Homeowner is threatening to sue me?

[Lee Lansford]

Hello,
I just received a phone call from a homeowner that I did an appraisal at his home for a mortgage company 2 months ago.

He wants a copy of the appraisal, and I told him I couldnt give him a copy because he was not my client.

He said " i paid you for the appraisal at the door, so I am your client".

How do I explain to him that even know he paid me for the appraisal I cant give him a copy?

I understand where he is coming from, but I do not know the correct way to explain it.

Please Help.
Thanks,
Joey

Others will give you suggestions as to how to handle this matter at this late date.

In the future, be certain that you pre-empt the post-appraisal request via the signed receipt (the receipt containing language covering this matter) at the time of payment.

If you are going to operate a business, you have to treat it as a business.

 

[Bama Bayou]

Just tell the homeowner that there are laws which prevent you from giving them a copy of the appraisal but that the same laws REQUIRE their lender/broker to give them a copy.

That's what I tell them and it works every time.

 

[PBKlingensmith]

Thank you Ms Smokey for the framework..

 

[EVAUSA]

Find out what your state commerce laws are. In my last USPAP class the teacher told us a case where the appraiser was sued, exactly the same thing, and lost because in that state the commerce law entitles the consumer to the product if they paid for it, NO MATTER WHAT USPAP says, a judge doesn't have to adhere to USPAP. I feel for you. I'd try to get the lenders permission to release the report to them and save yourself a headache.

 

[Couch Potato]

Do try to work with your client to get them a copy. You will likely lose in court if it goes that way. You could work with the homeowner to get a judge to order you to give a copy. USPAP allows giving a copy of a report in compliance with a court order.

 

[Functional Obs]

Hello,
I just received a phone call from a homeowner that I did an appraisal at his home for a mortgage company 2 months ago.

He wants a copy of the appraisal, and I told him I couldnt give him a copy because he was not my client.

He said " i paid you for the appraisal at the door, so I am your client".

How do I explain to him that even know he paid me for the appraisal I cant give him a copy?

I understand where he is coming from, but I do not know the correct way to explain it.

Please Help.
Thanks,
Joey

1 - If he sues you in the state of VA, he'll win. It's a case of the law coming before USPAP.

2 - Luckily, most people who threaten to sue over the phone never sue.

 

[Functional Obs]

Just tell the homeowner that there are laws which prevent you from giving them a copy of the appraisal but that the same laws REQUIRE their lender/broker to give them a copy.

In Virginia there are no laws preventing him from giving the HO a copy. In fact there are laws that require him to give a copy. Sure, it's nice to get the LO to give that copy (as there's also a law requiring that), but it might not always be feasible.

If I had written proof that the HO requested a copy and did not receive it, and if that same bank/lending institution dogged me when I called them up, I'd put two documents in the file and shoot a copy to the HO.

There's no reason to go to court over this in VA. It's already been done here and it's a guaranteed loser.

 

[Ryan Bailey]

Has anyone ever heard of Privity of Contract?? It's basic contract law!

"Privity is that connection or relationship which exists between two or more contracting parties." First Nat'l Bank of Windsor v. Gilbert Marshall & Co., 780 P.2d 73, 75 (Colo. Ct. App. 1989). It arises from the mere fact of entering into a contract. 13 Samuel Williston & Richard A. Lord, Williston on Contracts � 37:1 (4th ed. 2000). Generally, privity of contract must exist before one may seek to enforce or defeat the contract. See Stratton v. Inspiration Consol. Copper Co., 140 Ariz. 528, 683 P.2d 327 (App. 1984) (lack of privity precluded breach of contract claim); Hatton v. Greenberg, 9 Ariz. App. 327, 451 P.2d 905 (1969) (usury defense not ordinarily available to noncontracting party); Stephens v. Brekke, 977 S.W.2d 87 (Mo. Ct. App. 1998) (non-party cannot claim contract unenforceable); Hatcher v. Harleysville Mut. Ins. Co., 225 S.E.2d 181 (S.C. 1976) (stranger to contract precluded from asserting its unenforceability).

The Hatton v. Greenberg case is directly related to appraisal and had been used as a case precident in VA several times. It's basic contract law. Don't get this guy all worried about getting sued. If he gives the appraisal to the homeowner then he can be sued on the other side by the lender and probably get a complaint filed against him at his board.

 

[Carnivore]

Do you really want all the headaches that come from being a uncooperative
jerk.

Do what ever you can to help the homeowner get his copy legally in a way that does not include you.

I learned this the hard way and had to defend a formal complaint from the consumer with my appraisal board. This episode in my life took 9 months and resulted in a dismisal. I choose only to tell the HO he had to get his info from his lender. I washed my hands and paid the price.

Ask him why he needs his copy. If he is going to a new lender, then suggest to him that his new lender can get a free appraisal from you and his copy via his new lender.

 

[Metamorphic]

I have a 2 page form that I hand the owner when doing an owner occupied. One page is a kind of FAQ that includes the why cant I have my report information. The second page is a questionnaire that I have them fill out and sign that asks them about their property.

The FAQ heads off questions, and the questionnaire keeps them busy for 10 or 15 which helps avert the tag-along owner syndrome. Occasionally you'll get some info on the questionnaire that will actually be helpful by cuing you to things you might not have found out otherwise.