When must the appraisal workfile exist?
Correct Answer
A) Before any report is issued; oral summaries are added soon after
A workfile must exist before communicating assignment results. A written summary of an oral report is added within a reasonable time after delivery. Retention and true-copy requirements remain separate obligations; a client’s retained copy alone does not satisfy the appraiser’s duties.
Why This Is the Correct Answer
Option A is correct because USPAP states that a workfile must be in existence prior to the issuance of any report or other communication of assignment results. A written summary of an oral report must be added to the workfile within a reasonable time after the oral report is issued, which matches the option.
Why the Other Options Are Wrong
Option B: After the client has paid the fee for the assignment
Option B is wrong because the workfile requirement is not tied to when the client pays the fee. The workfile must exist before results are communicated.
Option C: When a restricted report is the option chosen, and not otherwise
Option C is wrong because a workfile is required for every assignment, not only when a restricted report is chosen. The report option does not change whether a workfile must exist.
Option D: When a state regulator later requests to see the appraiser’s file
Option D is wrong because the workfile must exist before results are communicated, not only when a state regulator later requests the file. Creating it after a request would not meet the timing requirement.
File first, then report
The workfile comes before any report goes out; only the oral-report summary is added afterward.
How to use: Use this to answer workfile timing questions.
Exam Tip
Distractors tie the workfile to payment, report type or regulator requests; the trigger is communicating results.
Common Mistakes to Avoid
- -Building the workfile only after a complaint or regulator request
- -Thinking only restricted reports need a workfile
- -Forgetting the written summary for oral reports
Concept Deep Dive
Analysis
This question tests the timing requirement of the Record Keeping Rule. A workfile must exist before any report or other communication of assignment results is issued. For oral reports, a written summary is added within a reasonable time after the oral report.
Background Knowledge
The Record Keeping Rule requires a workfile for each assignment, with the data, information and documentation needed to support the appraiser's opinions and show USPAP compliance. It also sets retention and access duties. A client's retained copy alone does not satisfy the appraiser's obligations.
Real-World Application
An attorney asks an appraiser for a quick oral value opinion in a settlement meeting. The appraiser has already assembled the workfile with data and analysis before speaking. Within a reasonable time afterward, the appraiser adds a written summary of the oral report to that workfile.
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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