Under USPAP's Ethics Rule, which of the following best describes the appraiser's obligation regarding confidentiality?
Correct Answer
D) Keep results confidential except to recipients USPAP expressly permits
The Ethics Rule restricts disclosure of confidential information and assignment results. Permitted recipients include the client, parties specifically authorized by the client, state appraiser regulatory agencies, persons authorized through due process of law, and a duly authorized appraisal peer review committee. The obligation does not expire automatically after five years.
Why This Is the Correct Answer
Option D is correct because the Ethics Rule bars disclosure of confidential information and assignment results to anyone other than the listed recipients. Those recipients are the client, parties specifically authorized by the client, state appraiser regulatory agencies, third parties authorized by due process of law, and a duly authorized professional peer review committee.
Why the Other Options Are Wrong
Option A: Share assignment results freely as examples in marketing material
Option A, sharing assignment results freely as examples in marketing material, discloses results to people who are not on USPAP's permitted list, so it violates the Confidentiality section.
Option B: Confidentiality ends five years after the report date
Option B claims confidentiality ends five years after the report date, but the rule sets no such expiration; the obligation does not end automatically after five years.
Option C: Share assignment results with any appraiser for training purposes
Option C, sharing assignment results with any appraiser for training purposes, is wrong because other appraisers are not a permitted recipient unless, for example, the client specifically authorizes them or they act as a duly authorized peer review committee.
Five doors out only
Think of five doors through which results may leave: the client, client-authorized parties, the state board, due process of law, and a peer review committee. Anyone else is outside the doors.
How to use: Use the five doors to test whether a proposed recipient of assignment results is permitted.
Exam Tip
Choose the answer that limits disclosure to USPAP's permitted recipients; options that add a time limit or a broad group such as marketing audiences or other appraisers are not the rule.
Common Mistakes to Avoid
- -Believing confidentiality expires after a set number of years
- -Using client reports as marketing samples without authorization
- -Assuming any fellow appraiser may receive assignment results for training
Concept Deep Dive
Analysis
This question tests the Confidentiality section of the Ethics Rule. You need to know that confidential information and assignment results may be disclosed only to a defined list of recipients. Any option that allows broader sharing or sets an expiration date conflicts with that list.
Background Knowledge
USPAP protects both confidential information received from the client and the assignment results themselves. Disclosure is limited to the client, parties the client specifically authorizes, state appraiser regulatory agencies, parties authorized by due process of law, and a duly authorized professional peer review committee.
Real-World Application
A colleague asks to see a recent appraisal report to learn how to handle a complex property. Without the client's specific authorization, the appraiser declines to share the assignment results.
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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