Under USPAP’s Ethics Rule, what must an appraiser protect from unauthorized disclosure?
Correct Answer
B) Confidential information and assignment results, subject to USPAP exceptions
Protect confidential information and assignment results and disclose them only as USPAP permits, including authorized recipients and specified legal or regulatory exceptions. Public records are not automatically confidential merely because they are used in an assignment.
Why This Is the Correct Answer
Option B is correct because the Ethics Rule prohibits disclosing confidential information or assignment results to anyone other than parties USPAP permits, and requires reasonable steps to safeguard them from unauthorized access. These protections are subject to USPAP exceptions such as authorized recipients and specified legal or regulatory parties.
Why the Other Options Are Wrong
Option A: The final value number, but not the supporting analysis or data
Option A protects the final value number but not the supporting analysis or data. Assignment results include the appraiser's opinions and conclusions developed in the assignment, not only the final figure.
Option C: Documents visibly marked confidential, but not unmarked assignment results
Option C protects only documents visibly marked confidential, not unmarked assignment results. Assignment results are protected whether or not they carry a confidentiality label.
Option D: Public records, such as deeds, found during the assignment
Option D says to protect public records, such as deeds, found during the assignment. Public records are not confidential merely because the appraiser used them in an assignment.
Protect information and results
Two things go in the confidentiality vault: confidential information and assignment results. Public records stay outside it.
How to use: Use this to identify what the Ethics Rule's confidentiality section protects.
Exam Tip
Assignment results are protected even without a confidential label; check options that narrow protection to marked documents or the final number.
Common Mistakes to Avoid
- -Thinking only the final value is confidential
- -Treating public records as confidential once used in an assignment
- -Protecting only documents marked confidential
Concept Deep Dive
Analysis
This question tests the confidentiality section of the Ethics Rule. The appraiser must protect confidential information and assignment results from unauthorized disclosure, subject to USPAP's listed exceptions. The duty is not limited to the final number or to documents marked confidential, and it does not extend to public records just because they were used.
Background Knowledge
USPAP distinguishes confidential information, which is identified by the client as confidential or classified as such by law, from assignment results, which are the appraiser's opinions and conclusions in an assignment. Both are protected from unauthorized disclosure, with exceptions for the client, parties authorized by the client, state appraiser regulatory agencies, third parties authorized by law, and peer review committees. Safeguards apply to physical and electronic records.
Real-World Application
A neighbor asks an appraiser what value was reached for the house down the street. The appraiser declines because the assignment results may be disclosed only to the client and other parties USPAP permits.
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