Uniform Standards of Professional Appraisal Practice (USPAP) Practice Exam

What is the appropriate response to a request for an appraisal dated prior to a new assignment?

1. Assume it is a new assignment

2. Clarify the terms with the client

3. Politely decline the request

4. Modify the previous report

The correct answer is: Clarify the terms with the client

The appropriate response to a request for an appraisal dated prior to a new assignment is to clarify the terms with the client. This approach is essential as it ensures that both the appraiser and the client have a mutual understanding of the assignment parameters. Clarifying the terms allows the appraiser to ascertain the client's specific needs, including whether they require an updated appraisal based on current market conditions, adjustments to the previous report, or a completely new appraisal with fresh data. This step is vital in maintaining professionalism and adhering to ethical standards, as it allows the appraiser to confirm whether the client is referencing past work as a foundation for a new appraisal or if they are seeking a separate analysis altogether. Engaging in this dialogue not only clarifies expectations but also protects the appraiser from potential liability associated with assumptions about the scope of work or the relevance of older data. In contrast, assuming it is a new assignment could lead to misunderstandings about what the client expects, and declining the request outright would negatively impact client relations and could be seen as dismissive. Modifying the previous report without consultation may not reflect current market conditions and could lead to incomplete or inaccurate conclusions, which are not in compliance with appraisal standards.