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
A client asks an ARA appraiser to change the effective date of a completed appraisal to a more favorable market period. The appraiser should:
Answer: Refuse, as changing the effective date would misrepresent the assignment conditions
Altering the effective date after the fact misrepresents the assignment and violates the Ethics Rule.
In a self-contained rural appraisal report, the neighborhood description should address:
Answer: Land use patterns, distance to services, and typical buyer motivations
A neighborhood analysis in a rural report must cover land use patterns, proximity to markets and services, and factors that motivate buyers in that area.
When an appraisal is performed for crop insurance purposes, the appraiser should ensure the report clearly states the:
Answer: Intended use and intended users of the report
USPAP requires every report to clearly identify the intended use and all intended users, especially important when use is specialized like crop insurance.
Which statement about an oral appraisal report under USPAP is TRUE?
Answer: An oral report must still be supported by a complete work file
Even when an appraisal is communicated orally, USPAP requires the appraiser to maintain a work file supporting the conclusions.
An ARA appraiser discovers after submitting a report that a comparable sale was an arm's-length transaction between related parties. The appraiser should:
Answer: Notify the client and, if the conclusion is affected, issue a corrected report
If post-submission information affects the appraisal's credibility, USPAP requires the appraiser to notify the client and correct the report if necessary.
A fee appraiser is offered a bonus by the lender if the rural property appraises at or above a target value. Accepting this arrangement would violate:
Answer: The Ethics Rule's Management section regarding contingent fees
Accepting compensation contingent on a specific outcome violates the Ethics Rule – Management section, which prohibits contingent fees tied to value conclusions.
When the income approach is included in a rural appraisal report, the appraiser must disclose:
Answer: The capitalization rate used and its derivation
The income approach requires disclosure and support for the capitalization rate selected, including how it was derived from market data.