Question:

I have been looking for new clients and found that many request sample appraisals for review, but I’m concerned that I would be in violation of appraiser-client confidentiality by providing them.  To alleviate this problem, I’m considering including the following disclaimer in the “fine print” of my reports:

“The appraiser reserves the right to utilize this report in its entirety as sample work for the purpose of soliciting prospective clients unless written refusal is received from the client.”

Does USPAP allow me to do this?

Response:

No.  The client, not the appraiser, determines who may receive the appraisal report.  The Confidentiality section of the ETHICS RULE states, in part:

An appraiser must not disclose confidential information or assignment results prepared for a client to anyone other than the client and persons specifically authorized by the client…

Including a statement indicating that the report may be used as a sample does not constitute client authorization to distribute copies of the report.

One solution is to obtain client authorization to use each report as a work sample.  An alternative solution may be to redact all confidential information from the report before providing it as a sample.  The Comment to the Rule states:

When all confidential elements of confidential information are removed through redaction or the process of aggregation, client authorization is not required for the disclosure of the remaining information, as modified.