Addendums/USPAP

[Randy Massengale]

Local appraiser recently called on the carpet for not disclosing the intended purpose and user of the report. Got me thinking. What disclosures and verbage is used out there for Intended User/Type of Report (Summary/Limited), purpose of appraisal etc. Trying to cover my rear and do it right before I'm called on the carpet. Thanks, Randy Massengale; Cinti, OH

 

[wyecoyote]

At the top of the apprisal report I state that it is a Limited Summary Appriasal Report (2055) and a Complete Summary Appraisal Report (URAR).

The intended user/use. I put in the addendum.
The intended user of this report is XYZ bank and immediate assigns only. THe intended use of the appraisal report is for lending purposes only and no other use is authorized.

I haven't been called to the carpet on that one yet.

Ryan

 

[Restrain]

Virtually all software has a USPAP Compliance Addendum - this has all the appropriate language. Just make it part of your report.

 

[Larry Lyke]

Randy --

Here's another version. In order to reduce the number of pages and addenda, I have this boilerplated at the top of my main Addendum. Doctor it to fit your own needs:

"SCOPE OF APPRAISAL

"Appraisal performed for Lender-Client-FHA, intended user(s), listed at top of page 1 of URAR to which this same file-Addendum is attached, for said Lender-Client and its successors or assigns exclusive use for real estate evaluation and mortgage purposes. Any other use or interpretation of whatsoever kind is expressly denied. Although Borrower might come into possession of a copy of this appraisal, Borrower is not a Client or an intended user."

Works for me. Never been questioned. With trivial doctoring, fits every occasion.

In my boilerplate, I leave 10-15 blank spaces per fill-in, so I'm not likely to send out an appraisal that hasn't been filled in AND edited; OR, may the gods forbid, an appraisal report with boilerplate SHOWING. That's like coming back to the dinner table from the toilet while pulling up your pants, if you know what I mean.

 

[NC Old Guy]

Ryan: Hate to be picky. But, your connection of words are not really correct. You said "Limited Summary Appriasal Report (2055) and a Complete Summary Appraisal Report (URAR)." The "limited"/"complete" deals with the APPRAISAL, the "summary" with the report. Therefore, it really is a "Limited Appraisal, Summary Report" OR "Complete Appraisal, Summary Report". To the best of my knowledge, there is no such animal as a "Complete Summary". Actually, I think that would be an oxymoron.

There is a difference between ---the appraisal-- and --the report--.
Don't feel alone. I've seen your connections a lot. And IMHO, you're not correct.

Leon

 

[jtrotta]

Ryan;
will have to check, but the phrase; the intended user of this report is xyz bank and immediate asigns only - thought you were to name a specific Bank & Address only :roll:

believe that came out a few years back, like I said will have to check that one. if the Bank wants to assign the mortgage docs, they have to do the paper work and the appraisal becomes inclusive of the package. Haven't done anything with asigns in almost 5-6 years for that reason 8)

 

[wyecoyote]

Leon,

Your right I did get those backwards didn't even think to check one when I typed it in.

jtrotta,

As far as the imediate asigns goes. This is what I have started using now I may be wrong but did get this from a USPAP class that I took a year ago. The instructor was on our state board. That is how the instructor said to phrase that particular portion. I've been using it now since the class and have not had a complaint about it. Did notice that one of the clients that I work with actually started requesting the exact wording in every appraisal they ordered about 6 months after I started putting that in. When I talked to the Manager she said that it came directly from my work and they request it now on every appraisal request the send out. So if I'm wrong would like to know now so I can correct it.

Ryan

 

[Mountain Man]

Ryan,
I have had clients require the same phrase. Mostly from brokers that never actually held the paper, just passing it on to the "assigns".

 

[bradellis]

Randy,

Try this:

Intended Use/Users: (for mortage lending)

This appraisal is intended to be used for mortgage lending purposes by the named client and/or its assigns in the normal course of lending activities. Use for any other purpose is neither authorized nor intended.

Brad Ellis, IFA, RAA