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Residential Report Writing and Case Studies > Chapter 3 Appraisal Report > Flashcards

Chapter 3 Appraisal Report Flashcards

1
Q

The more commonly use report option

A

Appraisal Report

Left Column of the table AO-11

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2
Q

The Restricted Appraisal Report typically provides so little information and detail, that it is not

A

sufficient for our clients in most situations

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3
Q

Remember that Standards Rule 2-2 states that the report must

A

prominently state which reporting option is used.

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4
Q

USPAP also states that, to the extent that it is possible and appropriate, an oral appraisal report must meet the content requirements of an

A

Appraisal report

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5
Q 
An appraiser's lender-client asks the appraiser to use the Fannie Mae URAR form to report his appraisal. This client is essentially asking for a:
Violation of USPAP
Appraisal Report
Restricted Appraisal Report
FHA Appraisal Report
A

Appraisal Report`

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6
Q

Zoe is asked to provide an oral appraisal report. What is the USPAP requirement for oral reports?
Oral appraisal reports require use of the DEPARTURE RULE.
Oral appraisal reports are prohibited under USPAP.
To the extent possible and appropriate, oral appraisal reports must meet the requirements for an Appraisal Report.
To the extent possible and appropriate, oral appraisal reports must meet the requirements for a Restricted Report.

A

to the extent possible and appropriate, oral appraisal reports must meet the requirements for an appraisal report

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7
Q

What is the USPAP requirement for disclosing the report option used in a written report?
The client knows what report option is used, so disclosure is not necessary
Prominently state which option is used
This statement must appear in the certification
Use all capital letters

A

prominently state which option is used

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8
Q

Standards Rule 2-2 (a) states:

A

(a) The content of an Appraisal Report must be appropriate for the intended use of the appraisal and, at a minimum:
(i) state the identity of the client; or if the client requested anonymity, state that the identity is withheld at the client’s request but is retained in the appraiser’s workfile;

Comment: Because the client is an intended user, they must be identified in the report as such. However, if the client has requested anonymity the appraiser must use care when identifying the client to avoid violations of the Confidentiality section of the ETHICS RULE.

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9
Q

if you omit the client’s identity from the appraisal report, you must identify your client in your

A

workfile

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10
Q

USPAP states that intended users are identified by the

A

appraiser

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11
Q

The party who engages the appraiser in the assignment is always the client.
True
False

A

False

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12
Q

An appraiser is engaged by an appraisal management company (AMC) who is acting as an agent of the lender. The AMC requests that the appraiser put the lender’s name on the appraisal report as the client. Which statement is TRUE about this situation?
The AMC is the client.
The lender and AMC are joint clients.
The lender is the client.
The appraiser should proceed as if there were no client for this assignment.

A

the lender is the client

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13
Q

An appraiser may be engaged to perform an appraisal by an agent of the client.
True
False

A

true

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14
Q

The Financial Institutions Reform, Recovery, and Enforcement Act of 1989 is sometimes referred to as

A

“FIRREA” or the “Savings and Loan Bailout Bill.”

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15
Q

he most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:

buyer and seller are typically motivated;
both parties are well informed or well advised and acting in what they consider their own best interests;
a reasonable time is allowed for exposure in the open market;
payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and
the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.

A

Market Value

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16
Q

an opinion, based on supporting market data, of the length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal

A

Exposure time

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17
Q

Exposure time is an _______developed by an _______, and it is required by USPAP when exposure time is a component of the definition of value being used.

A

opinion, appraiser

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18
Q

Exposure time is different than marketing time. How?

A

Marketing time looks out into the FUTURE; it answers the question “If this property were put on the market today, how long would it take to sell it?”
Unlike exposure time, an opinion of marketing time is not required by USPAP, although some clients may request it in certain assignments.

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19
Q

Exposure time is the same as marketing time.
True
False

A

False

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20
Q

Jorge is preparing an Appraisal Report for use in a divorce proceeding. What are his USPAP reporting requirements regarding his definition of value?
He must state the definition and cite its source.
He must refer to the location of the definition in a law or regulation.
He may omit the definition from the report if the client permits.
He must use the FIRREA definition of market value.

A

He must state the definition and site its source

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21
Q

An appraiser may base a value opinion on special, non-market financing terms.
True
False

A

True

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22
Q

Two dates must be stated in the report

A

the effective sate of the appraisal and the date of he report

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23
Q

the effective date in the appraisal is the date for which

A

the value opinion is effective

24
Q

The date of the report is the date that we

A

prepare and sign the appraisal report

25
Q

Scope of Work:

A

the type and extent of research and analyses in an appraisal or appraisal review assignment

26
Q

The SCOPE OF WORK RULE expounds on the definition, and states that scope of work includes but is not limited to:

A

the extent to which the property is identified;
the extent to which tangible property is inspected;
the type and extent of data researched; and
the type and extent of analyses applied to arrive at opinions or conclusions.

27
Q

If an individual who provides significant appraisal assistance does not sign the certification,

A

the name of the individual must be stated in the certification and a summary of the assistance he or she provided must appear somewhere in the report.

28
Q

A Restricted Appraisal Report does not require the appraiser to state the effective date of the appraisal.
True
False

A

False

29
Q

An appraiser is preparing a retrospective appraisal. Which statement is TRUE regarding the effective date?
It will be subsequent to the date of report.
It will be prior to the date of report.
It will be the same as the date of report.
It will be the same as the date of property inspection.

A

it will be prior to the date of report

30
Q

An appraiser is required to state two dates in every Appraisal Report.
True
False

A

False

31
Q

I have provided appraisal services regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment.”

A

Disclosure of prior services

32
Q 
In an Appraisal Report, the appraiser's opinion of highest and best use must be \_\_\_\_\_\_\_\_\_\_.
Stated
Described
Omitted
Summarized
A

summarized

33
Q

Rocky completes an appraisal on a small commercial building, and he does not develop the cost approach. What are his reporting requirements for an Appraisal Report, regarding the cost approach?
He must explain the omission of the approach.
He must develop this approach in every commercial assignment.
He is not required to explain the omission of the approach if the client had asked him to omit it.
He should state in the report that he developed the cost approach and the results are retained in his workfile.

A

he must explain the omission of the approach

34
Q

An appraiser is required to include a statement in the report certification even if he or she did not provide prior services regarding the subject property within the prior three years.
True
False

A

true

35
Q 
An appraiser is required to state \_\_\_\_\_ dates in every Appraisal Report.
two
one
Three
At least two
A

two

36
Q 
In real-life appraisal practice, which written report option is most commonly used?
Appraisal Report
Narrative Appraisal Report
Complete Appraisal Report
Restricted Appraisal Report
A

appraisal report

37
Q

Eduardo completes an appraisal for a mortgage lender. One month later, a different lender calls and tells Eduardo that she has a copy of the report. She asks him to add her name onto the report as an intended user. What can Eduardo do under USPAP?
He is not permitted to retroactively add intended users.
He may add the new intended user because the new lender asked him to.
He may add the new intended user only if the original client approves.
USPAP does not address this situation.

A

he is not permitted to retroactively add intended users

38
Q

In a Restricted Appraisal Report on a single-family residence, the exclusion of the income approach __________.
Need only be summarized
Must be explained
Need not be explained because it is typical to omit the income approach in the appraisal of a single-family residence
Must be approved by the client prior to the assignment

A

must be explained

39
Q

Which is longer, exposure time or marketing time?
Exposure time is always longer.
They are different concepts and either could be longer.
marketing time is usually longer.
They are the same.

A

they are different concepts and either could be longer

40
Q

If an appraisal report indicates three comparable sales adjusted to indicate $210,000, $222,000 and $230,000, the appraiser is required to explain why _________________________________.
the average was not used
he or she reconciled the value indication at $220,000
more sales were not used
the range exceeded 5%

A

he or she reconciled the value indication at $220,000

41
Q 
In a written Appraisal Report, what is the predominant level of detail required?
Describe
Summarize
State
Expand
A

summarize

42
Q

In appraisals for federally-regulated lending institutions, the source of the market value definition commonly used by appraisers is:
USPAP
U.S. Department of Housing and Urban Development
FIRREA
Individual state appraisal boards

A

FIRREA

43
Q

Barb is reporting an appraisal of a single-family home, using a URAR form. What is the BEST way to ensure that her report meets the requirements for an Appraisal Report?
Meet the minimum content requirements set forth in USPAP
Fill out the form carefully and completely
Insert a disclaimer stating that she is limited by the available space on the form
Insert a competency statement

A

Meet the minimum content requirements set forth in USPAP

44
Q

When an opinion of exposure time is developed, it must also be _______.
Expressed in months
Stated in the certification statement
Reported
Supported with at least six sales of comparable properties

A

REPORTED

45
Q

Which statement is FALSE regarding disclosure of scope of work in an Appraisal Report?
It must appear in a specific section of the report labeled “Scope of Work.”
It must be summarized.
It may include disclosure of both work that was done, and work that was not done.
It may consist of small summaries located in various places throughout the report.

A

It must appear in a specific section of the report labeled scope of work

46
Q

Brenda prepares an Appraisal Report, in which she states, word-for-word, the market value definition she is using. What other USPAP reporting requirements (if any) does she have regarding her definition of value?
She must cite the source of the definition.
There are no other USPAP requirements regarding her value definition.
The definition must appear in boldface, in a separate section of the report.
She must use an extraordinary assumption regarding her value definition.

A

she must cite the source of the definition

47
Q 
An appraiser is preparing an appraisal with an effective date of July 3rd. The report is dated July 5th. This would most likely be a \_\_\_\_\_\_\_\_\_\_\_\_.
Retrospective appraisal
Prospective appraisal
Current appraisal
Extraordinary assumption appraisal
A

current

48
Q 
For an appraisal for a Fannie Mae lender, the effective date of the appraisal is the date \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.
the property was inspected
of the report
the report was received by the lender
the assignment was received
A

the property was inspected

49
Q

Howard appraised a property for a very secretive client, who instructed him not to disclose to anyone that he had appraised the property. Twenty-seven months later, Howard receives an appraisal request from another client. What are Howard’s USPAP obligations?
He must invoke the JURISDICTIONAL EXCEPTION RULE in order to accept the new assignment without disclosure of the prior assignment.
He must decline the assignment.
He must provide a copy of his prior report to the prospective new client.
All of the above

A

he must decline the assignment

50
Q

The party who engages the appraiser in the assignment
is always the client.
may be the client or an agent for the client.
Is always an agent for the client.
must be named in the appraisal report

A

may be the client or an agent for the client

51
Q

The certification statement used in a written real property appraisal report must be used exactly word-for-word as it appears in USPAP Standards Rule 2-3.
True
False

A

false

52
Q 
An appraiser's lender-client asks the appraiser to use the Fannie Mae URAR form to report his appraisal. This client is essentially asking for a:
Violation of USPAP
Summary Appraisal Report
Restricted Appraisal Report
FHA Appraisal Report
A

summary appraisal report

53
Q 
An appraiser is required to state \_\_\_\_\_ dates in every Appraisal Report.
two
one
Three
At least two
A

two

54
Q 
An appraiser is required to include a statement in the report certification even whether or not they provided prior services regarding the subject property within the prior\_\_\_\_\_\_\_\_\_\_\_.
three years
Two years
One year
licensing cycle
A

three years

55
Q 
The certification statement used in a written real property appraisal report must be similar in content to USPAP Standards Rule \_\_\_\_\_.
0-1
2-3
2-0
1-3
A

2-3

56
Q 
Which report option specified in USPAP is the most detailed?
Appraisal Report
Limited Report
Narrative Report
Restricted Appraisal Report
A

appraisal report

Residential Report Writing and Case Studies (10 decks)

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