A client requests that its identity be withheld from the appraisal report. What treatment is permitted under USPAP’s applicable written-report provisions?
Correct Answer
D) State it is withheld at the client’s request; keep it in the workfile
USPAP permits the specified client-anonymity treatment: the appraiser still identifies and documents the actual client in the workfile, while the report states that the identity was withheld at the client’s request and retained in the workfile. This does not eliminate intended-user identification, credible development or other report requirements. Check any additional law or program requirements that may require disclosure.
Why This Is the Correct Answer
Option D is correct because USPAP permits the report to state that the client's identity is withheld at the client's request but is retained in the appraiser's workfile. The appraiser still identifies the actual client and documents it in the workfile, and other report requirements, such as intended-user identification, still apply.
Why the Other Options Are Wrong
Option A: Record the client’s identity nowhere, including the workfile
Option A, recording the client's identity nowhere including the workfile, is wrong because the identity must be retained in the workfile even when withheld from the report.
Option B: Omit the client from the report and treat the client as a non-user
Option B, omitting the client from the report and treating the client as a non-user, is wrong because the client remains an intended user; anonymity only changes how the identity appears in the report.
Option C: Treat the anonymity request as waiving the report’s other duties
Option C, treating the anonymity request as waiving the report's other duties, is wrong because the request affects only the client's identification; all other development and reporting requirements still apply.
Hidden in report, kept in file
An anonymous client is hidden in the report but kept in the file.
How to use: Use this to choose the option that withholds the name from the report while keeping it in the workfile.
Exam Tip
Anonymity changes only how the client is named in the report; it does not remove the client from intended users or waive other requirements.
Common Mistakes to Avoid
- -Leaving the client's identity out of the workfile
- -Treating an anonymous client as not an intended user
- -Assuming anonymity relaxes other reporting requirements
Concept Deep Dive
Analysis
This question tests USPAP's client-anonymity treatment in written reports. When a client asks for anonymity, the report states that the identity is withheld at the client's request and retained in the workfile. The client is still identified and documented, and other report duties remain.
Background Knowledge
USPAP requires reports to identify the client and other intended users, with a specific exception allowing the client's name to be withheld on request. The client remains an intended user, and some laws or programs may still require the identity to be disclosed.
Real-World Application
A company exploring a quiet acquisition asks that its name not appear in the appraisal. The appraiser writes that the client's identity is withheld at the client's request and retained in the workfile, and keeps the engagement letter naming the client in the file.
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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