• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Help! Can I do the same property for 2 different clients?

Status
Not open for further replies.

Pamela Crowley (Florida)

Thread Starter
Elite Member
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Large waterfront estate is being auctioned.

I have 1 client already for a complete summary appraisal report. Can I do it again for a different client????

What do our USPAP sages say? I believe I can but, don't want to if it would be illegal.
 

Joe Moore

Junior Member
Joined
Jan 30, 2002
Professional Status
Appraisal Management Company
State
Pennsylvania
The answer lies in determining if an “appraiser-client” relationship is still in effect from the prior assignment. The ASB recommends that you should get a release in writing from the prior client before accepting the new assignment in situations like the one you are describing.

See Advisory Opinion 10 for more info.

Joe
 

Ray Ohler

Sophomore Member
Joined
Jan 15, 2002
that both parties have knowledge what you are doing. Sometimes in divorce cases both sides pay 1/2 the fee and we have complete written authorization (from husband/wife AND respective attorneys) to perform the appraisal. Obviously in your case if you have the same effective dates of appraisal the value (if market value) will be the same. Important thing is to have documentation from the parties acknowledging what you are doing and that "private information" may (or may not depending on the exact situation you are in) be disseminated. Other things come into play here but I don't want to "read" into your post.
 

Larry Lyke

Senior Member
Joined
Feb 2, 2002
Pam --

You have an issue that transcends USPooP -- should you choose to become involved thusly.

You can't disclose to either party that you are appraising said property for the other, otherwise you become a potential party to the transaction, as in favoring one party over the other.

If you can juggle these two parties and keep them from coming together or believe that they won't, you might accept the second job.

I wouldn't, but see where it could be done.

If they somehow meet and find out, that's their problem.
 

Ray Ohler

Sophomore Member
Joined
Jan 15, 2002
I'm not going to read into it BUT, I "thought" Pam might have done the appraisal for the estate (prior to auction) and now "POSSIBLY" the buyer. Without getting into ALL the particulars, nothing would prohibit her from doing that. Being very careful, she wouldn't have wanted to appraise "market value" in December at "X" and now in March wind up at "Y" without complete explanation and support for doing so (such as time adjustment, repairs, change in whatever). There is not enough room here to fully go into it. For simplicity reasons, that is MY answer. Now, if conditions are greatly different, that's another matter. We might wind up with a marathon on this one if everyone starts reading into it.
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Personally, I think Joe nailed it in the first resonse!

CYA even if you wouldn't (shouldn't) be in violation!
 

Pamela Crowley (Florida)

Thread Starter
Elite Member
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
It was a very nice thought! The first one would be quite difficult and the second one would be real easy. What nails me here would be the issue of the first one being completed for a potential buyers information and should that client be the highest bidder at the auction, the appraisal then would be used for obtaining a mortgage.

The second client would be wanting the appraisal for the same purpose at the same auction.

:cry: Looks like I only accept the first order and must turn down the second one. So much for 'gravy' in this biz.
 

Richard Carlsen

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Michigan
Pam

You did not say what the two appraisals were for.

My simple answer is yes you can do the same house for two different clients. You do not have to tell either that you did the appriasal for the other unless you have permission from the client to disclose that information to someone else.

My rule is that just because someone hires an appriasal to get an opinion of value on a piece of property, that does not give them any claim to property and to knowledge of any and all appriasals done on the property. Once you have given the opinion of value, they have what they contracted for and are entitled to nothing more. Since you have no interest in the property, you have no ability to assign any rights to the property as far as appraisals go.

My only hesitation would be if the use of the second appraisal would be in conflict or detremental to the use of the first appraisal. You owe it to your first client not to do something that would infure them unless you have their permission.

Do both, charge full for both (you are not deminishing your liability on the second), use the info you gathered from doing the first one and plus any information you may gather from your second visit and analysis. There is nothing in USPAP that says that it is unethical or illegal to get an easy appraisal once in a while.
 

Larry Lyke

Senior Member
Joined
Feb 2, 2002
My post above already concurs with Richard --

With an exception. I say this to point out something:

"My simple answer is yes you can do the same house for two different clients. You do not have to tell either that you did the appriasal for the other unless you have permission from the client to disclose that information to someone else."

The word UNLESS just above changes the meaning in my interpretation: I maintain the the Appraiser would not under any circumstances disclose to Client #2 anything -- even a whisper or a wink -- about another appraisal being extant. THEREFORE, the Appraiser can simply change the Client name, update the appraisal and push "Print."

These kinds of things often produced great anxiety when I was selling real estate -- the really careless way the agents handle information about the Seller and Buyers. Now we have laws that the agents have to declare who they are working for, and it works a little bit better; not much, but it's a hell of a lot easier for the Parties to decide who to sue.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks