Do I have an "Ethical Obligation"?

[Zoe]

Let's assume the subject is overlooking most beautiful scenery in the world. H&B use on MV appraisal may not be single family residential.

Just don't use "shadiness" in communication with your client or anybody else. When you use a term like "shadiness", you are not focusing on subject property real property rights.

 

[Andee]

Let's assume the subject is overlooking most beautiful scenery in the world. H&B use on MV appraisal may not be single family residential.

Just don't use "shadiness" in communication with your client or anybody else. When you use a term like "shadiness", you are not focusing on subject property real property rights.

It didn't go in the report, I left my suspicions out of it.

 

[Zoe]

It didn't go in the report, I left my suspicions out of it.

So you already submitted report to client. Let me think about this.

First thought. Call client today. Not tomorrow. Not next week. Today.

Just so we are on same page. Do you understand?

 

[sputnam]

I have a property that I inspected and eventually the owner met me there, after someone else provided access. This is over 9,000 sf, over 1.5 acres, pool, tennis court, separate indoor half basketball court, grill, outdoor fireplace, and a fire pit, and being leased. When I asked about the current rents, he didn't remember and had to back to the office and check, eventually he got back to me and said it was $30,000 monthly, but while he was there he told me his brother is leasing the property.

Well, after doing some research I found the property was under the name of their company, in March 2025 it was transferred out of the company and to the brother that is leasing it, and in April 2025 it was transferred to the brother that is the current owner of title. After some more digging I found out that the company filed bankruptcy and the property was up for some type of auction sometime in June 2025, and with some more research, found that the current owner was in the same boat on his residence.

Basically, the brothers owned the company together, it went under while the company held both of their personal residence. They transferred from the company to their own name, then transferred each property again to the other, so they are now technically leasing their own residences from their sibling. Is there any ethical obligation I have to report the shadiness of all this, or just report all the transfers for my property that I'm working on? Oh, and lets not mention the fact that I have absolutely no rental properties in that price point.

Easy. Your appraisal report will identify the borrower and the owner of record. Your appraisal report will include a three year sales/transfer history of the subject property. State facts as you know them.

 

[Tom D]

Would mentioning the financial problems of the people involved be considered an act of value 'discrimination". Just wondering.

 

[Fernando]

It didn't go in the report, I left my suspicions out of it.

You mentioned the transfers of ownership. Just state what occurred in the report.
Given your lack of rental data, that's your real issue.

 

[ZZGAMAZZ]

If the opinion of market value is lower than the SC price, I pro actively comment in teh appraisal to avoid being asked - even though technically it is not a USPAP obligation. It is more about client service.

If the SC price is higher than a MV appraisal opinion and there is a facto that it is not an arms-length sale, state it. Sometimes, there is no real reason except that their price is their price. In those cases I state that a SC price is negotiated between parties and the market value opinion was based on the most comps as adjusted. (or whatever comments apply )

Maybe I'm wrong, but I think the appraiser is responsible to "teport and analyze" a purchase agreement, but only to "report" prior transfers. I personally comment on any variance between the purchase contract value and my OV, and also any variance betweeen the subject actual rent and my OV market rent, although I don't think an appraiser is responsible to do so.

 

[ZZGAMAZZ]

Maybe I'm wrong, but I think the appraiser is responsible to "teport and analyze" a purchase agreement, but only to "report" prior transfers. I personally comment on any variance between the purchase contract value and my OV, and also any variance betweeen the subject actual rent and my OV market rent, although I don't think an appraiser is responsible to do so.

The subject of a recent refinance for a duplex included four rental lease agreements on a duplex, which resulted in the subject's rental income 2x market rental value. I was provided with copies of four lease agreements all currently in place--but borrower told me later that the her loan officer recommended that ploy....

 

[Fernando]

Maybe I'm wrong, but I think the appraiser is responsible to "teport and analyze" a purchase agreement, but only to "report" prior transfers. I personally comment on any variance between the purchase contract value and my OV, and also any variance betweeen the subject actual rent and my OV market rent, although I don't think an appraiser is responsible to do so.

Really I didn't know that. I make comments on prior transfers especially if wasn't listed in MLS.

 

[ZZGAMAZZ]

Really I didn't know that. I make comments on prior transfers especially if wasn't listed in MLS.

i think it's sufficient to say that "xxxxx transferred as doc# xxxxx that recorded on xxxxxx for xxxxxxx, as an xxxxxxx deed, which was a non-open market transfer."