Is a workfile required in support of a Restricted Use Appraisal Report?

In the context of USPAP, a Restricted Use Appraisal Report is designed for a specific client and intended for limited use, meaning it is not meant for third parties. Because of this limited scope, the requirements for documentation can differ.

For Restricted Use Appraisal Reports, while an appraiser must maintain a workfile to support the appraisal, it is not explicitly mandated in the same way it is for other types of reports. The emphasis is on the appraiser's discretion regarding the retention of certain data and documents depending on the intended use and audience. In this case, the workfile serves as a package of information that can help verify the appraiser's conclusions if required, but it is not a strict requirement under USPAP for restricted use situations. Therefore, a workfile specifically for a Restricted Use Appraisal Report is not required in the same manner as it is for comprehensive reports that are intended for wider dissemination. This clarity is crucial for appraisers to understand, as it can influence how they manage their documentation practices.