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Terms in this set (93)Standard 2 Addresses the written or oral communication (reporting) of a real property appraisal and 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. Addresses the content and level of information required in a report that communicates the results of a real property appraisal - does not dictate the form, format, or style of real property appraisal reports. Composed of 4 standard rules. Development The process of research and analysis which results in the formulation of an opinion or conclusion Reporting The process of communicating the results to the client or intended users. Final step in the appraisal process. 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. Standards Rule 2-1 Addresses both written and oral reports of real property appraisals. Each written or oral real property appraisal report must: (a) clearly and accurately set forth the appraisal in a manner that will not be misleading; No Is the use of standard appraisal reporting forms required by standard 2? Appraisal report content STANDARD 2 sets forth requirements for: Appraisal Report; Restricted Appraisal Report An appraiser may use any other label in addition to, but not in place of, the
label set forth in this Standard for the type of report provided. Which two options, which must be stated by the appraiser, must each written real property appraisal report must be prepared under?
Level of detail and information provided What is the essential difference between the two reporting options (appraisal report and restricted appraisal report)? State and Summarize What are two words that are essential to understanding the differences between the written report options? Advisory Opinion 11 (AO 11) "Content of the Appraisal Report Options of Standards Rules 2-2, 8-2 and 10-2" Applicable in real property, personal property, and business/intangible property appraisals and provides advice and guidance on the difference between the written report options State Word used to connote a minimal presentation of information. Distinguishing term used in Restricted Appraisal Reports. Summarize Word used to connote an expanded presentation of information. Distinguishing term used in Appraisal Reports. Must When intended users include parties other than the client, an appraisal report _______ be provided. May When intended users do not include parties other than the client, a restricted appraisal report _____ be used. 2 How many subsections does standards rule 2-2 have? Standards Rule 2-2(a) Establishes minimum content for an Appraisal Report Standards Rule 2-2(b)
Establishes minimum content for a Restricted Appraisal Report. Name; Type The content of an Appraisal Report must, at a minimum: state the identity of the client and any intended users, by ______ or ______. A prominent use restriction In a Restricted Appraisal Report, the appraiser has the same obligation to state the identity of the client; and there is an additional requirement for the appraiser to insert what in the report. Use restriction statement Limits use of the report to the client and warns that the rationale for how the appraiser arrived at the opinions and conclusions set forth in the report may not be understood properly without additional information in the appraiser's workfile. Intended Use; this is the same for both appraisal reports and restricted appraisal reports In an Appraisal Report and a Restricted Appraisal Report, the appraiser must, at a minimum: state the _______________ of the appraisal. Physical; Legal; Economic - this info must be summarized at a minimum. The content of an Appraisal Report must, at a minimum: Summarize information sufficient to identify the real estate involved in the appraisal, including the ________, _______, and _________ property characteristics relevant to the assignment. Physical; Legal; Economic - this info must be stated at a minimum. The content of a Restricted Appraisal Report must, at a minimum: State information sufficient to identify the real estate involved in the appraisal, including the ________, _______, and _________ property characteristics relevant to the assignment. Real Property For Appraisal Reports and Restricted Appraisal Reports, the report content must, at a minimum{ state the ___________________ interest appraised. Value (note this is stated not summarized) The content of an Appraisal Report must, at a minimum: state the type and definition of _____ and cite the source of the definition. No - the appraiser is merely required to state the type of value and cite the source of the definition. (note this is stated not summarized) In a Restricted Appraisal Report, is the appraiser required to provide a value definition in the report? Effective date; date - same for both appraisal reports and restricted appraisal reports (note this is stated not summarized) The content of an Appraisal Report must, at a minimum: state the __________ date of the appraisal and the ______ of the report. Effective date of the appraisal The effective date for the value opinion. In many assignments, it is the date the property was inspected, but it does not always have to be the inspection date. Date of the Report Indicates the perspective from which the appraiser is examining the market, whether current, retrospective, or prospective. Advisory Opinion 34 (AO 34) Provides additional guidance for situations when an appraiser is reporting a retrospective or prospective value opinion. It establishes the appraiser's perspective on the market What is the importance of stating the date of the report? Effective date and report date When reporting the results of an appraisal, the two dates that must be included are: Summarize
The content of an Appraisal Report must, at a minimum: __________ the scope of work used to develop the appraisal. State The content of a Restricted Appraisal Report must, at a minimum: __________ the scope of work used to develop the appraisal. Extent - this may appear anywhere on the report The appraiser to disclose the extent of any significant real property appraisal assistance as part of the scope of work. Name(s) The ________ of the persons who provided significant real property appraisal assistance must be stated in the certification. Summarize - must provide sufficient information for the client and intended users to understand the rationale for the opinions and conclusions, including reconciliation of the data and approaches. The content of an Appraisal Report must, at a minimum: _____________ the information analyzed, the appraisal methods and techniques employed, and the reasoning that supports the analyses, opinions, and conclusions; exclusion of the sales comparison approach, cost approach, or income approach must be explained. State - must provide sufficient information for the client and intended users to understand the rationale for the opinions and conclusions, including reconciliation of the data and approaches. Exclusion of approaches must still be explained. The content of a Restricted Appraisal Report must, at a minimum: _____________ the information analyzed, the appraisal methods and techniques employed, and the reasoning that supports the analyses, opinions, and conclusions; exclusion of the sales comparison approach, cost approach, or income approach must be explained. The results of analyzing the subject sales, options, and listings in accordance with Standards Rule 1-5 What is the only item in a Restricted Appraisal Report that is required to be summarized? Summarized In an Appraisal Report, the scope of work used to develop the appraisal must be: Explained In a Restricted Appraisal Report, the exclusion of any of the valuation approaches must be: Date of value The content of an Appraisal Report and Restricted Appraisal Report must, at a minimum: state the use of the real estate existing as of the ___________ and the use of the real estate reflected in the appraisal; Summarize The content of an Appraisal Report must, at a minimum: when an opinion of highest and best use was developed by the appraiser, ___________ the support and rationale for that opinion; State The content of a Restricted Appraisal Report must, at a minimum: when an opinion of highest and best use was developed by the appraiser, it must be ___________. Support and rationale are not needed. State; State The report content of an Appraisal Report and a Restricted Appraisal Report must, at a minimum: Clearly and conspicuously _______ all extraordinary assumptions and hypothetical conditions; and _____ that their use might have affected the assignment results Signed The report content of an Appraisal Report and a Restricted Appraisal Report must, at a minimum: Include a _________ certification in accordance with Standards Rule 2-3. Advisory Opinion 12 (AO 12) applicable to the appraisal of real property, personal property, and intangible property and provides guidance on the question: What are the appropriate circumstances for the use of the report options? Diologue The existence of appraisal report options (appraisal report or restricted appraisal report) implies a ___________ between the appraiser and the client to define the appraisal problem prior to reaching an agreement to perform an assignment. Restricted Appraisal Report What appraisal report option would be best if the following were true: Development - cannot take shortcuts! The credibility of the value opinion is a function of the _________________ process, No In an appraisal assignment, an appraiser identifies an additional intended user in addition to the client. Does USPAP permit the appraiser to provide a Restricted Appraisal Report in this assignment? Equally credbile Compared to a value opinion expressed in an Appraisal Report, a value opinion expressed in a Restricted Appraisal Report is: State that its use may have affected the assignment results When an extraordinary assumption is used in an appraisal, the report must state the extraordinary assumption and: Yes Must an appraiser maintain a workfile when developing a Restricted Appraisal Report? Both Appraisal Report and Restricted Appraisal Report Which appraisal report option requires a signed certification acknowledging the appraiser is aware of and has met ethical obligations? Both written and oral reports Are signed certifications required for written or for oral reports? The certification statement If the appraiser has a present or prospective interest in the subject property or the parties involved, or has provided prior services related to the subject property within the prior three years, it must be disclosed where? Standards Rule 2-3 Rule that states an appraiser report must contain signed certification. The USPAP obligations for disclosure of real property appraisal assistance are also established in this rule. An appraiser who signs any part of the appraisal report (including the transmittal letter) If appraisal-related work is done by other individuals who do not sign the certification, the signing appraiser is responsible for the decision to rely on the work. Who must sign the certification in an appraisal report? - The report must clearly state who did and did not inspect the property If the individual who provides assistance signs the certification: - The name of the person who provided assistance must be stated in the certification If the individual who provides assistance does not sign the certification: Advisory Opinion 31 (AO-31) Provides additional guidance on signatures and certifications including why a signed certification is important and hammers home the rules laid out in standards rule 2-3. Sign the certification According to USPAP, any appraiser who signs any part of an appraisal report is required to: Yes, in all cases Does USPAP require an appraiser to disclose any significant real property appraisal assistance that was provided in an appraisal assignment? For the appraiser to acknowledge his or her ethical obligations What is the purpose of including a signed certification in an appraisal report? Standards Rule 2-4 Rule that addresses oral appraisal reports. It reads: To the extent that it is both possible and appropriate, an oral real property appraisal report must address the substantive matters set forth in Standards Rule 2-2(a). It also directs users to the Record Keeping Rule. The workfile must include... summaries of any oral reports or testimony, or a transcript of testimony, including the appraiser's signed and dated certification... A workfile must be in existence prior to the issuance of any report or other communication of assignment results. A written summary of an oral report must be added to the workfile within a reasonable time after the issuance of the oral report. What does the Record Keeping Rule state regarding oral reports? True True or False: If an appraiser provides an oral report of a real property appraisal assignment, the appraiser must add a signed and dated certification to her appraisal workfile. Within a reasonable time after A written summary of an oral appraisal report must be added to the appraiser's workfile ______________ the issuance of an oral report. Appraisal Report To the extent possible and appropriate, oral appraisal reports for real property must address the substantive matters that apply to a(n) Advisory Opinion 3 (AO-3) "Update of a Prior Appraisal" AO that is applicable to all property types and answers the question "Does USPAP address situations where a client asks an appraiser to update a prior appraisal and how can an appraiser comply with USPAP for such assignments?" Re-certification of Value What term is often mistakenly used by some clients in lieu of the term "Update"? To confirm whether or not the conditions of a prior appraisal have been met. Why is a re-certification of value performed? No Does a re-certification of value change the effective date of the value opinion? Treats this as a new assignment - because it is a new assignment When a client seeks a more current value or analysis of a property that was the subject of a prior assignment, what does an appraiser do? No - a different reporting option may be used Is a new report is required to have the same level of detail as the original report? 1. Provide a new report that contains all the necessary information/analysis to satisfy the applicable reporting requirements, WITHOUT INCORPORATION of the prior report by either attachment or reference. What are the three ways in which an update (new) assignment may be reported? Advisory Opinion 26 (AO-26) "Readdressing (Transferring) a Report to Another Party" AO that applies to all property types and answers the question: Does USPAP allow an appraiser to "readdress" (transfer) a report by altering it to indicate a new recipient as the client or additional intended user when the original report was completed for another party? No. Once a report has been prepared for a named client(s) and any other identified intended users and for an identified intended use, the appraiser cannot "readdress" (transfer) the report to another party. Does USPAP allow an appraiser to "readdress" (transfer) a report by altering it to indicate a new recipient as the client or additional intended user when the original report was completed for another party? Advisory Opinion 27 (AO 27) "Appraising the Same Property for a New Client" AO that applies to all property types and addresses the question: Under what circumstances can an appraiser accept an assignment to appraise a property for a prospective client when that appraiser has previously completed an appraisal of the same property for another client? Accepting the assignment from the subsequent prospective client is not prohibited by USPAP, assuming appropriate disclosure is made to the client before being engaged and any existing confidential information is handled properly. Under what circumstances can an appraiser accept an assignment to appraise a property for a prospective client when that appraiser has previously completed an appraisal of the same property for another client? Release Sometimes this is not ok because it is not in line with the compliance rule. Sometimes also a client may not want the release (auction example) and they must stipulate the conditions in the service agreement Some appraisers request a ___________ from a prior client before accepting an assignment to appraise the same property for a new client or to disclose the assignment for the second client to the first client. No - this is not required Does USPAP require a release before accepting am assignment to appraise the same property for a new client? He is not permitted to "readdress" the report to Bank B An appraiser completes an appraisal for Bank A. Two months later, he is contacted by Bank B, who asks him to "readdress" his prior report to them. Is the appraiser permitted to readdress the report? False True or False: USPAP requires an appraiser to obtain a release from a previous client before appraising the same property for a new client. No Does a re-certification of value change the effective date of the value? New Assignment If a client requests a more current valuation on a property that was the subject of a prior assignment, this is a(n) ____________. No description is required in the certification. Standards Rule 2-2 requires the extent of the assistance to be summarized or stated in the report. It COULD be in the certification though. I currently work in an appraisal firm as a Trainee Appraiser. I contribute significant real property appraisal assistance to appraisal assignments performed by other appraisers in the firm, but do not sign the certification or report. I understand my name must be stated in the certification. Must the certification include a description of my assistance? If the report does not represent your own opinions and conclusions, then you must not sign the report or the certification. An appraiser making changes that he or she does not agree with would not be reporting his or her own personal analyses, opinions, or conclusions. I am employed at a firm where my reports are reviewed by a supervisory appraiser. The supervisory appraiser recently asked me to make changes to a report that resulted in a value opinion with which I do not agree. I am not comfortable signing the amended report. What are my obligations under USPAP? Reporting of the value conclusion to the client is an oral report. A summary of such a report, along with the appraiser's signed and dated certification must be included in the workfile. The appraiser has met the assignment conditions by completing the appraisal, providing an oral report and maintaining a workfile for the assignment. A mortgage client hired an appraiser to prepare an appraisal on a one-unit property. He asked that she discuss her value opinion with him orally prior to transmitting the report. The appraiser completed her analysis and telephoned the client with her conclusions. The client was indignant and objected strongly to the value conclusion, indicating that the "figure" would not help his client's objectives. He further indicated that there would be no need to provide a written report. What are the appraiser's obligations under USPAP? Not sign the certification If a supervising appraiser makes changes to a trainee's appraisal report which the trainee does not agree with, the trainee should: Restricted Appraisal Reports The client must be the only intended user for: Students also viewedappraisal49 terms thiagodelia National Appraisal USPAP #274 terms quizlette4149976Plus uspap50 terms vitocanuso Chapter 8 - STANDARD 223 terms Mallory_Wright69 Sets found in the same folderUSPAP 15-Hour Course171 terms glenda_wise1 Chapter 2: Definitions38 terms sadielady082 Chapter 3: Preamble and When USPAP Applies31 terms sadielady082 Chapter 4: The Ethics Rule, The Record Keeping Rul…70 terms sadielady082 Other sets by this creatorChapter 7: VA Jurisdictional Requirements for Supe…68 terms sadielady082 Chapter 6: Overview of Trainee Appraiser Expectati…21 terms sadielady082 Chapter 5: Overview of Supervisory Appraiser Expec…16 terms sadielady082 Chapter 4: Overview of USPAP58 terms sadielady082 Other Quizlet setsChapter 7 Apes multiple choice30 terms CommunistCows Online 30 Hour Broker Test Prep Part 417 terms Gino_Kassab7 Accounting Chapters 6 and 727 terms erinca311 Mock Exam 190 terms Sole_B5 Which is a required part of an appraisal review report?Beyond typical assignment elements required in appraisals (i.e. state the client, intended users, report date, etc), the appraisal review report must include these components: Summary of the work under review's assignment elements and scope of work. Reviewer's Scope of Work summary. Reviewer's analysis and conclusions.
Where must the scope of work performed in an assignment be disclosed in the report?The SCOPE OF WORK RULE states that an appraiser's scope of work is acceptable when it meets or exceeds: Yes - It is the scope of work actually performed, not the scope of work initially planned, that must be disclosed in the appraisal or appraisal review report.
What is the main task of the appraiser in the appraisal process?Appraisers perform analyses and render opinions or conclusions relating to the nature, quality, value, or utility of specified interests in, or aspect of, identified real estate.
What is the first step in the appraisal process determine the problem determine the scope of work select and collect data perform data analysis?Step 1: Define the Appraisal Problem. ... . Step 2: Determine the Scope of Work. ... . Step 3: Analyze the Property's Use, Select Most Appropriate Market,. Step 4: Collect and Analyze Data, Apply Most Appropriate.. Step 5: Analyze Subject Property Listings or Prior Sales.. |
In an appraisal report, the scope of work used to develop the appraisal must be
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