Before accepting an assignment, what must an appraiser disclose about prior services on the subject property?
Correct Answer
D) Any services on that property in the prior three years
Why this is correct: USPAP's Ethics Rule requires disclosure of any services performed on the subject property in the prior three years before accepting an assignment, to assess independence. Why the other choices are wrong: "Any inspection carried out in the last twelve months" is too narrow; the rule covers three years. "Any services performed for the current lender only" is incorrect; it applies to all prior services. "Any valuation prepared for a government agency" is too specific; the rule covers any service. Exam tip: Disclose prior services within three years before acceptance; it's an independence safeguard.
Why This Is the Correct Answer
Option D captures the three elements of the rule: any service, on that property, within the prior three years. Breadth matters, because a prior brokerage listing, a consulting engagement, or a tax appeal opinion counts just as an appraisal would. Timing matters too, since the disclosure must come before acceptance so it can inform the decision to engage rather than surface after the work is delivered.
Why the Other Options Are Wrong
Option A: Any inspection carried out in the last twelve months
A twelve-month window is shorter than the rule requires and would let a two-year-old appraisal go unmentioned. Limiting the disclosure to inspections is narrower still, since the concern is any prior service that could color judgment, not just physical visits. Two errors in one option.
Option B: Any services performed for the current lender only
The disclosure runs to the current client about services on the property, regardless of who those earlier services were performed for. A prior assignment for a different lender, a seller, or an owner poses the same anchoring risk. Filtering by the identity of the earlier client would gut the safeguard.
Option C: Any valuation prepared for a government agency
Government work is not a special category here; any prior service qualifies. Singling out agency valuations would exclude the far more common situations, such as a prior lender appraisal or a listing. The option tests whether a candidate will accept an arbitrary narrowing of a broad rule.
Three Years, Any Role
Two dials to set. The clock is three years back from acceptance, and the role is any role, appraiser or otherwise. Say it out loud as three and any before answering.
How to use: When a stem asks about prior involvement, check the window and the breadth in each option. Anything shorter than three years or narrower than any service is wrong.
Exam Tip
Disclosure items usually turn on timing. Confirm the option requires the disclosure before acceptance rather than in the report or on request.
Common Mistakes to Avoid
- -Limiting the lookback to appraisal work and ignoring brokerage or consulting roles
- -Disclosing after the assignment is underway instead of before acceptance
- -Assuming disclosure alone cures a genuine inability to remain impartial
Concept Deep Dive
Analysis
The ETHICS RULE protects independence at the moment of engagement, before the appraiser is financially and psychologically invested in an assignment. Prior involvement with the same property can compromise objectivity in either direction: an appraiser who valued it last year may anchor to that number, and one who acted as a broker, consultant, or property manager may have relationships and expectations attached. The rule therefore requires the appraiser to disclose to the client, before accepting the assignment, any services performed on that property within the three years preceding acceptance, in any capacity and not merely as an appraiser. Disclosure is the remedy rather than disqualification: with the facts on the table, the client decides whether to proceed, and the appraiser must still be able to remain impartial.
Background Knowledge
You need the ETHICS RULE's conduct requirements, including the prior services disclosure with its three-year lookback and its pre-acceptance timing. You should also know that acceptance of an assignment still requires the appraiser to be able to perform impartially, and that some client or agency policies impose additional restrictions.
Real-World Application
An appraiser asked to value a warehouse recalls listing it for a prior owner two years earlier, tells the prospective client before accepting, and documents the disclosure and the client's decision to proceed in the workfile.
More USPAP Questions
Reconciliation of the approaches to value is best described as which activity?
Why should the reconciliation address the quantity of evidence as well as its quality?
How long must a report be retained compared with the workfile?
What distinguishes an appraisal review from an appraisal?
An appraiser reconciles to a value at the top of the indicated range because the client needs that figure. What has occurred?
What does it mean that a value opinion must be reasonable rather than merely arithmetically derived?
What should the reconciliation section explain to the reader?
How do the content obligations of the two report options differ with respect to the information analyzed?
The three approaches indicate $480,000, $495,000 and $610,000. What should the appraiser do first?
Three approaches indicate $1.02 million, $1.05 million and $1.04 million. How should this be reported?
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