An appraiser stores workfiles entirely in electronic form. This is:
Correct Answer
C) Acceptable if the files are retrievable for the retention period
Why this is correct: USPAP's Record Keeping Rule focuses on the content, accessibility, and retrievability of workfiles, not their physical format. Electronic storage is acceptable as long as the appraiser can produce the complete workfile for the required retention period (typically five years). Why the other choices are wrong: There is no value threshold that dictates acceptable storage medium. Paper copies are not required. The client's written consent is not a USPAP requirement for electronic storage. Exam tip: The key test is retrievability. Ensure your electronic files are backed up and stored in a format that will remain accessible.
Why This Is the Correct Answer
Why this is correct: USPAP's Record Keeping Rule focuses on the content, accessibility, and retrievability of workfiles, not their physical format. Electronic storage is acceptable as long as the appraiser can produce the complete workfile for the required retention period (typically five years). Why the other choices are wrong: There is no value threshold that dictates acceptable storage medium. Paper copies are not required. The client's written consent is not a USPAP requirement for electronic storage. Exam tip: The key test is retrievability. Ensure your electronic files are backed up and stored in a format that will remain accessible.
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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A property has an actual highest and best use as a single-family residence, but the appraiser is asked to value it 'as if' it could be developed as a duplex for financing purposes. The duplex development is not legally permissible. This scenario requires:
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A reviewer who develops an opinion of value as part of a review assignment must: