1004MC summary of sales?

[imjiminnh]

Karen,

Maybe we could arrange to have a breakfast meeting once a month with fellow appraisers to discuss some of the issues that are cropping up and develop a more unified group to deal with some of the external forces (like NNEREN) as they arise? I know a few appraisers that'd love the opportunity to eat pancakes instead of take comp pics once a month!

One thing I'm becoming more concerned about since NNEREN has decided to include appraisers phone #s is the amount of phone calls from people that I don't know asking for specific details on a property (If they're not a court of law, review of my peers or noted as the intended user...) . I just got off the phone with someone who claimed to be an appraiser and ex chair of the board, screaming at me because I wouldn't divulge details regarding attic access details and whether or not there was a security system installed at a property that I'd inspected. Not publicly available info, disclosing it violates USPAPs definition of confidential info, and just because they say theyre an appraiser doesnt mean that I'll open my workfile for them.

I'd sure like to sit down with some of the board and a few other appraisers to discuss the legal issues involved with this practice. It'd be nice to open some lines of communication between the board and us rank and file as well, maybe get an email database for broadcasting important info to our members, etc.

If anybody else reading this post is interested in doing something like this, send me a PM and I'll get the ball rolling!

 

[Karen Ryan]

Confidential Info

Jim,

Okay, I'll bite. Why do you think that the physical property data is confidential information that you can't disclose? Who's confidentiality are you violating by disclosing attic access or how much of the basement is finished? Do your clients tell you specifically not to disclose this information? I have never heard of another appraiser refusing to give this information to fellow appraisers nor have I ever had someone call that I thought might be posing as an appraiser. Frankly, I think your position is extreme and not the intent of USPAP. We have to be careful not to read things in to USPAP that aren't there.

The definition of confidential information in USPAP is: 1) identified by the client as confidential when providing it to the appraiser AND that is not available from any other source; 2) classified as confidential or private by applicable law or regulation. I've read parts of the FTC rule on this and it references the consumer's private, financial information but not physical property data. The sales contract is the only information I receive that could be deemed confidential, in my opinion.

I disagree with your comment that appraisers who call for information are "skippies" who don't want to do the necessary legwork. Often, assessing data is outdated or contradicts MLS data. I think appraisers that call other appraisers are doing a superior job by taking an additional step in confirming data rather than taking info off the property record cards and using it as gospel. Another appraiser's data is the best data available for a property I've never seen personally. And regarding concessions, sometimes changes are made after the appraisal is done so we might not have the most current data anyway.

We have a local group of about 9 appraisers and realtors that meets once a month for breakfast. We've been doing this for about 7 or 8 years. It's an excellent source of support and information. I heartily recommend it. I don't know if you belong to any professional organizations but, as a member and director of the NH Chapter of the Appraisal Institute, I can tell you that earlier this year we sponsored a panel discussion with four members of the NHREAB. They gave us valuable info and we were able to ask them questions. We will probably have another such meeting in 2011 and non-members are very welcome to attend. Plus, you get two hours of CE at a very reasonable price. If you'd like to receive our email notices, please let me know. AI-NH is the only organization in the state that still holds regular meetings now that NAIFA is defunct.

Karen

 

[imjiminnh]

Karen,

Per General Star (my E&O provider) attorneys, if information used provided by me is used by others and a lawsuit is later instituted, there is no question that I become liable for at least a portion of the report, furthermore, because providing that information lies outside of providing appraisal services to the original client they would not be responsible for any insurance coverage.

He went on to say that in his opinion any information developed in the course of developing a value opinion (not just the apprased value) is the property of the client and that at a minimum a release from the client should be obtained because I do not have the right to release it. He was also concerned that if I did not know the person calling, I could not even be sure that they were actually an appraiser, if their work was credible, and they weren't a potential criminal.

He stated that although he couldn't tell me how to run my business, I was unneccessarily increasing my liability, and he suggested that in the future calls be referred to the sales agent.

That said, and as far as USPAP goes, it's important to remember that an appraisal is not the number arrived at but also the development of the opinion, and that assignment results also include "adequacy" (like condition of the subject). Relaying non public information and assignment results is opening your workfile and giving someone an oral report on your findings. If that person is not the intended user, a judge, or a review of your peers, there's definitely confidentiality issues. Also, per item 19 of in statement of limiting conditions in the URAR there is a requirement to disclose the name and nature of contributions made by others. If the data collected over the phone from another appraiser is used to populate the sales grid for a comparable sale whose adjusted value is given weight in value determination, you must disclose the name/contribution as well as certify that they are qualified.

As far as sales concessions info goes, legal precedent was set when the Oregon state attorney general determined that this information could not be considered confidential, whether or not that finding would stand up in court in NH is beyond me.

I know that some of the appraisers that call are looking for further documentation than is available publicly, and that's commendable, but quite often the requests for "grid run downs" are from those sales in towns with no online assessors data and limited town hall hours. But honestly, if one of the appraisers that I network with called, I'd happily give them any info that they needed, the problem arises when the phone starts to ring off the hook with strangers asking for non public info.

The bottom line is, my insurance companys attorney states that they almost certainly will not cover me for any damage done by giving out the info, and has suggested that to continue doing so is a "bad business decision".

I did attend a couple of NAIFA meetings a year or two ago, but the CE at the time was more commercial in nature than residential, but sure I'd love to attend the breakfast meeting that you hold, as you might have noticed, I like to talk!

 

[Karen Ryan]

If I were you, I'd be shopping for another E & O insurer. It sounds like General Star is looking for excuses NOT to cover their customers.

After reading your last message, I checked with a lawyer at LIA, my E & O company, and he did not see any great liability from giving physical data (#BRs, baths, lot size, etc) to another appraiser - unless the client has specifically said not to disclose the info. This data is not considered "confidential" like value conclusions, income, etc. Nor had he seen any claims like this. LIA's reasoning is that most of the information is in the public sector anyway. Just because the data is in the report doesn't necessarily mean it's confidential - again, unless the client says so.

However, to be safe, I'm going to ask the state board to clarify whether physical property data is "confidential". I don't know if they'll take a position but it can't hurt to ask.