During an appraisal, the appraiser discovers the borrower is a public figure. A reporter calls asking to confirm 'anything interesting.' The appraiser may say:
Correct Answer
A) Only that no comment can be made, absent client authorization or legal process
This question tests the appraiser's duty of confidentiality under USPAP's Ethics Rule, which protects all confidential assignment information and results, regardless of the client's public status. Why this is correct: The correct choice, 'Only that no comment can be made, absent client authorization or legal process,' is mandated by the confidentiality obligation. An appraiser must not disclose confidential information or assignment results without the client's permission or a legal requirement (e.g., a subpoena). The client's fame does not waive this duty. Why the other choices are wrong: Disclosing 'General impressions of the house, since opinions are not data' is wrong because confidential information includes opinions and analyses formed during the assignment. Sharing 'Anything already visible from the street' is wrong because the duty extends beyond physical observations to include all assignment-specific information. Revealing 'The final value figure only, since it will appear in the public records anyway' is wrong because the appraiser's duty exists independently of future public recording; the appraiser is not the source for that disclosure. Exam tip: Remember that confidentiality in appraisal is absolute unless the client authorizes disclosure or the law compels it. The public status of a property or client is irrelevant.
Why This Is the Correct Answer
This question tests the appraiser's duty of confidentiality under USPAP's Ethics Rule, which protects all confidential assignment information and results, regardless of the client's public status. Why this is correct: The correct choice, 'Only that no comment can be made, absent client authorization or legal process,' is mandated by the confidentiality obligation. An appraiser must not disclose confidential information or assignment results without the client's permission or a legal requirement (e.g., a subpoena). The client's fame does not waive this duty. Why the other choices are wrong: Disclosing 'General impressions of the house, since opinions are not data' is wrong because confidential information includes opinions and analyses formed during the assignment. Sharing 'Anything already visible from the street' is wrong because the duty extends beyond physical observations to include all assignment-specific information. Revealing 'The final value figure only, since it will appear in the public records anyway' is wrong because the appraiser's duty exists independently of future public recording; the appraiser is not the source for that disclosure. Exam tip: Remember that confidentiality in appraisal is absolute unless the client authorizes disclosure or the law compels it. The public status of a property or client is irrelevant.
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 β 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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