Chapter 9 Standard 3 Flashcards
STANDARD 3 states an appraiser acting as a reviewer must:
Identify the problem to be solved, determine the scope of work necessary to solve the problem, and correctly complete research and analysis necessary to produce a credible appraisal review.
Appraisal review is defined in USPAP as:
the act or process of developing an opinion about the quality of another appraiser’s work (i.e., a report, part of a report, a workfile, or some combination of these) that was performed as part of an appraisal or appraisal review assignment; (adjective) of or pertaining to an opinion about the quality of another appraiser’s work that was performed as part of an appraisal or appraisal review assignment.
True or false: STANDARD 3 applies to all three property types (real, personal, business/intangible)
True
The subject of an appraisal review assignment may be
any work that is completed by a state licensed or certified appraiser
another appraiser’s work that is completed as part of an appraisal or appraisal review assignment
any written work that is part of appraisal practice
a property that had been previously valued by another appraiser
Another appraiser’s work that is completed as part of an appraisal or appraisal review assignment
In STANDARD 3, the word “reviewer” means:
all of these
a mortgage underwriter checking a report for errors
an automated program that checks mathematical calculations in appraisal reports
an appraiser who is performing an appraisal review
An appraiser who is performing an appraisal review
A reviewer is performing an appraisal review on an appraisal report prepared on a residential property. The reviewer is required by USPAP to:
Develop an opinion of value of the property that is the subject of the work under review
Inform the state appraisal enforcement agency if there are any deficiencies found in the work under review
Contact the appraiser who completed the work under review
Identify whether it is necessary to develop his or her own value opinion as part of the appraisal review assignment
Identify whether it is necessary to develop his or her own value opinion as part of the appraisal review assignment
When developing an appraisal review, USPAP requires a reviewer to identify the appraiser who completed the work under review:
unless the identity has been withheld by the client
and personally contact that appraiser if the reviewer has any questions
without exception
and work with the appraiser to correct any errors
unless the identity has been withheld by the client
In performing an appraisal review, a reviewer may use information that was not available to the original appraiser in the normal course of business, as long as the information:
discredits the original appraiser’s value opinion
supports the original appraiser’s value opinion
is not used in the development of the reviewer’s opinion of the quality of the work under review
is not used in the development of the reviewer’s opinion of the quality of the work under review
When performing an appraisal review, a reviewer finds information that was available to the original appraiser, but the original appraiser did not consider it when developing the appraisal under review. Does USPAP permit the reviewer to use this information in developing an opinion of the quality of the work under review?
Yes
No
USPAP does not address this issue
Yes
Is a reviewer permitted to file a complaint with a state appraisal regulatory agency without the client’s consent?
USPAP does not specify
Yes
No
Yes
Which statement is TRUE regarding USPAP and the appraisal review process for real property?
In an appraisal review assignment, the subject of the review is the appraiser who completed the work.
If the reviewer develops his or her own opinion of value, it must be developed under the requirements of STANDARD 1.
A reviewer is required to develop his or her own opinion of value if the reviewer feels the original value is not credible.
In reviewing an appraisal, the reviewer is prohibited from developing or expressing an opinion of value.
If the reviewer develops his or her own opinion of value, it must be developed under the requirements of STANDARD 1
An appraisal review can be a two-stage assignment, which includes both an appraisal review and a value opinion by the reviewer.
False
True
True
