How long must a workfile be retained under the Record Keeping Rule?
Correct Answer
A) At least five years, or two years after final court disposition, whichever expires last
Why this is correct: The Record Keeping Rule (USPAP) mandates a workfile be retained for at least five years after preparation or for at least two years after final disposition of any judicial proceeding where the appraiser provided testimony, whichever period expires last. Why the other choices are wrong: 'Exactly three years from the date the signed report was first delivered to the client' is incorrect; the minimum is five years. 'Until the loan securing the appraisal is repaid' is not a USPAP requirement. 'One year, unless the client requests longer' is too short and not based on the rule. Exam tip: Remember the '5 years or 2 years after court' rule. Litigation extends the clock.
Why This Is the Correct Answer
Why this is correct: The Record Keeping Rule (USPAP) mandates a workfile be retained for at least five years after preparation or for at least two years after final disposition of any judicial proceeding where the appraiser provided testimony, whichever period expires last. Why the other choices are wrong: 'Exactly three years from the date the signed report was first delivered to the client' is incorrect; the minimum is five years. 'Until the loan securing the appraisal is repaid' is not a USPAP requirement. 'One year, unless the client requests longer' is too short and not based on the rule. Exam tip: Remember the '5 years or 2 years after court' rule. Litigation extends the clock.
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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