When must an appraiser disclose that they have performed services regarding the subject property within the three-year period immediately preceding acceptance of the assignment?
Correct Answer
C) For any services performed regarding the subject property, regardless of type
Standard 2-3 requires disclosure of any services performed by the appraiser regarding the subject property within the three-year period immediately preceding acceptance of the assignment, regardless of whether those services were appraisal-related or not.
Why This Is the Correct Answer
Option C is correct because USPAP Standard 2-3 explicitly requires disclosure of ANY services performed regarding the subject property within the three-year period, regardless of the type of service. This includes non-appraisal services such as consulting, property management, brokerage, or any other professional services. The standard does not distinguish between appraisal and non-appraisal services - all prior involvement must be disclosed. This comprehensive disclosure requirement ensures complete transparency and allows clients to make informed decisions about potential conflicts of interest.
Why the Other Options Are Wrong
Option A: Only if the prior services were appraisal services
Option A is incorrect because it limits disclosure to only appraisal services, which is too narrow. Standard 2-3 requires disclosure of ANY services, including non-appraisal services like consulting, brokerage, property management, or other professional services related to the subject property.
Option B: Only if the prior services resulted in a different value conclusion
Option B is incorrect because disclosure is required regardless of whether prior services resulted in different value conclusions. The requirement is based on the fact that services were performed, not on the outcomes or conclusions of those services.
Option D: Only if the client requests this information
Option D is incorrect because disclosure is mandatory under Standard 2-3, not optional based on client requests. The appraiser must proactively disclose prior services regardless of whether the client asks for this information.
ANY-3 Rule
Remember 'ANY-3': ANY services within 3 years must be disclosed. Think of it as 'Any service, Any time in 3 years = Always disclose'
How to use: When you see disclosure questions, immediately think 'ANY-3' - if it involves any service within 3 years of the subject property, disclosure is required regardless of service type or outcome
Exam Tip
Look for answer choices that try to limit disclosure requirements - USPAP Standard 2-3 is comprehensive and requires disclosure of ALL prior services, not just appraisal services
Common Mistakes to Avoid
- -Thinking only appraisal services need disclosure
- -Believing disclosure is optional or client-dependent
- -Forgetting the three-year timeframe requirement
Concept Deep Dive
Analysis
This question tests knowledge of USPAP Standard 2-3 disclosure requirements, which mandate transparency about prior appraiser involvement with subject properties. The standard requires comprehensive disclosure of ANY services performed by the appraiser regarding the subject property within three years, not just appraisal services. This broad disclosure requirement ensures clients and intended users have complete information about potential conflicts of interest or prior knowledge that could influence the current assignment. The three-year lookback period is specifically defined and non-negotiable, emphasizing the importance of maintaining professional objectivity and transparency.
Background Knowledge
USPAP Standard 2-3 establishes mandatory disclosure requirements for appraisers to maintain transparency and professional integrity. The three-year lookback period is specifically defined in the standard and applies to all types of services, not just appraisal work.
Real-World Application
An appraiser who provided property management services for a commercial building two years ago must disclose this when later hired to appraise the same building, even though property management is not an appraisal service
More USPAP Questions
An extraordinary assumption must be:
Under the USPAP Competency Rule, which of the following is required before an appraiser may accept an assignment?
An appraiser is developing an appraisal for a bank loan and discovers that the property has environmental contamination that significantly affects value, but the lender specifically requests that this issue not be mentioned in the report. According to USPAP, the appraiser should:
A Summary Appraisal Report must contain enough information to:
According to USPAP's Ethics Rule, an appraiser must keep confidential information about the client and intended users confidential unless disclosure is required by:
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