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Conflict of Interest Questionl

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JoAnn Babushko

Thread Starter
Freshman Member
Joined
May 9, 2002
I received a assignment today from a lender on a property that my son is purchasing. I called and told the lender that it would be a conflict of interest if i did assignment, he said it did not matter to him. Feed back please.
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
It is safer to decline the issue. If any party believes there could be bias on your part, then it could be trouble for you. I, on the other hand, could appraise my own house and be unbiased. However, who could or would believe that I was unbiased. There lies the problem. No matter how honest you are, somebody could question your ethics and sound valid.
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Decline or make sure you disclose the relationship in a place that cannot be missed. With that disclosure, I doubt it will be accepted and they will then pressure you to take disclosure out.

Personally, I would decline.
 

Neil (Texas)

Sophomore Member
Joined
Jan 16, 2002
Professional Status
Certified General Appraiser
State
Texas
Decline the assignment. Limit your liability exposure... think long term. Where is this appraisal going to end up and in whose hands?
 

Jeff Horton

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Alabama
I agree with the others that I would decline that appraisal. It would look really bad if you ended up in court for some reason.

But I was told in a USPAP class that we can appraise it even with a conflict of interest as long as we clearly disclose our relationship with the client. If the client is willing to accept it then we can do it.
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
But I was told in a USPAP class that we can appraise it even with a conflict of interest as long as we clearly disclose our relationship with the client. If the client is willing to accept it then we can do it.
True, but...... Run Forrest, Run!!
 

Rick Hess

Sophomore Member
Joined
Feb 6, 2002
Decline, Decline, Decline. With that said, make sure the appraiser your son gets is someone you know and trust, and check it our thoroughly to make sure your son don't get screwed to the outhouse wall.

Brick
 
A

Anonymous

Guest
Joann,

Can you do it? Yup. It would be in big bold letters somewhere on every page of the report that I was related to the buyer.

Shuold you do it? Nope. LIke most of the others here, I would thank the client for the order, but state that you just really should not do this because of your relationship and you would not want to offend the realtor/sellers, etc if something happened concerning the value.
 
A

Anonymous

Guest
Don't do it, refer the assignment to an appraiser whose work you trust. Your son will get a good appraisal and the appraiser will owe you a favor.
 

BarbaraNJ

Junior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
New Jersey
Have been divorced about 15 years from my "ex"

Got a call about three years ago from an established client. Ordered an appraisal on property owned by my ex. I called the bank President and let him know this was my ex. He asked if it was a problem for me--I said "no", but I needed to disclose an "old" relationship with the borrower. He said he was confident I would be impartial (I don't even like the guy, so he wasn't going to get any "favors"). He had his staff call the "ex" to ask him if he had any problems, he also said "no".

A friend suggested I call the State Board for their opinion, anyway, just to be safe.

The State Board said I took all the necessary steps, and that I should probably get everything in writing, BUT it was their recomendation that I not take the job. They said that it was my responsibility to AVOID EVEN THE APPEARANCE OF CONFLICT OF INTEREST.

Moral of the story: The final opinion should be that of your State Board, since they are the people who can take your license away.
 
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