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 statement best defines a hypothetical condition under USPAP?
According to the Competency Rule, if an appraiser lacks the knowledge and experience to complete an assignment competently, which action is NOT acceptable?
An appraiser runs only the sales comparison approach on a standard tract home and omits the cost and income approaches. Under Standard 1 this is:
A value opinion for a subdivision as if fully built out two years from now is what kind of assignment, and what does it require?
A hypothetical condition differs from an extraordinary assumption in that a hypothetical condition:
An appraiser must disclose in the certification whether they have:
A client-imposed requirement — 'use only comps from our approved list' — is best described as:
Under Standard 1, when developing a real property appraisal, an appraiser must:
The certification required by Standards Rule 2-3 must be signed by:
According to Standard 1, when developing an opinion of market value, an appraiser must analyze:
People Also Study
Real Estate Market
13.6% of exam
Property Description
11.8% of exam
Land or Site Valuation
4.5% of exam
Sales Comparison Approach
16.4% of exam
Cost Approach
13.6% of exam