Uniform Standards of Professional Appraisal Practice (USPAP) Practice Exam

Is a workfile required to support a Restricted Use Appraisal Report?

1. Yes, always

2. No, it is not required

3. Only upon client request

4. Only for unique assignments

The correct answer is: No, it is not required

A Restricted Use Appraisal Report is designed for a specific audience, typically the client, and heavily specifies the limitations on its use. Under the Uniform Standards of Professional Appraisal Practice (USPAP), a workfile is generally defined as a collection of material that supports the appraiser's opinion and conclusions in the report. However, for a Restricted Use Appraisal Report, the USPAP guidelines do not mandate the maintenance of a workfile for all situations. This arises from the restricted nature of the report itself, which is not intended for general distribution or review by others. In scenarios where a report is limited to the client and perhaps used for a very specific purpose, the requirement to maintain a workfile may not be applicable, especially if the findings and the reporting meet the specific parameters set out by the appraisal standards. Therefore, while it may be prudent for appraisers to keep some documentation, it is not a universal requirement within the context of a Restricted Use Appraisal Report. This allows for flexibility in the appraiser's process while still adhering to the overarching standards laid out in USPAP.