Deck #1 Flashcards
Scope of Work
the type and extent of research and analysis in an assignment
Can an appraiser’s scope of work change after you disclose it?
Yes, determining the scope of work is an ongoing process during the assignment
Which valuation services does the scope of work rule apply to?
only to appraisal and appraisal review services
What must an appraiser do prior to determining the scope of work for the assignment?
identify the problem
The “purpose” of the assignment is an element of problem identification that was replaced with what phrase that is in current use today?
type and definition of value
Two rules for “acceptability for an assignment”
- the expectations of parties who are regularly intended users for similar assignments, 2. what an appraiser’s peers’ actions would be in performing the same assignment
When is the appraiser’s scope of work acceptable?
When it leads to credible assignment results for the intended user
The requirement to disclose the scope of work in an appraisal report applies to ____
appraisal and appraisal review assignments
The scope of work in an assignment must actually be the scope of work_____
noted in the report
jurisdictional exception
an assignment condition established by applicable law or regulation, which precludes an appraiser from complying with a part of USPAP
What assignment element in the appraisal process is a jurisdictional exception identified under?
assignment conditions
The jurisdictional exception rule provides a severability (or saving) clause. What does that mean?
It preserves the balance of USPAP if one or more of its parts are determined to preclude compliance to a pertinent law or regulation of a jurisdiction
What is standard 1
identify the problem, determine the scope of work and complete the research and analysis
Substantial errors
errors that affect the appraisal through omission or commission
Series of errors
they might not individually effect the results, but together can affect the credibility of the assignment
Appraisers can use STANDARD 1 as a checklist because it follows the requirements in the _____
appraisal development process
T/F: Standard 1 is paired with standard 2
TRUE
An appraiser’s assignment results must be credible, which means the results ______
are worth of belief
What two terms in the Comment to the definition of “credible” help clarify the components of “support”
evidence and logic
Exposure time
the length of time a property would have been offered on the market
The response to “what is reasonable exposure time” should instigate what other question?
For what kind of property at what value range?
An appraiser analizes a sale with favorable financing. What does he need to address if the appraisal is for market value?
He should identify the favorable financing terms and develop an opinion of their effect on value.
What is the effective date of an appraisal?
The date of the value opinion.
When can an appraiser complete an appraisal based on an extraordinary assumption?
When required to get credible opinions and conclusions
The last procedure in the development of an appraisal requires an appraiser to_____
reconcile the data and the relevancy of the approaches used to arrive at the value conclusion
The “normal course of business” is controlled by the ____
scope of work
An appraiser must analyze all previous sales within what time period?
3 years
If asked to appraise a property on which there is a current agreement of sale, the agreement must be analyzed as______
part of the appraisal development
When a valuation assignment includes an opinion of market value, what must the appraisal development include when it is necessary for credible assignment results?
identify and analyze the effect on land use and develop an opinion of the highest and best use
when developing a real property appraisal, an appraiser _______
What are the two options for a written report?
Appraisal Report, Restricted Appraisal Report
What two aspects of the appraisal process are distinctly different, yet are considered inseparable partners from the perspective of STANDARD 2?
appraisal development and appraisal reporting
“State” meaning in a report:
indicate clear, yet minimal presentation of information
“Summarize” meaning in a report:
indicate a condensed presentation of info that addresses the substantive matters related to the topic under discussion
An appraiser labels his reports as “Comprehensive Analysis Report.” Does USPAP allow this?
Yes, as long as he discloses the report option used that complies with Standards Rule 2-2.
When reporting results, what dates must be included?
effective date and report date
What key term is associated with the content and level of information provided in an Appraisal Report?
summarize
When appropriate for the intended use of the appraisal, an appraiser may use a Restricted Appraisal Report provided____
the identity of the other intended users are stated by name rather than by type
Two appraisers signed the certification to an appraisal they both worked on. What must the certification disclose regarding the two appraisers?
clearly specify which individuals did or did not make a personal inspection of the appraised property
According to USPAP, what is an appraiser required to do when they sign any part of an appraisal report?
sign the certification
What must be included in the written report of an appraisal or appraisal review?
a signed certification
In your workfile, a true copy of the appraisal report delivered to the client must include what specific report component of STANDARD 2?
a signed certification
What is the USPAP requirement for signing an appraisal report?
each written report must include a signed certification
What is unique about the signed certification of an oral report?
it must be dated
When can an oral report be used?
when it is all the client needs and would be meaningful and not misleading
T/F: An oral report doesn’t need a workfile to be in existence prior to and contemporaneous with the communication of the oral report.
False, it needs to be in existence prior
