Communication & Client Relations Flashcards
7 cards from real ARA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Communication & Client Relations flashcards as text
What does USPAP's Competency Rule require an appraiser to communicate to the client when accepting an assignment in an unfamiliar rural property type?
Answer: The lack of competency and the steps being taken to acquire it before completing the assignment
USPAP's Competency Rule requires disclosing any lack of competency to the client and explaining how it will be remedied prior to completing the assignment.
An ARA appraiser working on a ranch appraisal learns during the inspection that the property has pending litigation affecting title. What is the appropriate communication to the client?
Answer: Disclose the discovered title issue to the client and clarify how it should be treated in the appraisal scope
Newly discovered information affecting value and title must be communicated to the client so appropriate assumptions or scope adjustments can be made.
When a rural appraisal client is a non-English speaker, what is the appraiser's primary communication responsibility?
Answer: Ensure the appraisal report and key findings are communicated in a way the client can understand, using translators if necessary
The appraiser's professional duty includes ensuring clients understand the report's key conclusions, which may require translation assistance.
An appraiser is asked by a lender client to include a specific rental rate assumption for vacant farmland in the appraisal. What communication is required?
Answer: Evaluate whether the assumption is reasonable, and if extraordinary, disclose and label it as an extraordinary assumption in the report
Client-provided assumptions must be evaluated for reasonableness and, if extraordinary, clearly labeled as extraordinary assumptions within the report.
After completing a rural appraisal, a client asks the appraiser to remove the section discussing negative environmental conditions from the final report. What is the correct response?
Answer: Decline to remove material information that could affect value and explain that omission would mislead intended users
Removing material information that affects value would violate USPAP's requirement that reports not be misleading and would constitute unethical conduct.
Which element of a written rural appraisal report most directly reflects the quality of client communication throughout the assignment?
Answer: The scope of work section, which documents agreed-upon assignment conditions and limitations
The scope of work section reflects all pre-assignment communications about conditions, limitations, and intended use that were agreed upon with the client.
An ARA appraiser is hired by a bank to appraise collateral for a farm loan. The borrower (property owner) calls to ask about the appraisal value before the report is submitted to the bank. What should the appraiser do?
Answer: Explain that the client is the bank and direct value inquiries through the lender per USPAP confidentiality rules
USPAP requires that assignment results be kept confidential from non-clients; the borrower should be directed to request the information through the lender client.