USPAP USPAP Record Keeping Rule 1 — Questions and Answers
Question 1: Under USPAP's Record Keeping Rule, what is the minimum retention period for an appraisal workfile?
- 3 years after preparation or 1 year after final judicial disposition, whichever is later
- 5 years after preparation or 2 years after final judicial disposition, whichever is later (Correct answer)
- 7 years after preparation or 3 years after final judicial disposition, whichever is later
- 2 years after preparation or 1 year after final judicial disposition, whichever is later
Correct answer: 5 years after preparation or 2 years after final judicial disposition, whichever is later
USPAP's Record Keeping Rule requires appraisers to retain workfiles for at least 5 years after preparation or at least 2 years after final disposition of any judicial proceeding, whichever period expires last.
Question 2: Which of the following must be included in an appraiser's workfile under the USPAP Record Keeping Rule?
- The name of the client and all intended users (Correct answer)
- The appraiser's personal financial statements
- A list of all appraisals completed in the same year
- Proof of the appraiser's state licensing renewal
Correct answer: The name of the client and all intended users
The Record Keeping Rule requires the workfile to identify the client and all intended users so the assignment context can be established upon later review.
Question 3: Under USPAP, are electronic records acceptable as workfile documentation?
- No, all workfile documents must be in paper form
- Only if approved by the state appraisal board in advance
- Yes, electronic records constitute acceptable true copies (Correct answer)
- Only for residential appraisals, not commercial
Correct answer: Yes, electronic records constitute acceptable true copies
USPAP allows electronic records to serve as true copies and fulfill workfile retention requirements, provided the records are retrievable.
Question 4: When does the 5-year retention period under USPAP's Record Keeping Rule begin?
- The date the appraisal report is delivered to the client
- The date the assignment is accepted
- The date of preparation of the workfile (Correct answer)
- The date payment is received from the client
Correct answer: The date of preparation of the workfile
The 5-year clock begins on the date of preparation of the workfile, not delivery or payment.
Question 5: Who must the appraiser make the workfile available to under the Record Keeping Rule?
- Only the original client who commissioned the appraisal
- Any member of the general public upon written request
- Duly authorized professional peer review committees and judicial or quasi-judicial bodies (Correct answer)
- Only federal banking regulators
Correct answer: Duly authorized professional peer review committees and judicial or quasi-judicial bodies
USPAP requires appraisers to make workfiles available to duly authorized peer review committees and judicial or quasi-judicial bodies with proper authority.
Question 6: What must the workfile contain regarding the appraisal report itself?
- Only the cover page and summary section of the report
- A true copy of the appraisal report transmitted to the client (Correct answer)
- A draft version of the report before revisions
- The client's signed acknowledgment of receipt
Correct answer: A true copy of the appraisal report transmitted to the client
The Record Keeping Rule requires the workfile to contain a true copy of the written appraisal report as transmitted to the client.
Question 7: What data must be retained in the appraiser's workfile beyond the written report?
- Only the appraisal report and the signed certification
- All data, information, and documentation necessary to support the appraiser's opinions and conclusions (Correct answer)
- Only data supplied by the client
- Market data obtained exclusively from MLS sources
Correct answer: All data, information, and documentation necessary to support the appraiser's opinions and conclusions
USPAP requires the workfile to contain all data, information, and documentation necessary to support the appraiser's opinions and conclusions, not just the final report.
USPAP USPAP Record Keeping Rule 1
Under USPAP's Record Keeping Rule, what is the minimum retention period for an appraisal workfile?