Losing a workfile before the retention period expires exposes the appraiser to discipline even if the appraisal itself was flawless, because:
Correct Answer
A) Retention is itself an enforceable duty, and the file is the proof of compliance
Why this is correct: The Record Keeping Rule is a separate, enforceable duty under USPAP. The workfile is the primary evidence that the appraisal was developed competently and ethically. Losing it before the mandatory retention period ends is a violation in itself, regardless of the quality of the original work, because compliance cannot be proven. Why the other choices are wrong: The state does not re-appraise every property annually. Lost files do not transfer liability to the client; the appraiser remains responsible. USPAP does not presume a lost file contained errors; the violation is the failure to retain the required records. Exam tip: Remember that record retention is a standalone requirement. A perfect appraisal with a missing workfile is still a compliance failure.
Why This Is the Correct Answer
Why this is correct: The Record Keeping Rule is a separate, enforceable duty under USPAP. The workfile is the primary evidence that the appraisal was developed competently and ethically. Losing it before the mandatory retention period ends is a violation in itself, regardless of the quality of the original work, because compliance cannot be proven. Why the other choices are wrong: The state does not re-appraise every property annually. Lost files do not transfer liability to the client; the appraiser remains responsible. USPAP does not presume a lost file contained errors; the violation is the failure to retain the required records. Exam tip: Remember that record retention is a standalone requirement. A perfect appraisal with a missing workfile is still a compliance failure.
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:
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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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