1004D final inspection question

[V. Nightshade]

I completed an appraisal AS IS for a purchase. At the time of the appraisal, a piece of drywall in the laundry room had been removed for a repair, that per agent was taking place that day. The issue was so minor that I did not feel that it was required to check "subject to repair...hypothetical" checkbox.

The lender has ordered a 1004D for a final inspection. I did not "Condition" the report. The 1004D asks if the improvements have been completed in accordance with "conditions" stated in the original report. Can I interpret the word "condition" to mean "condition of the property"? Or does this "condition" refer to the "reconciliation "section"

Do I need to add the certification that I have performed a prior service on this property? I'm a little confused about this.

Did I err in any "important" way in not checking the "hypothetical" checkbox?

 

[Rich Heyn]

I completed an appraisal AS IS for a purchase. At the time of the appraisal, a piece of drywall in the laundry room had been removed for a repair, that per agent was taking place that day. The issue was so minor that I did not feel that it was required to check "subject to repair...hypothetical" checkbox.

The lender has ordered a 1004D for a final inspection. Do I need to add the certification that I have performed a prior service on this property? I'm a little confused about this.

Did I err in any "important" way in not checking the "hypothetical" checkbox?

You do need to disclose prior services even though the client is well aware of it. Also, now that it's 2012, don't forget to disclose that you have not provided prior services in those cases where you have not.

 

[Randolph Kinney]

I completed an appraisal AS IS for a purchase. At the time of the appraisal, a piece of drywall in the laundry room had been removed for a repair, that per agent was taking place that day. The issue was so minor that I did not feel that it was required to check "subject to repair...hypothetical" checkbox.

The lender has ordered a 1004D for a final inspection. Do I need to add the certification that I have performed a prior service on this property? I'm a little confused about this.

Did I err in any "important" way in not checking the "hypothetical" checkbox?

From Fannie Mae single family selling guide: if the appraiser reports the existence of minor conditions or deferred maintenance items that do not affect the livability, soundness, or structural integrity of the property, the appraiser may complete the appraisal “as is” and these items must be reflected in the appraiser’s opinion of value.

As for the 1004D, the prior services applies to appraisals. You can do the 1004D and note that the lender is calling out the inspection/completion requirement and you are acting as the lender's chosen agent to do that.

 

[V. Nightshade]

Thank you so much.

 

[Rich Heyn]

The Ethics Rule discusses disclosure of prior services in the context of an assignment. Assignment goes beyond appraisal, appraisal review or appraisal consulting. So even though the "bottom half" of the 1004D is not an appraisal, it would seem that the disclosure requirements would apply.