If as an appraiser, you produce a credible, supported, and USPAP compliant appraisal, why are you concerned who reads it and what decisions are based on it?
First of all I agree, 100% with the point you are trying to make.
But I believe there is only one legitimate answer to your question, which is: as a businessman I consider it legitimate practice for me to attempt to limit my liability (legally, of course) to the extent the users of my work (the public/society)
allow me to limit that liability.
Restated, if I can come up with an argument that no one other than the client has the right to rely on my work, and I can convince the public/society to accept that argument, then that is exactly what I'm going to do.
I believe, with no reservations, that the above is exactly where the authors of USPAP have taken us. Intended use, intended user, scope of work, and confidentiality are all concepts that have assisted appraisers in escaping the consequences of their actions. I have said many times that many appraisers hide behind the client; they roll the dice, hope the loan never goes into foreclosure and pray the appraisal never sees the light of day.
But the courts are a higher authority. In the early decades of the public accounting profession their equivalent of our TAF insisted the accountant rendering an opinion on financial statements in accordance with GAAP had no responsibility to detect accounting fraud. To make a long story short, the courts time and time again said "oh yes you do." Unfortunately the appraisal profession is in its infancy.
As an appraisal professional, I believe anyone should be able to rely on my work, as long as my work is communicated to them in its entirity, regardless of the intended use.
Thanks for raising the question.
MP
