Did I Disclose Confidential Information?

[AceAS]

I was just on the phone with a listing agent scheduling an inspection of a SFR. The form ordered is SFR investment, so 1004, 216 and 1007. I asked if she knew of any rentals in the area similar to the subject. Unfortunately, she had no idea the buyer was using the subject as an investment property and she is now concerned about the strength of this buyer. Due to my extended TAT of 5/22 (appraisal objection deadline was originally 5/12) she is thinking about advising her client to move forward with another offer (back-up). After she said that I got off the phone as quickly as possible and disclosed my conversation to the lender.

Did I violate USPAP by disclosing the appraisal form the lender ordered to the listing agent?

 

[Mike Kennedy]

if "I asked if she knew of any rentals in the area similar to the subject." You disclosed no confidential info - merely sought her market expertise on OTHER properties which happen to be rentals. Part of your HABU analysis.

IF you stated, "I'd like to find other properties that are rented like the subject is" - that would be divulging info you learned during the assignment which she MAY or may NOT know about.

Semantics is important.

 

[Meandering]

The form ordered is SFR investment, so 1004, 216 and 1007.
Sure it's not for a vacation or second home, instead of a rental?

I agree with Mike.

 

[AceAS]

She knows I need to complete a rent survey before I can complete the appraisal--yes, I have a big mouth but I am usually very careful about disclosing information I feel may be confidential. I agree semantics are very important and I'm sure I could have phrased it differently to avoid saying that a rent survey had been ordered.

Based on your comments it looks like I did violate USPAP by disclosing a rent survey had been ordered--damn! . . . now what can I do to remedy the issue? Like I said I disclosed to the lender my conversation with the LA. Anything else?

 

[Meandering]

Tell them you include the income approach in almost all your appraisals, it is one of the 3 approaches you are supposed to consider, and roll with it.

I do income approaches on res properties all the time, that are not rentals or vacation homes.

.

 

[Tim The Enchanter]

Which section of USPAP do you think you violated? I know nothing (Sgt Schultz defense).

I don't see an issue other than the agent may be unhappy.
Their psychological well being is not my job. It's a non issue to me.

 

[jay trotta]

Which section of USPAP do you think you violated? I know nothing (Sgt Schultz defense).

I don't see an issue other than the agent may be unhappy.
Their psychological well being is not my job. It's a non issue to me.

Nuff Said !

 

[Meandering]

An appraiser must protect the confidential nature of the appraiser-client relationship. 292

An appraiser must act in good faith with regard to the legitimate interests of the client in the use of 293

confidential information .... 294

 

[BarrySW1963]

Generally, purchase appraisals aren't ordered unless the property is under contract, right? I don't see how this would give cause for the seller to back out w/o being in breach of contract. So, even with a USPAP violation, whether or not it blows up on you depends on what the agent does with the info (i.e., induces the seller to breach the contract). Just an observation.

 

[bnmappraisal]

I think you did a good thing advising your client/lender. If they have no issue with it, then you should be fine. You may have "technically" disclosed conf info (depending on exactly what you said and HOW you said it, as Mike points out), but if the client doesn't care? You should be fine.