Question

Which of the following statements regarding intended use of an appraisal is FALSE?

a) The intended use of the report is determined by the client's problem and/or decision to be made
b) The client's intended use of the report may affect the fee to be charged
c) The client's intended use may inform the type of report required to be completed
d) Intended use is a part of CUSPAP, but not the First Principles of Value

Answer 1

The false statement regarding the intended use of an appraisal is that it is part of CUSPAP but not the First Principles of Value, which is incorrect as it is integral to both.

Step-by-step explanation:

Among the statements regarding intended use of an appraisal, the one that is FALSE is:

d) Intended use is a part of CUSPAP, but not the First Principles of Value.

Intended use is indeed a significant part of both CUSPAP (Canadian Uniform Standards of Professional Appraisal Practice) and also an integral aspect of the First Principles of Value, which underpin appraisal methodology and practice. The intended use guides which appraisal procedure is relevant, and it affects aspects such as scope, approach, and detail required in an appraisal report. The intended use is determined by the client's needs and informs the type of report, level of detail, and sometimes the fees associated with the appraisal.