An appraiser stores workfiles in a cloud service. What obligation does the Ethics Rule impose?
Correct Answer
A) That confidential information remains protected
Why this is correct: The Ethics Rule's confidentiality requirement is not tied to the physical location of files. The core duty is to protect client information from unauthorized access. Using a cloud service is permissible, but the appraiser must take reasonable steps to ensure the service provides adequate security for the confidential data, as stated in the original explanation. Why the other choices are wrong: The rule does not require the provider be located in the same state. It does not mandate that the client approve the specific provider in writing. It also does not require retaining paper duplicates alongside electronic files; workfiles can be stored electronically. Exam tip: Remember, the duty of confidentiality is about protecting the information itself, not the medium or location where it is stored.
Why This Is the Correct Answer
Why this is correct: The Ethics Rule's confidentiality requirement is not tied to the physical location of files. The core duty is to protect client information from unauthorized access. Using a cloud service is permissible, but the appraiser must take reasonable steps to ensure the service provides adequate security for the confidential data, as stated in the original explanation. Why the other choices are wrong: The rule does not require the provider be located in the same state. It does not mandate that the client approve the specific provider in writing. It also does not require retaining paper duplicates alongside electronic files; workfiles can be stored electronically. Exam tip: Remember, the duty of confidentiality is about protecting the information itself, not the medium or location where it is stored.
More emerging-appraisal-methods Questions
An appraiser consults a geographic information system for parcel boundaries. What limitation applies?
How does an alternative inspection method affect the appraiser's disclosure obligations?
A collector's photographs show a condition the appraiser believes needs specialist assessment. What is the appropriate step?
What responsibility does an appraiser retain for an error originating in a third-party database?
Under current USPAP guidance, what is the output of an automated valuation model before an appraiser analyzes it?
A lender's guidelines require an interior inspection, but the client asks for a desktop product to save time. What should the appraiser do?
How should an appraiser respond to a client requesting a shorter turn time than credible results allow?
Which assignment type still requires the appraiser to develop an opinion of value?
An appraiser relies on a published capitalization rate survey. What must be considered?
A model returns an estimate far from the appraiser's own conclusion. What is the appropriate response?
People Also Study
Valuation Principles & Procedures
25% of exam
Property Description & Analysis
20% of exam
Market Analysis & Highest/Best Use
15% of exam
Appraisal Math & Statistics
15% of exam
USPAP (Ethics & Standards)
15% of exam