USPAP USPAP Record Keeping Rule 2 — Questions and Answers
Question 1: If an appraisal becomes involved in judicial proceedings, how does this affect the workfile retention period under USPAP?
- The standard 5-year period applies regardless of litigation
- The workfile may be destroyed once litigation begins
- The workfile must be retained for at least 2 years after final disposition of the judicial proceeding, even if the 5-year period has passed (Correct answer)
- The workfile must be surrendered to the court immediately
Correct answer: The workfile must be retained for at least 2 years after final disposition of the judicial proceeding, even if the 5-year period has passed
If judicial proceedings occur, USPAP extends the retention period to at least 2 years after the final judicial disposition, overriding the standard 5-year rule if it would expire sooner.
Question 2: Under USPAP, what qualifies as a 'true copy' of an appraisal report for workfile retention purposes?
- Only a notarized original signed by both the appraiser and client
- A copy that is identical in content to the report transmitted to the client, including electronic copies (Correct answer)
- A condensed summary of the report's key conclusions
- A photocopy bearing a raised seal from the state appraisal board
Correct answer: A copy that is identical in content to the report transmitted to the client, including electronic copies
A true copy is a copy that is identical in content to the report transmitted to the client, and USPAP explicitly allows electronic copies to satisfy this requirement.
Question 3: When an appraiser provides an oral appraisal, what does USPAP's Record Keeping Rule require?
- No workfile is required for oral appraisals
- A full written report must be prepared within 30 days of the oral delivery
- A summary of the oral report or testimony must be retained in the workfile (Correct answer)
- The client must provide written confirmation of the oral appraisal
Correct answer: A summary of the oral report or testimony must be retained in the workfile
For oral appraisals, USPAP requires that a summary of the oral report or testimony be included in the workfile to document what was communicated.
Question 4: Who bears primary responsibility for maintaining the workfile under USPAP's Record Keeping Rule?
- The client who commissioned the appraisal
- The supervising appraiser only
- The appraiser who performed the assignment (Correct answer)
- The state appraisal board
Correct answer: The appraiser who performed the assignment
The appraiser who performed the assignment is responsible for retaining and maintaining the workfile under USPAP's Record Keeping Rule.
Question 5: Which statement about workfile contents is consistent with USPAP's Record Keeping Rule?
- The workfile may consist solely of the final appraisal report
- The workfile must include supporting data even if not referenced in the report (Correct answer)
- Only data directly quoted in the report needs to be retained
- Photographs need not be retained if described in the report
Correct answer: The workfile must include supporting data even if not referenced in the report
The workfile must contain all data, information, and documentation necessary to support conclusions, which may include supporting materials not explicitly cited in the final report.
Question 6: Under USPAP, must an appraiser retain the workfile even if the client never paid for the appraisal?
- No, payment triggers the retention obligation
- Yes, retention is required regardless of whether payment was received (Correct answer)
- Only if the report was delivered to the client
- Only if the assignment involved federally related transactions
Correct answer: Yes, retention is required regardless of whether payment was received
USPAP's Record Keeping Rule requires workfile retention based on assignment completion, not on whether payment was received from the client.
Question 7: A signed certification must appear in the workfile under the USPAP Record Keeping Rule. What does this require?
- A copy of the signed certification as it appears in the transmitted report (Correct answer)
- A separate certification notarized by a third party
- Only the appraiser's license number and expiration date
- Client countersignature on the certification
Correct answer: A copy of the signed certification as it appears in the transmitted report
The workfile must contain a copy of the signed certification as it appears in the report transmitted to the client, documenting the appraiser's representations.
USPAP USPAP Record Keeping Rule 2
If an appraisal becomes involved in judicial proceedings, how does this affect the workfile retention period under USPAP?