Question:

If requested by a client, can I purge my appraisal files and records of an appraisal that was not utilized in loan underwriting or in any other manner by the client?

Response:

No. USPAP does not permit appraisers to destroy records prior to five years after preparation for any reason, including a client’s request to do so or the fact that an appraisal is not utilized by the client. The Record Keeping section of the ETHICS RULE states, in part:

An appraiser must prepare a workfile for each appraisal, appraisal review, or appraisal consulting assignment.

An appraiser must retain the workfile for a period of at least five (5) years after preparation or at least two (2) years after final disposition of any judicial proceeding in which the appraiser provided testimony related to the assignment, whichever period expires last.