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How many are willing to take Action!

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Roscoeman

Thread Starter
Member
Joined
Aug 18, 2005
Professional Status
Certified Residential Appraiser
State
Oregon
I would like to challenge as many Oregon Appraisers who are willing to step up to the plate to forward the new user guidelines for Appraisalport to their E&O.

Even if you do not do any work through Appraisalport, go to their website, copy the user guidelines and forward them to your E&O and see if they approve of them.

If we do not stand up for ourselves, no one will!

Sent them to my E&O today. Hopefully, if enough appraisers do this E&O companies may take a stand.

Let's all help each other out.

Post your findings ASAP.

Thanks...
 

Margaret Treat

Sophomore Member
Joined
Jan 25, 2007
Professional Status
Certified Residential Appraiser
State
Oregon
Roscoeman,
Who is your E&O carrier? I have General Star/Landy and although I don't use Appraisalport I would be happy to send it in and see what they say. Margaret
 

Roscoeman

Thread Starter
Member
Joined
Aug 18, 2005
Professional Status
Certified Residential Appraiser
State
Oregon
I have Intercorp.

There are several of my appraiser friends down here in Medford that are sending it to their E&O.

If we get enough concern with E&O, then maybe they will start drawing attention to someone that cares and will start doing something about this.

Think about if thousands of appraisers around the nation, all sent this to their E&O.

Could we make a change? I don't know but I am willing to try.

Thanks.
 

Laurie E

Sophomore Member
Joined
Jul 16, 2007
Professional Status
Certified Residential Appraiser
State
Oregon
I think the following from FREA is going to be a pretty typical response to this issue:

“E & O coverage is the same as it always has been and is written in your policy. Just because YOU sign something that says YOU will INDEMNIFY someone else for anything (in this case, Appraisal Port) does NOT obligate an insurer to cover YOUR promises to a third party. If you think about it, why on earth should they ? Suppose you agree to give your wife $100,000 in the event you get sued, you would not expect your insurance carrier to cover you for that promise made to your wife.

Another thing, of course the insurance carrier will not cover you for arbitration expenses which force you to go to Mississippi to be heard. The terms of your policy give the carrier the full right to determine how, when and where your claim is handled. Again, just because YOU agree to give up jurisdictional rights does NOT obligate any insurance company to cover you based on your own promise to a third party. The appraisal port agreement is over burdensome and totally one-sided. They are clearly trying to get you to pick up the tab for any mistakes made by them. There is no reason why an insurance carrier should take on EXTRA risk without any additional premium. You should run it by an attorney if you are unsure of your legal rights concerning this agreement.

You can sign away promises to other parties, but you cannot expect an insurance carrier to cover you for costs incurred by your own independent promises to others.”


In other words, if you sign the agreement, you're not covered and the insurance carrier doesn't really care - they'll just deny the claim. So our E&O carriers might not be willing to do anything but it seems to me the companies using AP would be interested to know anything delivered through AP is uninsured. Bummer for them, huh?
 

McPheeters

Junior Member
Joined
Feb 10, 2002
Professional Status
Certified Residential Appraiser
State
Oregon
[FONT='Arial','sans-serif']Just recieved this from my E&O:[/FONT]
[FONT='Arial','sans-serif'][/FONT]
[FONT='Arial','sans-serif']We are not in a position to offer legal advice, but do recommend that you have the agreement reviewed by an attorney, particularly if you have concerns about the group. Sections 7 and 9 would appear to need a close review. (I have a particular aversion to agreements that shout at you by putting text in all caps!). Your attorney can advise you about any sections that might be troublesome.[/FONT]
[FONT='Arial','sans-serif']
Regards--

Looks like trip to the attorney's office is in order.......[/FONT]
 

Laurie E

Sophomore Member
Joined
Jul 16, 2007
Professional Status
Certified Residential Appraiser
State
Oregon
Paul,

Your E&O carrier should be able to answer the question, "Am I covered if I sign this contract?" Seems to me it's an insurance issue, not a legal question for your attorney. Are you thinking they're pointing out Sections 7 & 9 because they feel there may be an actual legal issue with the contract?
 

McPheeters

Junior Member
Joined
Feb 10, 2002
Professional Status
Certified Residential Appraiser
State
Oregon
Paul,

Your E&O carrier should be able to answer the question, "Am I covered if I sign this contract?" Seems to me it's an insurance issue, not a legal question for your attorney. Are you thinking they're pointing out Sections 7 & 9 because they feel there may be an actual legal issue with the contract?[/quote]


I have asked that specific question of them; am awaiting a reply. Have also sent it to my attorney for review.

That is my take on it, but what do I know? I'm just an appraiser........and I dont like all caps either!
 

Laurie E

Sophomore Member
Joined
Jul 16, 2007
Professional Status
Certified Residential Appraiser
State
Oregon
LOL. That might be what they're counting on.

I'm hearing rumblings about there being legal prescedent for this type of one-sided contract being...what's the word? Not illegal - perhaps "unenforceable" is the right term. In other words, AP holds all the cards and many appraisers are in the position of either signing the contract or going out of business. Kind of an undue pressure safety net. I'll keep my ears open for the specific cases cited.
 

McPheeters

Junior Member
Joined
Feb 10, 2002
Professional Status
Certified Residential Appraiser
State
Oregon
I too have been hearing the word "unenforcable" used as it applies to this type of "user agreement", however that may be on a State by State basis.
 

Roscoeman

Thread Starter
Member
Joined
Aug 18, 2005
Professional Status
Certified Residential Appraiser
State
Oregon
Laurie and Paul,

Thank you so much for all the information.

There's much more to learn about this subject. And it will put alot of appraisers out of business.

Thanks.
 
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