Which condition can establish a jurisdictional exception under USPAP 2024?
Correct Answer
B) A law or regulation that actually precludes compliance with a part
A jurisdictional exception requires actual preclusion by applicable law or regulation, not a preference, custom, or merely a government assignment. Only the affected part is void for the assignment, with the required law identification, compliance, conspicuous report disclosure, and citation. State/local law cannot void compliance required by federal law. The rule does not state a separate categorical Ethics/Competency immunity clause; use its actual conditions rather than an invented mnemonic.
Why This Is the Correct Answer
Option B is correct because USPAP states that if any applicable law or regulation precludes compliance with any part of USPAP, only that part becomes void for that assignment. Actual legal preclusion is the required condition. The appraiser must then identify the law, comply with it, and disclose and cite it in the report as required.
Why the Other Options Are Wrong
Option A: A client’s preference for less disclosure in the final report
Option A, a client's preference for less disclosure in the final report, is not law or regulation. A client preference cannot void any part of USPAP.
Option C: A government client’s request, with no law precluding compliance
Option C, a government client's request with no law precluding compliance, does not meet the condition. The client being a government body does not matter; without a law or regulation that precludes compliance, there is no jurisdictional exception.
Option D: A local custom that is more convenient than the required work
Option D, a local custom that is more convenient than the required work, is neither law nor regulation. Convenience or custom does not void a USPAP requirement.
Only law can void
A jurisdictional exception needs a law or regulation that actually blocks compliance, and it voids only the blocked part.
How to use: Use this to eliminate options based on client wishes, customs, or convenience.
Exam Tip
Check whether the option names an actual law or regulation that precludes compliance; anything less is not a jurisdictional exception.
Common Mistakes to Avoid
- -Treating a client's instruction as a jurisdictional exception
- -Assuming a government client creates an exception by itself
- -Believing a jurisdictional exception voids all of USPAP for the assignment
Concept Deep Dive
Analysis
This question tests the trigger for the USPAP JURISDICTIONAL EXCEPTION RULE. The rule applies only when an applicable law or regulation actually precludes compliance with a part of USPAP, and then only that part becomes void for that assignment. Preferences, customs, and client identity do not create an exception.
Background Knowledge
The JURISDICTIONAL EXCEPTION RULE preserves the rest of USPAP when a specific part conflicts with applicable law. Only the conflicting part is voided for that assignment, and the appraiser must identify the law, comply with it, clearly and conspicuously disclose the exception in the report, and cite the law. State or local law cannot void compliance that federal law requires.
Real-World Application
A state statute governing condemnation appraisals requires a specific valuation method that conflicts with a part of USPAP. The appraiser follows the statute for that part, complies with the rest of USPAP, and discloses and cites the law in the report.
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