After giving an oral value opinion in a deposition, the appraiser's workfile must include:
Correct Answer
A) Documentation of the substance of the testimony, meeting workfile rules
For an oral appraisal report or testimony, retain a summary of the oral report or a transcript of testimony, including the appraiser’s signed and dated certification, along with the required supporting workfile material. The RECORD KEEPING RULE is distinct from SR 1-5. Retain the workfile at least five years after preparation or at least two years after final disposition of any judicial proceeding in which the appraiser provided related testimony, whichever period expires last.
Why This Is the Correct Answer
Option A is correct because the RECORD KEEPING RULE requires the workfile to include summaries of all oral reports or testimony, or a transcript of testimony, including the appraiser's signed and dated certification. It must also include all other data and documentation needed to support the opinions and show USPAP compliance. Documenting the substance of the testimony meets those workfile rules.
Why the Other Options Are Wrong
Option B: Nothing further, since the testimony is transcribed by the court reporter
Option B, nothing further because the court reporter transcribes the testimony, is wrong. The appraiser's own workfile must contain a summary or transcript with the signed and dated certification and supporting material; the court's record does not substitute for it.
Option C: Only the subpoena that compelled the appearance
Option C, only the subpoena that compelled the appearance, is too narrow. A subpoena does not document the substance of the testimony or the support for the opinions.
Option D: The opposing expert's report for comparison
Option D, the opposing expert's report for comparison, is not a workfile requirement. The workfile must support the appraiser's own opinions, not include another expert's report for comparison.
Spoken still gets written
Even if the opinion was given out loud, the workfile needs it in writing: a summary or transcript plus a signed certification.
How to use: Use this when a question involves oral reports, depositions or testimony.
Exam Tip
For oral reports or testimony, look for the answer that puts a summary or transcript and the certification into the appraiser's own workfile.
Common Mistakes to Avoid
- -Relying on the court reporter's transcript instead of the workfile
- -Keeping only the subpoena or engagement paperwork
- -Miscounting the workfile retention period after litigation
Concept Deep Dive
Analysis
This question tests the RECORD KEEPING RULE as it applies to oral testimony. The workfile must include a summary of the oral report or testimony, or a transcript, with the appraiser's signed and dated certification, plus supporting documentation. A court reporter's transcript elsewhere does not relieve the appraiser of this duty.
Background Knowledge
The RECORD KEEPING RULE requires a workfile for each appraisal or review assignment containing specific items, including summaries of oral reports or testimony or a transcript with the certification. Workfiles must be retained for at least five years after preparation or at least two years after final disposition of a judicial proceeding in which the appraiser testified, whichever expires last. This rule is separate from the development requirements in Standard 1.
Real-World Application
After testifying in a divorce deposition about a home's value, an appraiser writes a summary of her testimony with a signed and dated certification. She files it with her sales data and notes so the workfile supports her opinion.
More USPAP Questions
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According to USPAP, what is the primary purpose of the Ethics Rule?
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Which list gives the sections of the 2024 USPAP Ethics Rule?
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