Which information meets the USPAP definition of confidential information?
Correct Answer
B) Client-marked nonpublic data, or data protected by law
The definition includes information identified by the client as confidential when provided and unavailable from another source, and information classified confidential or private by applicable law or regulation. Assignment results are separately protected under the ETHICS RULE and should not be collapsed into this definition. A public fact does not become confidential solely because it appears in a report or workfile.
Why This Is the Correct Answer
Option B is correct because it matches the two branches of the definition: nonpublic data the client identifies as confidential, and information classified as confidential or private by applicable law or regulation. Assignment results are protected separately under the ETHICS RULE. Public facts do not become confidential just because they are stored in a workfile.
Why the Other Options Are Wrong
Option A: Public property facts, because they now appear in the workfile
Option A, public property facts that now appear in the workfile, is wrong because information available from other sources does not become confidential by being placed in a workfile or report.
Option C: A document that a state board has formally marked as secret
Option C, a document a state board has formally marked as secret, does not match the definition. Confidentiality turns on client identification of nonpublic data or classification by applicable law or regulation, not on a board stamp by itself.
Option D: The appraiser’s final value opinion, and nothing else
Option D, the appraiser's final value opinion and nothing else, confuses confidential information with assignment results. Assignment results are protected separately under the ETHICS RULE, and the definition of confidential information covers other material.
Client says or law says
Confidential information comes from two doors: the client says it is confidential and it is not available elsewhere, or the law says so.
How to use: Use this to test any answer choice that claims something is confidential information.
Exam Tip
Keep confidential information and assignment results as two separate categories when reading confidentiality questions.
Common Mistakes to Avoid
- -Treating public records as confidential because they are in the workfile
- -Equating confidential information with assignment results
- -Forgetting the law-or-regulation branch of the definition
Concept Deep Dive
Analysis
This question tests the two-part USPAP definition of confidential information. Information qualifies if the client identifies it as confidential when providing it and it is not available from another source, or if law or regulation classifies it as confidential or private. The best answer captures both branches.
Background Knowledge
USPAP's Confidentiality section of the ETHICS RULE restricts disclosure of both confidential information and assignment results. Confidential information is defined narrowly: data the client identifies as confidential that is not available elsewhere, or data that law or regulation classifies as confidential or private. Assignment results are a separate protected category.
Real-World Application
A client gives an appraiser internal rent rolls marked confidential that are not published anywhere. The appraiser treats them as confidential information, while the property's public deed and tax records in the same workfile remain public facts.
More USPAP Questions
Under USPAP, what are assignment results?
The certification required by Standards Rule 2-3 must be signed by:
Under 2024 USPAP, which statement correctly combines the requirements for an oral real property appraisal report and its workfile?
An appraiser accepts an assignment involving a property type the appraiser has valued once before, years ago. Competency requires:
A Certified General appraiser is asked to value a specialized industrial property for the first time. The appraiser knows a competency gap exists before agreeing to the assignment. What is required if the appraiser proceeds?
Under 2024 USPAP Standard 1, which listed assignment element must be identified in developing a real property appraisal?
An appraiser provided an appraisal of the same property for another client 18 months ago. No confidentiality obligation prevents disclosing the fact of that service. Before agreeing to a new assignment, the appraiser must:
According to USPAP, what is the primary purpose of the Ethics Rule?
An appraiser is asked to determine 'fair market value' for an assignment. According to USPAP, the appraiser should:
Which list gives the sections of the 2024 USPAP Ethics Rule?
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