Conflict Of Interest?

[Richard Carlsen]

I disagree with you Jo Ann. I'd keep to one client and one client only since the buyer is the one making the decision. the brokers will not be party to the contract.

As for forms, here is a place for the new AI form (if and when we ever get it).

 

[Jo Ann Meyer Stratton]

Richard--I think that is what I said but I must not have been very clear. The buyer is the only client--the appraiser cannot disclose or discuss the appraisal report with any body except the buyer. The agents are only being messengers and not intended users.

 

[Otis Key]

Originally posted by Jo Ann Meyer Stratton@Dec 30 2005, 08:26 AM
In my opinion not only should the buyer be your client, I would also make it very clear to the listing agent, buyer's agent and the buyer that since the buyer is my client the appraisal will only be provided to the buyer and cannot be discussed in any shape or form with either the listing agent or the buyer's agent. I would also recommend there be clear statements all through the report that it is for the buyer's use only. And this would be a case where the March 2005 version would not be applicable! Use the 1993 version or maybe even a 2055 interior with lots of disclaimers and narrative--so that the report can't suddenly end up as part of a loan package!

I agree with Jo Ann on this one.

The buyer is the client and the only client!
The agents are third parties that you are not responsible to, nor can you answer or talk with either one about the report, analysis or findings.
The older version of the form with very prominent statements of "For purchaser advice only - NOT TO BE UTILIZED FOR ANY FINANCING OR LENDING PURPOSES!" placed on numerous pages through out the report.
Get paid up front.
Deliver the report only to the buyer.
Use the 93 version of the 2055 form to also add to the fact that it's not intended for lending purposes, if you use a form!

I'd suggest doing a narrative format rather than a form!

 

[CANative]

Thanks everyone.

When the agent called me we pretty much agreed that the buyer would be the identified client and that I could then only deliver a copy to them and I wouldn't be able to discuss the result with him. But I needed something in writing and he sent me a request. His brokerage agreed to pay for the appraisal (I don't know why)

So when he sent me the order it had the email address of still another real estate agent from another company. So I called him back and he said the buyers don't have email right now and the other agent agreed to accept the electronic report, print it and deliver it to the buyers.

This lead to a circular conversation with the agent that called me so it got kind of confusing. That's why I posted the question.

 

[Joker]

I agree entirely with Jo Ann.

The buyers should be the client, communicate directly with them and the report should be narrative.

 

[xm39hnu]

Greg,
I'll bet that buyer has a snailmail address that UPS can find. I know it's anachronistic, but we can still deliver hard copy.

 

[Ross (CO)]

Ditto, Jim P........What a wonderful throw-back to the old days, Greg. Finally a chance to create a hard-paper original, sign it with your own hand, and post in the mail to that buyer.

No electronic stuff, no opportunity for everybody to send it all over the countryside to someone who need not be a recipient......and leave it to the discretion of this buyer to photocopy it for any further distribution. Pass it along to that buyer with a for-your-eyes-only note attached ! Let them experience being the first to see the report......which nobody else has already seen......and forwarded to them.

 

[Mike Garrett RAA]

What is with this "narrative" craze? There is absolutely no reason you can't report your appraisal on a form report. Most of the time this type of assignment is extremely time sensitive and should be done post haste which leads me to another thought.

It is perfectly all right to release the appraisal report to the buyer's agent provided you have the client's permission to do so. If this is the case, I would get an assignment letter along with a check for payment from the buyer authorizing you to email the appraisal to them via their agent.

Happy New Year!

 

[CANative]

I agree with the old guy. It's a 1031 exchange and time is of the essence. I've got a zillion 6/93 reports to use as a template in this subdivision and can turn the appraisal in a day or two.

 

[xm39hnu]

What's wrong with a narrative? It need not take significantly longer to write than a form report. Indeed, leaving out lender-specific stuff can save time.

Develop a narrative template in your word processor. A template *is* a form. It's your form, though, and you can change it at will.