Under USPAP, an assignment condition such as extraordinary assumptions must be disclosed.

• A. Disclose only if client asks
• B. Never disclosed
• C. Disclosed only to the appraiser's supervisor
• D. Must be disclosed in the engagement or report as applicable

Answer: (D)

Extraordinary assumptions and assignment conditions influence the reliability of the appraisal opinion, so USPAP requires clear disclosure so users understand the basis of the value conclusion. These disclosures must appear in the engagement document (the engagement letter) and in the appraisal report, as applicable, to provide transparency to both the client and any users of the report. It isn’t optional or only shared if someone asks, and it isn’t something kept only for a supervisor. If the assumption proves false, the appraiser would typically need to revise the report or adjust the conclusion. For example, assuming a property is free of certain latent defects should be disclosed so users know the condition relied upon. This is why the correct approach is to disclose in the engagement or report as applicable.