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Changes to State Law we need

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Terrel L. Shields

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Certified General Appraiser
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Arkansas
An appraiser / state legislator is responsible for the Registered appraiser law in arkansas which the state board did not endorse, and frankly, I doubt even wanted to deal with.

But what laws do you think should be promoted to the various legislatures to improve the profession?

I think a state law that forbids punitive damages against an appraiser would be a net plus. Couple that with loser pays.

State law setting 2 years as a statute of limitations. If the appraisal is not contested by then, in my opinion it is a frivolous claim anyway.

Forbidding anyone but the client or intended user from filing a lawsuit against the appraiser in state court. (but allowing borrowers to file complaints against appraisers to the board) Such complaints should be investigated by a representative or employee of the board with adequate certification to reappraise the property or review the report.

No one needs a cloud over their head for years. Require the Board investigate and act upon a complaint within 6 mo. or be automatically dismissed.

Lien laws for appraisers allowing them to attach lien against properties where they have not been paid by a lender.

Codify the notion that there can be no damage unless USPAP is violated seriously enough to affect the value indication. Proof of USPAP violation should be required in the form of a review by a certified appraiser with certification equal or greater than the license of the person being sued.

What others do you suggest? OR why would you differ from the suggestions above?
 

Steve Owen

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Jan 16, 2002
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Certified General Appraiser
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Missouri
Terrel, I would suggest one for other states that we already have in Missouri. You cannot call yourself an appraiser unless you are state certified.

In other words, BPO's now must speciffically state that they are not appraisals. AVM's cannot be presented as appraisals unless signed by a state certified appraiser (who, of course, also has to meet USPAP minimum requirements).

I'm sure some other states may have a similar law, but many do not. The day our law went into effect, an old fellow here in Joplin, who had been doing appraisals for years but was never certified, went out of business.
 

Terrel L. Shields

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Arkansas
Well, I was never one to fear competition whether from certified or unlicensed people. i really am thinking more in the line of protecting appraisers from lawsuits. Lawsuits brought against us from people we never met, who "never had a dog in this fight" sorta thing. I am being sued by 2 people whom I have never met nor talked to and never appraised their property. They are suing me because I am an appraiser (independent fee appraiser that I am) that works for the Bank they were foreclosed by. They want to prove that I collude with that bank to cheat people and they want to take it up as a RICO violation in a class action suit. Despite this ridiculous situation, I cannot get the suit dismissed until we get at least to depositions/ meanwhile they are allowed to rifle every file of every appraisal I did for that bank between 1992 and 2002 in the form of interoggatories. And I have to provide those files, sorting out the non-bank files in diffidence to the privacy act and Ethics provision. I will spend days, maybe a week with a bunch of Tulsa lawyers, going over each file one at a time. My lawyer assures me that it would be a miracle if the judge allowed me to recoup my legal fees let alone my time wasted.
Thats what we need protected from, not some old geezer who values property (and probably does so quite accurately.)
 

Steve Owen

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Certified General Appraiser
State
Missouri
I feel for you, Terrel. I was once sued because a tenant had a large dog who bit a kid that was teasing him.

Atty at deposition: "What did you do to protect the public from your tenant's dog?"

My Answer: "If the tenant had a gun and shot someone would I be responsible for that, too?"

My lawyer thought I did a good job, but when I complained about even having to go through the process his answer was "Everyone should have access to the courts." Or something like that.

The reason you won't get most of the reforms you have suggested is because a large number of your state legislators are lawyers. lol. (Or laugh until it hurts.)

I wasn't suggesting that other states get a law like Missouri's to protect myself from competition. There are plenty of good appraisers around. But, we need to protect the industry from snake oil salespeople, whether they are licensed or not. (I also am in favor of strong sanctions against licensed appraisers who violate ethics and rules.)

_______

Lawsuit, n. a machine which you go into as a pig and come out as a sausage.

Ambrose Bierce
 

Don Clark

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Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
8)

Terrel,

What you propose sounds much like a blanket exculpatory law for appraisers. Ain't never gonna happen. I agree with a statute of limitations. However, USPAP has set that as a national standard for 5 years. I belive it should be reduced to 3, and same 2 years after conclusion of any legal proceeding. I also agree with the lien theory being applied to appraisal services.

In my state of Virginia we allow Realty agents to do BPO's, AMS, etc for a fee. I believe you have to be a p#[email protected] poor real estate agent to want to do such things. We also allow for unlicensed folks to do evaluations. But, if you do an appraisal, call your work an appraisal, and yourself an appraiser, you have to be state licensed or certified.

Much of what we face in terms of litigation, state by state, is so new there are few case laws to deal with the subject. I applaud any effort to make the suing of an appraiser more difficult, particularly by those with whom the appraiser has no connection by law of agency.

Don Clark, IFA
 

Leon Stewart

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Joined
Jan 15, 2002
Terrel, I would suggest one for other states that we already have in Missouri. You cannot call yourself an appraiser unless you are state certified.

In other words, BPO's now must speciffically state that they are not appraisals. AVM's cannot be presented as appraisals unless signed by a state certified appraiser (who, of course, also has to meet USPAP minimum requirements).

I'm sure some other states may have a similar law, but many do not. The day our law went into effect, an old fellow here in Joplin, who had been doing appraisals for years but was never certified, went out of business.

If an AVM doesn't meet USPAP anyway, how can an Appraiser with just his/her signature make the Report USPAP compliant?

leon
 

Steve Owen

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Jan 16, 2002
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Certified General Appraiser
State
Missouri
Leon, he/she can't. That's part of my point. In Missouri if you're going to call it an appraisal it has to be and appraisal.
 

Leon Stewart

Member
Joined
Jan 15, 2002
Leon, he/she can't. That's part of my point. In Missouri if you're going to call it an appraisal it has to be and appraisal.

Steve:

That being the case, wouldn't it be improper for a Licensed/Certified Appraiser to sign a BPO or an AVM? Since it appears as though the intent of the signature is to mislead someone into thinking that the Report has something to do with a Legal Appraisal. Furthermore It seems as if this process also allows the Appraiser to misrepresent him/herself which places (Appraiser) in violation of the licensing law.

leon
 

Terrel L. Shields

Thread Starter
Elite Member
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Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
However, USPAP has set that as a national standard for 5 years. I belive it should be reduced to 3, and same 2 years after conclusion of any legal proceeding

Unfortunately, USPAP does not set a statues of limitations. I am being sued over an appraisal that was done Oct. 28, 1996. Filed May 2002. Do the math. If it is a contract dispute, then contract law has a 2 year SOL. Fraud (which is the accusation and likely will be the most frequent accusation any appraiser faces) has no such limit, in fact, is limitless apparently. You may not be able to produce a document that is over 5 years old because you purged it from files, but you still can be sued over it and you can bet your bippy THEY have a copy of the appraisal or 99% of them could not remember your name to sue you.
 
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