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AI - Module 21 Appraisal Principles in Practice questions with actual answers.
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AI - Module 21 Appraisal Principles inPractice questions with actual answers.
After reading Devin's appraisal report, an identified intended user of the report was confused as to the
extent of analysis performed in the appraisal. What error did the Devin potentially commit in this
instance?
a. The appraiser did not commit an error in this instance so long as the client was not confused.
b. The scope of work disclosed in the report must be the actual work performed rather than what is
proposed.
c. The report must contain enough information to allow the intended users to understand the scope of
work the appraiser performed.
d. The appraiser should not have identified the individual who was confused as an intended user in the
appraisal report. ANS -c. The report must contain enough information to allow the intended users to
understand the scope of work the appraiser performed.
A government agency requires that a property being acquired for eminent domain purposes must be
appraised as if free and clear of contamination. What type of assignment condition should be used if the
appraiser is uncertain whether the property has contamination issues?
a. special supposition
b. extraordinary assumption
c. hypothetical condition
d. the appraiser should use all the listed assignment conditions ANS -b. extraordinary assumption
Tony purchased a two-story, brick dwelling in the central business district of Morton. The property
consists of two apartments on the upper level and a commercial area on the main level. Tony plans to
open an antique shop in the commercial area and continue the lease on the two apartments upstairs. He
will not occupy either of the upstairs apartments as he already has a primary residence located nearby.
Which is the best-cited characteristic to be addressed in the scope of work?
a. lease simple
, b. lease fee
c. fee simple
d. leasehold ANS -b. lease fee
Martin currently has his mortgage through First National Bank. Two months ago he refinanced for a
lower rate. The appraised value at the time of refinancing was less than his assessed tax value. In the
hope of lowering his taxes, he plans on giving the assessor a copy of the report. Can the report be used
for this purpose?
a. The scope of work for Martin's refinance would have included the intended use to secure financing for
the dwelling. Martin, being the intended user, can order the scope of work to be adjusted for his new
purpose.
b. The scope of work for Martin's refinance would not have included the intended use. Martin is the
assumed user and is allowed to use the appraisal for any purpose pertaining to him.
c. The scope of work for Martin's refinance would have included the intended use to secure financing for
the dwelling. The intended user is First National Bank.
d. The scope of work for Martin's refinance ANS -c. The scope of work for Martin's refinance would have
included the intended use to secure financing for the dwelling. The intended user is First National Bank.
At the inspection, Jorge is told that the owner plans on adding a family room addition and wants it
included in the appraised value. The client authorizes its inclusion. How should Jorge include the
addition?
a. nothing is required as the client authorized its analysis
b. a hypothetical condition should be used
c. an extraordinary assumption should be used
d. a hypothetical assumption is needed ANS -b. a hypothetical condition should be used
You receive an order for a "full" appraisal on a residential property. You try to make an appointment but
are rebuffed by the occupant. The client changes the order to an "exterior only" appraisal. What part the
development process changes?
a. the intended user
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