Gold Supporting Member
- May 2, 2002
- Professional Status
- Certified General Appraiser
Phil on liability with these Evaluations!!
In most (all but two) states, an evaluation done by an appraiser has to meet the requirements for an appraisal. Hence, it would be covered under the appraisal E&O, because it would have to be an appraisal report.Regarding Evals.
I like this scenario:
You are sued by lender for something with your Eval. The EO lawyer is NOT siding with you as you were not engaged as an appraiser, so is arguing against you.
You then have to side with the enemy and have their lawyer explain you were engaged as an appraiser.
So EO can pick up the $400k tab and not you.
Appraiser is the coin that comes up tails every time.
2 teams arguing why you are liable.
Talk to Landy EO.
Guy said may not be covered if you were not engaged as an appraiser but an expert evaluator (or any term the client engages you as except appraiser)
I don't doubt that. It is the answer would expect if one simply asked an E&O company if they covered evaluations. E&O typically covers appraisals, not evaluations. However, I seriously doubt if most E&O reps are aware that an appraiser providing an "evaluation" would be required, by law, to provide an appraisal report in most cases.Again.
Talk to Landy. They may not cover it. From guys mouth. Not mine.
When an "evaluation" is ordered the decision to use something other than a "full" appraisal has already been made. As appraisers, the choice is to diversify and do that type of work, or leave it to others.An appraiser cannot compete with an evaluator and every eval or short appraisal (restricted or not) subtracts from available full fee work