12 Ch5 The Reporting Process quiz Flashcards
An appraiser may omit the client’s identity from the appraisal report, at the client’s request, as long as the appraiser documents the identity of the client in the workfile.
TRUE
In most residential assignments, your client will probably require which of the report options?
Appraisal Report
Which statement is TRUE regarding an appraiser using common appraisal report forms that have the definition of value pre-printed as part of the form?
The form serves to provide a definition of value, and cite the source for the definition
What two dates must be in every written real property appraisal report, as required by Standards Rule 2-2?
Effective date and date of report
What type of appraisal report is typically requested by clients in mortgage lending situations?
Appraisal Report
The USPAP reporting requirements set forth in Standards Rule 2-2 are
Minimum requirements
The USPAP reporting requirements are
Minimum requirements and may be exceeded when necessary.
Before accepting an assignment, an appraiser is required to disclose to the client any prior services that the appraiser provided regarding the subject property
Within the past 3 years
If a client-requested appraisal report form does not contain sufficient information for the report to be properly understood, what should an appraiser do?
Supplement the form with the required information
What must the appraiser do if his/her appraisal client wishes to remain anonymous?
Omit the client’s identity from the report, but document the client’s identity in the workfile
Appraiser Erin accepts an appraisal assignment from a mysterious client, who instructs her not to disclose his identity. What must Erin do under USPAP regarding this unusual request?
Omit the client’s identity from the report, but document the client’s identity in the workfile
Sarah is completing an appraisal, and is reporting it on the URAR appraisal report form. What does she have to do in her report concerning her highest and best use analysis?
Summarize it.
If the appraisal of a complex property makes performance of one or more of the valuation approaches impossible or unnecessary, the appraiser
Must explain why he or she did not complete the approach(es)
Which is one of the written report options under USPAP?
Appraisal Report
When an appraiser receives an assignment to appraise a complex property, it is safe to assume that the client is aware of the property’s complexity.
FALSE
Before accepting an assignment, an appraiser is required to disclose to the client any prior services that the appraiser provided regarding the subject property
Within the past 3 years
When reporting the appraisal of a complex property, the report must contain sufficient information to enable proper understanding on the part of
The intended users
Appraisal involves two processes. The first is appraisal development. What is the second?
Reporting
Robert is appraising a single-family home for liquidation value, and he is writing an Appraisal Report in a narrative format. Which statement is TRUE regarding the reporting requirements for this assignment?
The report must state the type and definition of value, and cite the source for the definition
When reporting the appraisal of a complex property, the appraiser must state all extraordinary assumptions clearly and conspicuously, and state that their use might
Have affected the assignment results
What type of written appraisal report allows the appraiser to start with a “blank canvas” and then create the report as he or she sees fit?
Narrative report
Why do many residential appraisers fear writing narrative reports?
They are unfamiliar with the report style because they rarely use it
The URAR form is intended for use in reporting
Market value
The Appraisal Institute’s “Appraisal Report - Residential” is designed for various intended uses, and does not need to be supplemented with additional data and analysis.
FALSE
If a residential appraiser decides to write a narrative report, where is a good source of help and information regarding formatting the report?
His/her residential forms software program
Appraiser Bart wants to use the URAR form to report an appraisal on a property for a divorce situation. What should he do?
Not use the form for this purpose
It is inappropriate for an appraiser to use the URAR form to report the results of an appraisal prepared for estate tax purposes.
TRUE
The intended user of a URAR appraisal report is
The lender/client
What is another name for the Fannie Mae URAR form?
1004 form
Which of these sections would probably be part of the Introduction section of a narrative appraisal report?
Certification, Letter of transmittal, Table of contents
An appraiser may omit the client’s _______________, at the client’s request, as long as the appraiser documents the identity of the client in the workfile.
name
Commercial appraisers typically use what type of report?
Narrative Report
What type of written appraisal report allows the appraiser to start with a “blank canvas” and then create the report as he or she sees fit?
Narrative report
When reporting value, USPAP requires you to report
The type, definition and source of the definition
SR 2-1 reporting requirements are important in all real property appraisal reports, but are especially critical in the appraisal of what type of property?
Complex
An alternative to the Fannie Mae/Freddie Mac forms is the form recently created by the Appraisal Institute, called:
Appraisal Report - Residential. An alternative to the Fannie Mae/Freddie Mac forms is the form recently created by the Appraisal Institute. It is copyrighted as form AI-100.04 and is called “Appraisal Report - Residential”. It was created in 2005 to fill the gap created by Fannie Mae and Freddie Mac restricting the use of their forms to lending purposes. (Ch. 5, Residential Reports)
