Question

Which of the following statements regarding Canadian unit for standards of professional appraisal practice (CUSPAP) is false?

a) The real property appraisal standard deals are the procedures for the development of communication of a formal opinion of value for real property and incorporates the minimum contact necessary to produce a credible report that will not be misleading
b) According to CUSPAP appraisal practice includes but is not limited to appraisal review and consulting
c) CUSPAP dictates the form, format, and style of reporting
d) Adherence to CUSPAP when preparing reports can help reduce an appraiser's exposure to civil action

Answer 1

The false statement regarding CUSPAP is that it dictates the form, format, and style of reporting, as these are determined by use, convention, and the appraiser's discretion.

Step-by-step explanation:

The question pertains to the Canadian Unit for Standards of Professional Appraisal Practice (CUSPAP). Among the provided statements, the false one is (c) CUSPAP dictates the form, format, and style of reporting. While CUSPAP does set out standards for quality and ethical considerations, it does not mandate a specific form, format, or style for reports. These are often dictated by the intended use or user, market conventions, and the appraiser's judgment.

Statement (a) is correct in that the real property appraisal standard deals with the procedures necessary for a credible report. Statement (b) is also correct as CUSPAP's appraisal practice includes appraisal review and consulting, not just the appraisal itself. Lastly, statement (d) is true as adherence to CUSPAP can help mitigate legal exposure for appraisers by ensuring their work adheres to recognized professional standards.