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:
Correct Answer
C) Disclose the prior service to the new client before accepting
USPAP requires disclosure of services performed regarding the subject property in any capacity within the preceding three years, before agreeing to the assignment or upon discovery during it, and in the certification. This includes the fact of relevant prior service, not unrestricted disclosure of the earlier assignment results. The appraiser must preserve confidentiality and impartiality. A prior assignment does not automatically bar new work or fix the fee.
Why This Is the Correct Answer
Option C is correct because USPAP requires that, if known before agreeing to perform an assignment, an appraiser must disclose to the client, and in each subsequent report certification, any services regarding the subject property performed within the preceding three years. An appraisal 18 months ago falls within that window. The appraiser discloses the fact of the prior service, not the confidential results of the earlier assignment.
Why the Other Options Are Wrong
Option A: Provide the prior report to the new client
Option A says to provide the prior report to the new client. The earlier assignment results belong to the prior client and are subject to confidentiality; USPAP requires disclosing the fact of the service, not sharing the report.
Option B: Decline because of the previous engagement
Option B says to decline because of the previous engagement. A prior assignment on the same property does not automatically bar new work; disclosure of the prior service is what USPAP requires.
Option D: Charge exactly the same fee as was charged for the prior assignment
Option D says to charge exactly the same fee as for the prior assignment. USPAP does not tie the fee for a new assignment to a fee charged earlier, and fee amounts are not part of the prior-services disclosure.
Three Years, Tell Up Front
If you worked on the property within three years, tell the new client before agreeing. Share the fact of the service, not the old report.
How to use: Use this reminder when a question involves prior work on the same property.
Exam Tip
For prior services questions, look for disclosure before agreeing and in the certification. Answers that require refusing the work or handing over the old report go beyond the rule.
Common Mistakes to Avoid
- -Sharing the prior client's report with the new client
- -Believing a prior assignment on the property requires declining
- -Forgetting to include the prior service in the report certification
Concept Deep Dive
Analysis
This question tests the USPAP disclosure requirement for prior services regarding the subject property. Services performed within the preceding three years must be disclosed to the client before agreeing to an assignment, or when discovered during it, and in the certification. A prior appraisal 18 months ago falls within that period, so disclosure is required, but it does not bar the assignment or require sharing the prior report.
Background Knowledge
The prior services disclosure helps clients judge whether an appraiser's earlier involvement could affect impartiality. It covers services regarding the subject property in any capacity within the preceding three years. Appraisers must still protect confidential information from the earlier assignment while making the disclosure.
Real-World Application
A lender asks an appraiser to value a house he appraised for a different lender 18 months ago. Before accepting, he tells the new client he performed an appraisal of the property within the past three years. He does not share the earlier value or report, and he states the prior service in his certification.
More USPAP Questions
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Which list gives the sections of the 2024 USPAP Ethics Rule?
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