Confidentiality Rules, Nevada

[Jeff Deuitch]

I am an appraiser in Florida. My family is selling a property in Las Vegas. The sales contracts out there appear to commonly have appraisal contingencies in the contracts. Here they often have financing contingencies, but the appraisal values are not generally revealed as part of this.

Here in Florida we cannot communicate appraisal details to anyone other than the client defined in the appraisal report. Is it different in Nevada? Given the contract contingency, is it the borrower who discloses the appraised value to the agent and seller for the purpose of the contract contingency?

Thanks.

 

[BRCJR]

It is a way for a buyer to be able to back out of the contract. If the appraised value is not at a certain level, contract price at least in most cases, the buyer has an out. Similar to a home inspection issues. Resolved or renegotiate the contract based upon conditions or values .

 

[J Grant]

I' ve seen appraisal contingencies here in FL contacts too, it;s function is as above post describes. Appraisers are not supposed to disclose/discuss confidential/value results outside of client. That rule does not apply to buyers or agents.

 

[hastalavista]

The USPAP applies to the appraiser, not to lenders (on the origination side), borrowers or their agents. Obviously the borrower is going to know if there is an appraisal-issue with the purchase because his/her lender is going to tell them that they either (a) have to renegotiate the deal to meet the appraisal value or (b) pony up with some more cash.

I would think the same applies in Florida: have you ever received a reconsideration request because the borrower thinks the appraisal is too low? Once the borrower has an appraisal, they can disclose it to whomever they want.

 

[bnmappraisal]

I often run into appraisal contingencies. Most of the time it is with FHA loans, but occasionally I see it on CONV, although it's usually in the higher end properties ($500k+)
It's not unusual, and as BRCJR points out, it gives the buyer a way to back out of a deal