Report Writing & Ethical Standards 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 Report Writing & Ethical Standards flashcards as text
In a rural appraisal report, when the cost approach is used, which item must be clearly identified and supported?
Answer: Depreciation amount and its basis
The cost approach requires the appraiser to clearly identify and support the depreciation estimate applied to improvements.
A rural property appraisal report must adequately describe the subject's agricultural characteristics because:
Answer: These characteristics directly influence market value and highest and best use
Agricultural characteristics such as soil quality, water rights, and productivity directly affect the property's market value and highest and best use conclusion.
When reporting market conditions in a rural appraisal, an appraiser should include:
Answer: Supply and demand trends for similar rural properties in the market area
Reporting supply and demand trends for comparable rural properties gives the reader context for the market value conclusion.
An appraiser who advertises guaranteed results or a specific value conclusion before completing the analysis violates which USPAP rule?
Answer: Ethics Rule – Conduct section
Advertising guaranteed or predetermined results violates the Ethics Rule's Conduct section, which prohibits advocacy for a client's cause to the detriment of objectivity.
When comparable sales involve properties with water rights and the subject does not, the appraiser must:
Answer: Make a downward adjustment to the comparables for the water rights they possess
Comparables with water rights are superior to the subject in that attribute; the appraiser must make a downward adjustment to those sales to reflect the subject's lack of water rights.
The SCOPE OF WORK RULE requires the appraiser to identify the problem and determine the scope of work necessary to:
Answer: Produce credible assignment results
The Scope of Work Rule states that the appraiser must do what is necessary to produce credible assignment results given the intended use.
Under USPAP, an appraiser's work file for each appraisal must be retained for a minimum of:
Answer: 3 years from the date of the report or 2 years after final legal proceedings, whichever is longer
USPAP Record Keeping Rule requires retention for at least 5 years from the report date or 2 years after final legal proceedings, whichever is longer.