Inspection reports

[PushinValue]

Hello,

It is my understanding when a report is made subject to a third party inspection, the appraiser has no responsibility to review these reports (they are for UW review).

Can someone point me to the section of the selling guide for reference? I have been searching and cannot seem to locate it....

 

[Terrel L. Shields]

I am not sure you aren't still on the hook to confirm the required repairs.

If the appraiser is not qualified to evaluate the alterations or repairs needed, the appraisal must identify and​

describe the deficiencies and the property must be appraised subject to a satisfactory inspection by a qualified​

professional. The appraisal may have to be revised based upon the results of the inspection. If so, the report​

must indicate the impact, if any, on the final opinion of value. The lender must review the revised appraisal​

report to confirm that no physical deficiencies or conditions that would affect the safety, soundness, or​

structural integrity of the property are indicated. A certification of completion is required to confirm the​

necessary alterations or repairs have been completed prior to delivery of the loan.​

 

[The Bob]

Hello,

It is my understanding when a report is made subject to a third party inspection, the appraiser has no responsibility to review these reports (they are for UW review).

Can someone point me to the section of the selling guide for reference? I have been searching and cannot seem to locate it....

In those cases I would say something long the lines of this (From LIA)

"The certification dated_________, signed by ________, has been deemed acceptable by the client/lender, so the condition has been removed. The appraiser makes no guarantees or warranties regarding the reliability or acceptability of the certification provided. Additional verification regarding the reliability of the certification goes beyond the appraiser's scope of work and expertise."

 

[shrubberyvaluation]

In those cases I would say something long the lines of this (From LIA)

"The certification dated_________, signed by ________, has been deemed acceptable by the client/lender, so the condition has been removed. The appraiser makes no guarantees or warranties regarding the reliability or acceptability of the certification provided. Additional verification regarding the reliability of the certification goes beyond the appraiser's scope of work and expertise."

One time I had the seller write down they inspected it and everything is fine. Told the lender I wouldn't sign off anything from that. Conflict of interest even if they are qualified. If lender wants to sign off they can, but I wouldn't.

 

[The Bob]

Another CYA on things like HVAC is to say "Subject to lender/client receipt of satisfactory repair by qualified 3rd party."

We can attest to things like carpet being replaced, painting, repair of broken window etc..., but when it comes to things like Elect, HVAC, how the h*ll do you KNOW it's been properly repaired?

 

[TerryRohrer]

I had one where the lender (Sun West) had a contractor write a letter stating that the house wrap protected the structure and the siding was simply cosmetic. The lender was ticked that I wouldn't sign off on that. A few years later, the same contractor enjoyed sharing in a settlement with a lender, realtors, and an appraiser in a different deal where the buyer sued because all ignored the lack of foundation under his purchase.

 

[Tom4value]

Hello,

It is my understanding when a report is made subject to a third party inspection, the appraiser has no responsibility to review these reports (they are for UW review).

Can someone point me to the section of the selling guide for reference? I have been searching and cannot seem to locate it....

Don’t know if I can help you on the selling guide
BUT
When you make the appraisal “subject to”, you are recommending an inspection by a third party inspection. The client decides if they want an inspection and if they do, that inspector is their client, not yours.

 

[Tom D]

You don't understand the USPAP definition of appraisal, look it up. A 1004d inspection of a repair is never an appraisal, your dog could do it. The issue of involvement only happens when someone is sued and the attorney decides to blanket every one. But you stated a required repair was completed, but you were not involved in the appraisal itself.

I have seen this question asked over and over again. I don't, and most here don't, do other appraiser's 1004d repair inspections. Why get involved with something that isn't of your work.