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This is the most commonly asked question and the answer is best obtained by having an independent appraisal completed. There are a few rules under USPAP which prohibit the appraiser from discussing certain aspects of the appraisal with anyone other than the client. This protects the appraiser from doing anything unethical but it also protects the client. Who is the client? USPAP defines the client as 'The party or parties who engage an appraiser (by employment or contract) in a specific assignment'. What is considered Confidential? 'information that is either:
An appraiser must protect the confidential nature of the appraiser-client relationship. An appraiser must act in good faith with regard to the legitimate interests of the client in the use of confidential information and in the communication of assignment results. An appraiser must be aware of, and comply with, all confidentiality and privacy laws and regulations applicable in an assignment.* An appraiser must not disclose confidential information or assignment results prepared for a client to anyone other than the client and persons specifically authorized by the client; state enforcement agencies and such third parties as may be authorized by due process of law; and a duly authorized professional peer review committee except when such disclosure to a committee would violate applicable law or regulation. It is unethical for a member of a duly authorized professional peer review committee to disclose confidential information presented to the committee.' What this means for you as a client? When appraising a property and your borrower asks: "What do you think my house is worth?" An appraisal consists of a thorough property inspection, location analysis and an investigation of relevant market data, and equating that information into an indication of market value for the property. The field work is merely a means of obtaining said information. "Can you send me a copy of the report." If the borrower is not named as the client in the scope of work we can not send him/her a copy of the appraisal report. "But I am paying for it." Regardless of who pays for the appraisal, the person who engages the services of the appraiser is the client. "So I am not entitled to a report on my home that I am paying for? That does not make any sense to me." According to the Equal Credit Opportunity Act the borrower may have a copy of the appraisal report, however in keeping with USPAP we can not directly give him/her a copy of the appraisal report. In addition to homeowners we also receive requests for completed reports from competing companies. At times we have been asked to “readdress” (transfer) the report to another party. Per USPAP Advisory Opinion 26 - Simply changing the client name on the report cannot change or replace the original appraiser-client relationship that was established with the first client. If an appraiser has appraised a property for one client and then is approached by a second company to appraise the same property, does USPAP prohibit acceptance of the second assignment? Per USPAP Advisory Opinion 27 - Assuming confidential information is handled correctly. This constitutes a second assignment, a new client and a new agreement between a client and an appraiser. For additional information on USPAP click on the link www.appraisalfoundation.org and go to |
