What must be disclosed when an appraiser relies on a prior report they prepared on the same property?
Correct Answer
A) That prior service, since it precedes acceptance
Why this is correct: USPAP's Ethics Rule requires disclosure of any previous service on the subject property within the prior three years to the client before acceptance. This allows the client to assess potential issues like appraiser bias or expectation of consistency. Why the other choices are wrong: Nothing, as it was the appraiser's own earlier work is incorrect; disclosure is required. Only the fee charged is not the required disclosure. The identity of the prior client is not the primary disclosure; the fact of prior service is. Exam tip: Remember the 3-year look-back for disclosing prior service on the subject property.
Why This Is the Correct Answer
Why this is correct: USPAP's Ethics Rule requires disclosure of any previous service on the subject property within the prior three years to the client before acceptance. This allows the client to assess potential issues like appraiser bias or expectation of consistency. Why the other choices are wrong: Nothing, as it was the appraiser's own earlier work is incorrect; disclosure is required. Only the fee charged is not the required disclosure. The identity of the prior client is not the primary disclosure; the fact of prior service is. Exam tip: Remember the 3-year look-back for disclosing prior service on the subject property.
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