You only want to provide the flood map number. DO NOT provide a flood determination. For that matter, put a comment in your report that the flood map information is just that, information, and that you are not giving them a flood determination. First, it's not your job- it's the lenders job by law. Second, if you make a flood determination, you have to be bonded to do so as you become liable for any error. And these can become very expensive, very quickly. So, something like Floodmaps.Com or some company that provides CDs with the flood data on it is fine. That's why we don't use Interflood or any other company that provides 'determinations'.
I don't see any liability UNLESS the thing somehow closes and then floods, and the lender didn't get a cert, and the owner didn't get ins. and somehow your comps weren't in the zone but the subject was...
So you stated you don't provide Flood info Hmmm, this I gotta try for myself :twisted:
Is everyone in your office religious about at least checking for their own selves?!?!?! see example above 8O
"Your appraiser is not licensed nor qualified to determine or provide opinion on the flood certification for the subject property. Please refer to lenders flood certification for this determination."
I know ignorance is no defense. But spelling it out seems to comfort.
To me the flood cert is kinda like the cost approach (99.9% of the time) except again i am under the impression the lender has to provide this service in order to close the loan......My opinion on the cost approach being its typically worthless except on complex or atypical situations. The market will bear what the market will bear, and I have a problem using Marshall and Swift as the bible and then throwing the rest of the value in the land. If the cost approach legitimizes itself the other 99.9% of the time then it needs to be about a page long (example being FHA new construction cost approach forms) not nearly enough room on the 1004 to spell out what you are trying to quantify under the three inch line beneath 'basement'.................acsys,appl,fp,deck,stp,etc......what is etc worth?? Anything you want it to be to bring the cost approach upto the indicated value by the sales comparison approach?
As a follow up on why I never give a flood determination and cite it only as information. House in North Dallas. Appraiser appraised property, stated rear portion was in flood zone, front portion was outside flood zone, did not identify exact area. Homeowner demolishes home, starts to build new $$$$$ custom home. Home footprint is larger and extends into the flood plain. City stops building, homeowner sues everyone, including the appraiser. Appraiser finally got out, but was a very expensive exercise of his E&O policy. If the appraiser had attached a flood determination or had made a determination on his own, it might have been worse.
Like MRM I don't fill out the flood cert on an appraisal. The report has a standard statement about not being an expert ... etc... and then reference is made to the flood cert by the lender. This has work very well over the past few years and I could probably count on one hand the number of times a client calls looking for the information (then I ask for a copy of their flood cert and they usually get the point).
Have several clients like this as they have had problems with inaccurate information from other appraisers causing discrepencies.