Confirm That Utilities Are "on And Working"

[residentialguy]

may rely on the appraisal

for what, though?

I'll answer that. They may rely on it for the purposes of that transaction, since it does involve them. That is not a blanket ...take the appraisal and do with it what you want. Tom is correct, if that's what he meant by saying they should not rely on it. Obviously anyone can rely on any appraisal for anything, but that is not the intended use nor is it for the intended user, and we are not bound to that reliance. Cert 23 is only relevant to the intended use and the intended user. The appraisal is not for the buyer or the seller. Your appraisal is written in a way to be understood by the intended user, not for the home owner. Now if Tom means that the other parties of the transaction can't rely on it for that transaction, meaning they have no recourse if the appraiser screws up and puts them with some type of damage, then he's absolutely wrong. They will sue and they will win if they are damaged by errors committed by the appraiser.

 

[TRESinc]

Again, then don't use it!

I am on this forum for an exchange of ideas. I learn from others, others learn from me.

You don't do that. The only opinion you care about is yours. You are here to contradict whatever anyone says. You trust your opinion over an expert. As a result, you will never learn anything. So be it.

Do me a favor and just ignore my posts from now on. It is tough reading what others say if I have to sift through all your mindless posts

i never said i would use it, but telling others to put something that goes against the very form you are adding it to should not happen. you seem to like to tell people what to do. it's how you entered this discussion. maybe something to think about. on the flip side i have agreed with several people in this very thread, which contradicts you saying i am only here to contradict others. kinda ironic, huh?

for what, though?

I'll answer that. They may rely on it for the purposes of that transaction, since it does involve them. That is not a blanket ...take the appraisal and do with it what you want. Tom is correct, if that's what he meant by saying they should not rely on it. Obviously anyone can rely on any appraisal for anything, but that is not the intended use nor is it for the intended user, and we are not bound to that reliance. Cert 23 is only relevant to the intended use and the intended user. The appraisal is not for the buyer or the seller. Your appraisal is written in a way to be understood by the intended user, not for the home owner.

the cert says that multiple people/entities can rely on the appraisal as part of a mortgage finance transaction, not for the sale of a property. with some exceptions a mortgage amount is less than a purchase and the purchase price had already been established prior to the appraisal. while it's true they have caused some purchase prices to change it happens far less than not. what others rely on it for is not defined, and we agree the appraiser has no obligation to anyone other than their client, but the named parties can rely on the appraisal for whatever they wish with respect to the mortgage transaction.

 

[residentialguy]

the cert says that multiple people/entities can rely on the appraisal as part of a mortgage finance transaction...what others rely on it for is not defined

That transaction, not anything else. They can NOT change the intended use and the intended user. That's where you have to clarify and define it. If you don't...well, don't say I didn't warn you.

 

[TRESinc]

That transaction, not anything else. They can NOT change the intended use and the intended user. That's where you have to clarify and define it. If you don't...well, don't say I didn't warn you.

i agree with you...(ha! did it again tom!) and have since the start. i was never talking about intended use or intended users. i quoted tom telling people to add a line in that only the lender can rely on the appraisal report, which is simply not true and goes against the certification we agree to when using the 1004.

 

[residentialguy]

Why they even added Cert 23 is beyond me! One thing is for certain..they don't have the appraiser's best interest at heart.
We may appraise in Winter, Spring, Summer, and Fall... To them, we're just a Fall guy.

 

[sunsetvalley]

We put this in our scope of work which is from Fannie Mae: “The Intended User of this appraisal report is the Lender/Client. The Intended Use is to evaluate the property that is the subject of this appraisal for a mortgage finance transaction, subject to the stated Scope of Work, purpose of the appraisal, reporting requirements of this appraisal report form, and Definition of Market Value. No additional Intended Users are identified by the appraiser.” We also add: It is a common misconception that the borrower is an intended user of the appraisal. The borrower is not an intended user of the report. It is clearly stated in USPAP that regardless of who pays for the appraisal, the appraiser/client relationship is the party listed on the lender/client line.

The last bit solved a lot of "But I paid for the appraisal" whining when they call and we refuse to talk to them without a written ok from the client.

This is also in our disclaimer section:

"The use of this appraisal for any other purpose or function or by any other uses is strictly unauthorized including but not limited to use for insurance, estate planning, litigation or dissolution of marriage. This appraisal is not to be used for the decision to purchase or not purchase the subject property. This appraisal is non-transferable without prior written consent of the client/lender. No responsibility is assumed for unauthorized use of this report."


I'm trying to update our addendum, any thoughts?

that's a great paragraph but it means nothing with regard to what my post was directed at, and quoted, from tom4value.
tom wasn't talking solely about intended user/use as you are. the intended user/use was never in question. both intended user and intended use are clearly spelled out on page 4. cert 23 states that people other than the defined intended user may rely on the appraisal as part of a mortgage finance transaction provided they are a party to the transaction. tom wanted to change that so that ONLY his client could rely on the report, which directly contradicts cert 23, and is not allowed.

 

[residentialguy]

I'm trying to update our addendum, any thoughts?

I like it...certainly can't hurt. What I've always done is attach this letter addressed to the homeowner/buyer to all of my appraisals, rather than jam all that in the report.

***Important Information for Borrower and/or Property Owner***​

This report was created specifically for the Lender stated above, who is the Client and the only intended user. This is NOT intended for any purchaser or seller to rely on the appraisal to influence the a decision to buy or sell the appraised property, nor is it intended to influence or aid the homeowner(s) in any legal or civil decision regarding the property, such as a divorce or an estate proceeding. Even though you may pay an appraisal fee or later receive a copy of this report from the Lender/Client, you are not considered or authorized as an Intended User and are not to use or rely on my appraisal for your own purposes. This appraisal report is for the Lender/Client’s use only and written in language and format the Lender requested and understands. No other users are intended or inferred. This appraisal report and all of the appraiser’s work in connection with the appraisal assignment are subject to the limiting conditions and all other terms stated in the report. Any use of the appraisal by any party, regardless of whether such use is authorized or intended by the appraiser, constitutes acceptance of all such limiting conditions and terms stated within the report. The appraiser shall not be held liable in any unauthorized use of this report.

If you require an appraisal for your own use or are concerned about the property’s value or any conditions which may affect the property, you should engage an independent appraiser of your own choosing for that use. Company policy as well as my duties and confidentiality rules under the Uniform Standards of Professional Appraisal Practice and other regulations, guidelines and State laws, forbids me to speak with anyone but the Lender about the results of this appraisal assignment. If you have any questions or comments regarding my appraisal, please contact the Lender/Client.

Sincerely,

 

[residentialguy]

i agree with you...(ha! did it again tom!) and have since the start.

 

[sunsetvalley]

I like it. I sure wish we didn't have to educate the borrower on the process. Seems like to me that should be the job of the loan officer since it's their client.

I like it...certainly can't hurt. What I've always done is attach this letter addressed to the homeowner/buyer to all of my appraisals, rather than jam all that in the report.

***Important Information for Borrower and/or Property Owner***​

This report was created specifically for the Lender stated above, who is the Client and the only intended user. This is NOT intended for any purchaser or seller to rely on the appraisal to influence the a decision to buy or sell the appraised property, nor is it intended to influence or aid the homeowner(s) in any legal or civil decision regarding the property, such as a divorce or an estate proceeding. Even though you may pay an appraisal fee or later receive a copy of this report from the Lender/Client, you are not considered or authorized as an Intended User and are not to use or rely on my appraisal for your own purposes. This appraisal report is for the Lender/Client’s use only and written in language and format the Lender requested and understands. No other users are intended or inferred. This appraisal report and all of the appraiser’s work in connection with the appraisal assignment are subject to the limiting conditions and all other terms stated in the report. Any use of the appraisal by any party, regardless of whether such use is authorized or intended by the appraiser, constitutes acceptance of all such limiting conditions and terms stated within the report. The appraiser shall not be held liable in any unauthorized use of this report.

If you require an appraisal for your own use or are concerned about the property’s value or any conditions which may affect the property, you should engage an independent appraiser of your own choosing for that use. Company policy as well as my duties and confidentiality rules under the Uniform Standards of Professional Appraisal Practice and other regulations, guidelines and State laws, forbids me to speak with anyone but the Lender about the results of this appraisal assignment. If you have any questions or comments regarding my appraisal, please contact the Lender/Client.

Sincerely,

 

[residentialguy]

I like it. I sure wish we didn't have to educate the borrower on the process. Seems like to me that should be the job of the loan officer since it's their client.

lol...common sense is not a Realtor requirement, nor is it common.