Uniform Standards of Professional Appraisal Practice (USPAP) Practice Exam

In absence of an agreement with the client, what information may an appraiser disclose to a third party?

1. Detailed valuation methods used

2. Confirmation that the appraisal was conducted

3. Client's specific instructions

4. The final value estimate provided to the client

The correct answer is: Confirmation that the appraisal was conducted

In the absence of an agreement with the client, an appraiser may disclose confirmation that the appraisal was conducted because this information does not compromise the confidentiality of the client or the specifics of the appraisal. Confirming that an appraisal took place does not provide any sensitive details regarding the client’s identity, specific instructions, or the methods used to arrive at a value. This kind of information is typically considered permissible to disclose, as it is general in nature and does not breach any confidentiality obligations inherent in the appraiser-client relationship. On the other hand, sharing detailed valuation methods or the final value estimate would involve revealing specific methodologies or results that are closely tied to the client’s interests and the integrity of the appraisal process. Similarly, disclosing the client’s specific instructions goes directly against the principles of confidentiality and could harm the trust necessary for the appraisal relationship.