Feb 04

Privacy Statements for Personal and Real Property

  • Informs the client and intended users what they should expect from the appraiser
  • Complies with the Graham-Leach-Bliley Act of November 1999
  • The Federal Trade Commission issued a rule as a result of the law that focused on the protection of “non-public personal information” provided by consumers to those involved in financial activities “found to be closely related to banking or unusual in connection with the transaction of banking.” These activities have been deemed to include “appraising real or personal property.”
    Quotation from the FTC, Privacy of Consumer Financial Information; Final Rule, 16 CFR Part 313)
  • While the inclusion of a Privacy Statement is not required by USPAP, USPAP refers to “Confidentiality” within the ETHICS RULE (See page U-8-9 of the 2008-09 USPAP)
  • USPAP defines confidential information as information that is either:
    • Identified by the client as confidential when providing it to an appraiser and that is not available from any other source; or
    • Classified as confidential or private by applicable law or regulation
    • (See p. 2, Definitions, USPAP 2008-09)

Pursuant to the terms of the GLB Act, the Privacy Notice should be presented to the client for whom the appraisal is to be performed PRIOR to the commencement of services and thereafter on an annual basis if the duration of the engagement lasts more than a year.