When is it considered unethical to disclose confidential information to a third party according to USPAP?

The correct answer indicates that the disclosure of confidential information to a third party is considered ethical when the client has authorized it. Under USPAP, confidentiality is a key principle, which obligates appraisers to keep their client's information private unless the client gives explicit consent to share it. This respects the trust relationship that exists between the appraiser and the client.

When an appraiser has obtained the client's authorization, they can disclose information without breaching ethical standards. This principle ensures that clients have control over their sensitive information and are informed about how it might be used or shared.

The other scenarios presented do not align with the ethical guidelines set forth by USPAP regarding confidentiality. For example, disclosing information simply because it is requested by law enforcement does not necessarily pertain to authorized consent from the client, which could lead to a breach of confidentiality unless the law requires the appraiser to comply. Similarly, if a client wishes to keep information secret, it must be regarded as confidential by the appraiser, limiting any disclosure to third parties. Finally, personal opinions of the appraiser do not hold relevance for disclosures; the confidentiality obligation is strictly tied to factual information provided by or related to the client and their data.