Chapter 8 Standards 2 Flashcards
STANDARD 2 addresses
the reporting (written or oral) of a real property appraisal. The Standard states: 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.
STANDARD 2 establishes requirements for
communicating (reporting) real property appraisal assignments.
Definition of Report
Any communication, written or oral, of an appraisal or appraisal review that is transmitted to the client or a party authorized by the client upon completion of an assignment.
Standard 2 consists of how many rules?
6
STANDARD 2 sets forth requirements for
Style and format of a real property appraisal report
The use of standard appraisal forms
Appraisal report content
Appraisal Report Content
The use of standard appraisal reporting forms Is prohibited by USPAP Requires approval by the ASB and AQB Is mandated by STANDARD 2 Is not required by STANDARD 2
Is not required by STANDARD 2
Standards Rule 2-2 is titled Content of a Real Property Appraisal Report. It begins:
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.
Advisory Opinion 38 is titled
Content of an Appraisal Report and Restricted Appraisal Report. It is applicable in real property, personal property, and intangible property appraisals.
What is the essential difference between the two reporting options?
The report form and format prescribed by USPAP
An Appraisal Report is the shorter and more abbreviated option
The content and level of information
A Restricted Appraisal Report does not require the appraiser to maintain a workfile
The content and level of information
The two written report options stated in Standards Rule 2-2 are
Form Report and Narrative Report
Written Appraisal Report and Electronic Appraisal Report
Appraisal Report and Automated Valuation Model
Appraisal Report and Restricted Appraisal Report
Appraisal Report and Restricted Appraisal Report
Standards Rule 2-2 has two subsections:
SR 2-2 (a) establishes minimum content for an Appraisal Report
SR 2-2 (b) establishes minimum content for a Restricted Appraisal Report
Standards Rule 2-2(a)(i)
The content of an Appraisal Report must, at a minimum:
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
The content of an Appraisal Report must, at a minimum:
state the identity of any other intended user(s) by name or type
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?
State in the report that the client’s identity has been withheld at the client’s request
Use care not to violate the Confidentiality section of the ETHICS RULE
All of these actions must be taken
Document the identity of the client in the workfile
All of these actions must be taken
When reporting the results of an appraisal, dates that must be included are Effective date and report date Inspection date and assignment date Inspection date and report date Effective date and inspection date
Effective date and report date