USPAP Practice Exam 2025 – Comprehensive Test Prep

Confidential information can be legally disclosed to a duly authorized professional peer review committee because such committees are explicitly recognized within the context of professional standards to ensure that appraisers maintain quality and ethical practices in their work. Peer review committees are established to review the work of appraisers for compliance with applicable guidelines and standards.

This type of disclosure is permissible because these committees are typically made up of professionals who understand the importance of confidentiality and are sworn to uphold the ethical standards of the profession. This ensures that information is handled in a secure manner, maintaining the integrity of the appraisal process.

In contrast, the other options do not provide the appropriate legal basis for disclosing confidential information. For example, disclosing to any person who requests it lacks the necessary safeguards and does not align with the principles of confidentiality that appraisers must adhere to. Similarly, revealing information to state appraisal agencies or any third parties without proper authority or due process could violate confidentiality agreements. Lastly, while sharing information with other appraisers may be relevant in some contexts, it is not universally permissible unless all parties involved are accounted for, and confidentiality agreements are observed.