Which USPAP Advisory Opinion addresses contaminated properties?

Which USPAP Advisory Opinion addresses contaminated properties?

• A. AO-5
• B. AO-9
• C. AO-11
• D. AO-13

Answer: (B)

Contaminated properties require special attention because environmental issues can significantly affect value, risk, and marketability. USPAP’s Advisory Opinions give practical guidance for topics not fully spelled out in the Standards, and the advisory opinion that focuses on contaminated properties outlines how to handle environmental contamination in the appraisal process. It covers recognizing when contamination is present, deciding what data and sources are appropriate, and shaping the scope of work, disclosures, and reporting to reflect the potential impact on value. The guidance also notes when to involve an environmental professional and how to address remediation costs, conditions, and risk in the appraisal conclusion. Other advisory opinions address different appraisal topics, not environmental contamination, so they aren’t the ones that specifically address contaminated properties.

Contaminated properties require special attention because environmental issues can significantly affect value, risk, and marketability. USPAP’s Advisory Opinions give practical guidance for topics not fully spelled out in the Standards, and the advisory opinion that focuses on contaminated properties outlines how to handle environmental contamination in the appraisal process. It covers recognizing when contamination is present, deciding what data and sources are appropriate, and shaping the scope of work, disclosures, and reporting to reflect the potential impact on value. The guidance also notes when to involve an environmental professional and how to address remediation costs, conditions, and risk in the appraisal conclusion. Other advisory opinions address different appraisal topics, not environmental contamination, so they aren’t the ones that specifically address contaminated properties.