If a state law requires appraisers to retain workfiles for 10 years, how is this treated under USPAP?

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In this scenario, the correct choice is that the requirement of retaining workfiles for 10 years is treated as an example of jurisdictional exclusion under USPAP. Jurisdictional exclusions occur when a state law or regulation creates a conflict with USPAP standards. In this case, while USPAP mandates that appraisers retain workfiles for a minimum of five years following the completion of a service, the state law imposes a longer retention period.

USPAP allows appraisers to comply with stricter local laws and regulations, meaning they can follow the state's requirement without violating USPAP, as long as they clearly distinguish which aspects of the workfile retention rule they are following based on state law. Thus, the state law effectively allows for a jurisdictional exclusion, acknowledging that when local laws necessitate different practices than what USPAP prescribes, those local laws take precedence.

This understanding helps appraisers navigate the complexities of maintaining compliance with both USPAP and state-specific regulations, emphasizing the importance of remaining informed about applicable laws in their area.

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