An appraiser completes an assignment but the client stops responding and never pays. Regarding the report, the appraiser:
Correct Answer
D) Still owes confidentiality — nonpayment does not release those obligations
Why this is correct: The Ethics Rule's confidentiality obligation persists regardless of payment. The appraiser cannot disclose assignment results to others (like another lender or the borrower) without client permission, even if unpaid. Why the other choices are wrong: "May sell the completed report to any other interested lender" violates confidentiality. "Must still publish the value opinion in a public database" is not required and violates confidentiality. "May disclose the assignment results to the borrower instead" is wrong; the borrower is not the client unless engaged. Exam tip: Confidentiality is not contingent on payment. Use legal means for fee disputes.
Why This Is the Correct Answer
Why this is correct: The Ethics Rule's confidentiality obligation persists regardless of payment. The appraiser cannot disclose assignment results to others (like another lender or the borrower) without client permission, even if unpaid. Why the other choices are wrong: "May sell the completed report to any other interested lender" violates confidentiality. "Must still publish the value opinion in a public database" is not required and violates confidentiality. "May disclose the assignment results to the borrower instead" is wrong; the borrower is not the client unless engaged. Exam tip: Confidentiality is not contingent on payment. Use legal means for fee disputes.
More USPAP Questions
Which type of appraisal report may contain the appraiser's analyses, opinions, and conclusions but is intended for use by the client only?
How long must an appraiser retain the workfile for an appraisal assignment under USPAP?
If an appraiser uses a hypothetical condition that the subject property is 10% larger than it actually is, this must be:
Under Standard 1, when developing a real property appraisal, an appraiser must:
An appraiser accepts an assignment to appraise a specialized industrial property but has never appraised this property type before. To comply with the Competency Rule, the appraiser:
According to the Scope of Work Rule, the scope of work must be appropriate to the:
According to Standard 1, when developing an opinion of market value, an appraiser must analyze:
A lender emails: 'We need at least $450,000 to make this loan work — can you take the assignment?' Accepting on that basis is:
An appraiser is developing an opinion of market value for a 20-unit apartment building. The appraiser finds three comparable sales with the following information: Sale 1: 18 units, sold for $1,800,000; Sale 2: 22 units, sold for $2,200,000; Sale 3: 24 units, sold for $2,280,000. What is the average price per unit for these comparables?
In developing a scope of work, an appraiser must consider all of the following factors EXCEPT:
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