Under USPAP’s Ethics Rule, which statement best describes when confidential information or assignment results may be disclosed?
Correct Answer
D) To permitted recipients such as client-authorized parties and regulators
Permitted recipients include the client, specifically client-authorized parties, state appraiser regulators, persons authorized by due process and duly authorized professional appraisal peer-review committees, subject to the rule’s conditions. An intended-user request alone is not blanket authorization to disclose protected information.
Why This Is the Correct Answer
Option D is correct because USPAP allows disclosure of confidential information or assignment results to the client, parties specifically authorized by the client, state appraiser regulatory agencies, third parties authorized by due process of law, and a duly authorized professional peer review committee. Client-authorized parties and regulators are on that list.
Why the Other Options Are Wrong
Option A: Whenever another intended user asks, even without client authorization
Option A is wrong because an intended user's request without client authorization is not on the permitted list. Being an intended user does not by itself authorize disclosure of protected information.
Option B: Only after five years have passed since the report was delivered
Option B is wrong because USPAP sets no rule allowing disclosure only after five years have passed since delivery. The waiting period in this option does not come from the Confidentiality section, which is based on who the recipient is.
Option C: Whenever a professional association informally requests the file
Option C is wrong because an informal request from a professional association is not authorization. Only a duly authorized professional peer review committee is a permitted recipient.
Client, authorized, regulator, court, peers
Permitted recipients are the client, client-authorized parties, state regulators, due-process parties and duly authorized peer review committees.
How to use: Use this list to test each answer choice on confidentiality questions.
Exam Tip
Watch for the word informally or for missing client authorization; those usually mark a distractor.
Common Mistakes to Avoid
- -Assuming any intended user can receive confidential results without client authorization
- -Treating informal association requests as peer review
- -Inventing a time limit after which confidentiality ends
Concept Deep Dive
Analysis
This question tests the Confidentiality section of the Ethics Rule. Confidential information and assignment results may be disclosed only to a defined list of recipients. Compare each option against that list: client, client-authorized parties, state regulators, parties authorized by due process and duly authorized peer review committees.
Background Knowledge
The Confidentiality section protects confidential information and assignment results. Confidential information generally means information identified by the client as confidential or classified as confidential by law, and not otherwise publicly available. The permitted recipient list is narrow, and peer review disclosures carry additional conditions.
Real-World Application
A borrower calls an appraiser asking for a copy of the lender's appraisal and the appraiser's notes. The appraiser does not release the results directly and refers the borrower to the lender client, which can authorize or provide the report. Later the state board subpoenas the workfile, and the appraiser complies because state regulators are a permitted recipient.
More USPAP Questions
Under USPAP, what are assignment results?
The certification required by Standards Rule 2-3 must be signed by:
Under 2024 USPAP, which statement correctly combines the requirements for an oral real property appraisal report and its workfile?
An appraiser accepts an assignment involving a property type the appraiser has valued once before, years ago. Competency requires:
A Certified General appraiser is asked to value a specialized industrial property for the first time. The appraiser knows a competency gap exists before agreeing to the assignment. What is required if the appraiser proceeds?
Under 2024 USPAP Standard 1, which listed assignment element must be identified in developing a real property appraisal?
An appraiser provided an appraisal of the same property for another client 18 months ago. No confidentiality obligation prevents disclosing the fact of that service. Before agreeing to a new assignment, the appraiser must:
According to USPAP, what is the primary purpose of the Ethics Rule?
An appraiser is asked to determine 'fair market value' for an assignment. According to USPAP, the appraiser should:
Which list gives the sections of the 2024 USPAP Ethics Rule?
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