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
Why this is correct: USPAP's Standard 2-3 mandates disclosure of *any* services performed regarding the subject property within the prior three years, regardless of the service type (e.g., appraisal, consulting, feasibility study). This ensures transparency about any prior involvement. Why the other choices are wrong: 'Only if the prior services were appraisal services' is wrong; the rule applies to all services. 'Only if the client requests this information' is wrong; disclosure is mandatory, not request-based. 'Only if the prior services resulted in a different value conclusion' is wrong; disclosure is required irrespective of the prior conclusion. Exam tip: Remember the '3-year rule' for prior services: any service, any type, must be disclosed.
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 client requests this information
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 prior services resulted in a different value conclusion
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
Which statement best defines a hypothetical condition under USPAP?
According to the Competency Rule, if an appraiser lacks the knowledge and experience to complete an assignment competently, which action is NOT acceptable?
An appraiser runs only the sales comparison approach on a standard tract home and omits the cost and income approaches. Under Standard 1 this is:
A value opinion for a subdivision as if fully built out two years from now is what kind of assignment, and what does it require?
A hypothetical condition differs from an extraordinary assumption in that a hypothetical condition:
An appraiser must disclose in the certification whether they have:
A client-imposed requirement — 'use only comps from our approved list' — is best described as:
Under Standard 1, when developing a real property appraisal, an appraiser must:
The certification required by Standards Rule 2-3 must be signed by:
According to Standard 1, when developing an opinion of market value, an appraiser must analyze:
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