who is responsible for determining which reporting option to use? - Answer-The appraiser is responsible for the decision regarding which reporting option to use The content of an Appraisal Report must, at a minimum: - Answer-state the identity of the client and any intended users, by name or type When can a restricted report be used? - Answer-A Restricted Appraisal Report is for client use only, and may only be used when the client is the only intended user of the assignment results. In an Appraisal Report, the appraiser must, at a minimum: - Answer-state the intended use of the appraisal. The content of an Appraisal Report must, at a minimum: - Answer--summarize information sufficient to identify the real estate involved in the appraisal, including the physical, legal, and economic property characteristics relevant to the assignment. -state the real property interest appraised. -state the type and definition of value and cite the source of the definition. -state the effective date of the appraisal and the date of the report. -summarize the scope of work used to develop the appraisal. -summarize the information analyzed, the appraisal methods and techniques employed, and the reasoning that supports the analyses, opinions, and conclusions; exclusion of the sales comparison approach, cost approach, or income approach must be explained. -state the use of the real estate existing as of the date of value and the use of the real estate reflected in the appraisal; -when an opinion of highest and best use was developed by the appraiser, summarize the support and rationale for that opinion; The report content of an Appraisal Report must, at a minimum: - Answer-Clearly and conspicuously: state all extraordinary assumptions and hypothetical conditions; and state that their use might have affected the assignment results -Include a signed certification in accordance with Standards Rule 2-3. When is a signed certification required? - Answer-A signed certification is required in all written appraisal reports, regardless of the report option utilized. What is the purpose of a signed certification? - Answer-A signed certification serves as an appraiser's recognition of his or her ethical obligations. Standard Rule 2-4 - Answer-To the extent that it is both possible and appropriate, an oral real property appraisal report must address the substantive matters set forth in Standards Rule 2-2(a). Record Keeping rule (Oral) - Answer-The workfile must include... summaries of any oral reports or testimony, or a transcript of testimony, including the appraiser's signed and dated certification... A workfile must be in existence prior to the issuance of any report. A written summary of an oral report must be added to the workfile within a reasonable time after the issuance of the oral report. Standard 2 States... - Answer-In reporting the results of a real property appraisal, an appraiser must communicate each analysis, opinion, and conclusion in a manner that is not misleading. Report - Answer-Any communication, written or oral, of an appraisal or appraisal review that is transmitted to the client upon completion of an assignment.