Which disclosure violates USPAP confidentiality requirements, assuming no other applicable authorization or legal exception?
Correct Answer
A) Sharing protected assignment results with an unauthorized colleague solely for education
Educational interest alone does not authorize disclosure of confidential information or assignment results. Permitted recipients include the client, persons specifically authorized by the client, state appraiser regulatory agencies, persons authorized through due process of law, and duly authorized professional peer review committees except where prohibited by law. Protect applicable confidential information and results even after completion; generic methodological discussion can occur without revealing protected material.
Why This Is the Correct Answer
Option A is correct because the ETHICS RULE requires the appraiser to protect the confidential nature of the appraiser-client relationship and not disclose confidential information or assignment results to anyone other than permitted recipients. An unauthorized colleague is not on that list, and an educational purpose does not create an exception.
Why the Other Options Are Wrong
Option B: Providing required information to a state appraiser regulatory agency
Option B, providing required information to a state appraiser regulatory agency, is a permitted disclosure under the confidentiality provisions, so it is not a violation.
Option C: Communicating the assignment results to the client who engaged the appraiser
Option C, communicating assignment results to the client who engaged the appraiser, is permitted because the client is an authorized recipient.
Option D: Providing information to a person who is authorized to receive it through due process of law
Option D, providing information to a person authorized through due process of law, is a permitted disclosure, so it does not violate confidentiality.
Good intent is not permission
Teaching or learning is a good reason, but it is not on USPAP's list of permitted recipients.
How to use: Use this when a disclosure is justified by a worthy motive rather than an authorized recipient.
Exam Tip
Check the recipient against the permitted list; the motive for disclosure does not change who is authorized.
Common Mistakes to Avoid
- -Believing educational purposes permit sharing confidential results
- -Thinking disclosure to a state regulatory agency violates confidentiality
- -Assuming confidentiality ends when the assignment is complete
Concept Deep Dive
Analysis
This question tests the confidentiality section of the ETHICS RULE. You must identify the one disclosure that goes to a recipient USPAP does not permit, with no authorization or legal exception.
Background Knowledge
Permitted recipients of confidential information and assignment results include the client, persons specifically authorized by the client, state appraiser regulatory agencies, persons authorized by due process of law, and duly authorized professional peer review committees except where prohibited by law. The duty continues after the assignment ends.
Real-World Application
An appraiser wants to show a colleague a recent report as a teaching example. Without client authorization, the appraiser instead discusses the general method with the colleague without revealing the client's confidential information or assignment results.
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