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Is this legal?

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David Bodtcher

Junior Member
Joined
Oct 18, 2002
Professional Status
Appraiser Trainee
State
Utah
I'm doing an appraisal for a company who wants it now!( who doesn't!) I told them yesterday it would be ready for review and they would receive it either tomorrow or monday. Of course they don't understand the word "Monday", and keep saying, "so Ill have that report tomorrow? So I repeat myself numerous times, :not sure when my mentor can review it, if you don't get it tomorrow, you'll get it monday.
Got a call today asking about the appraisal, and said it will not be ready today, but you will get it on monday at the latest. "I was told yesterday that it would be done today" they said. Well, anyway, I'm sure you get the picture and have had plenty of these, cause I seem to get this every appraisal I've ever gotten.
I got a message from this person's manager later saying if they don't get it today, (they didn't) they would start deducting my fee. Anyone know any good ways to fight this?
 

Jeff Horton

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Alabama
Ask them to show you a contract where you agreed to that. And ask them if they are willing to defend their actions in small claims before a Judges. Imply that the last one that did that didn't fair so well.

No, don't lie about it. Just imply you have won this battle before.

If you have a Banking Commission ask them if they would like to have a complaint filed against them.

Be creative, threaten them back.

For every fee reduction make the appraisal that much latter. Fact is they owe you the money they agreed on. I hope you have an order sheet with the fee listed on it. Judges like those.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Why does anyone work for such people? I tell my clients that I will get to them in order in approximately 14 - 21 days (and weather permitting and the borrower allows timely entry into the property). If they =====, I tell them to go somewhere else. And Last year was the busiest I have ever had by 10% or more.

I know an appraiser who does this kind of work and she would never get an appraisal done if she did not put caller ID on it and simply not pick up all the angry calls from pushy pricks passing themselves off in the public as bankers but being some sort of mortgage pimp whose commission depends upon closing the loan regardless whether it is fannie mae compliant. I am confident that Fannie Mae is going to eat one heckofalot of houses one of these days, and they will come after the appraisers, not the mortgage lender who will also feign that they have been defrauded by you, and probably sue you as well.

Life is too short to dance with mortgage originators.
 

Ross (CO)

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
David, ......I certainly do not know when they placed the order or the original understood terms of your arrangement. One would think that your telling them clearly, the first time, that it would be submitted Saturday or Monday, would be sufficient. The incessant call-backs to harass you yet again and to bring in the manager to threaten they will reduce your fee is absolute evidence that they are not ready for prime time. When you say you "got a message" from that mgr. was that a phone recorder message ? I am going to go to Radio Shack and buy up some extra blank tapes and start keeping these gem calls for my files. I saved a classic from about a month ago. Neither he, nor his state officials, would want to hear those words replayed. It appears we are all experiencing these irate calls from frustrated clients, and their words need to be saved for our own defense ! It looks as if you better make sure your mentor/reviewer does what is needed to allow you to fulfill that Monday delivery agreement. That does not mean that the other side is going to pay your fee in any timely manner or with a smile on their face. These scenarios are never resolved quickly in the follow-up payment phase. They will likely feel compelled to "get back at you" and slow-to-no pay is just their tool. Discuss how your mentor/company wants to approach that.....before you send or hand in the report.
 

jtrotta

Senior Member
Joined
Jan 16, 2002
David, if you have that on record (tape) or in writing, I would stop immediately; if you proceed with this job it's at yer own risk now - their already telling you, you may not git paid or will be paid a reduced Fee.

We would demand payment by wire in full, or they could go get someone else to play their game.

Cash At Inspection - it's the only way to fly these days.

8)
 

David Bodtcher

Junior Member
Joined
Oct 18, 2002
Professional Status
Appraiser Trainee
State
Utah
Thanks you guys, ALL excellent advice! I'll let you know how it goes.
 
W

walt kirk

Guest
If they fail to pay yuo the full fee sue them in small claims court, you will get your money and the client will never use you again.
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
David,
Always, always, always give them the later date. 8) If you get it in earlier, it makes you look like gold. :wink:
 

vargasteve

Junior Member
Joined
Jan 21, 2002
Professional Status
Certified Residential Appraiser
State
California
try COD next time..
 
Joined
Jan 16, 2002
Professional Status
Certified General Appraiser
State
Montana
David:

What you describe is an unacceptable condition as described in USPAP AO-19 and is a violation of USPAP. I recommend a reading of AO-19 particularly if you are dealing with the type of company you describe. I once did an appraisal for World Appraisal, then the AMC for Intuit. I was late and they announced it was their rule not to pay for late reports even though it was used. I got nowhere collecting. Fair warning. If the company threatens to reduce fee, stop work, inform them in writing they have imposed an unacceptable condition per USPAP and move on unless they make payment in advance. Do us a favor and post them up on the bad guy web site. DO NOT WORK FOR THESE TYPES unless you have money in advance.


"Specifically, an assignment condition is unacceaptable when it:

"limits the scope of work to such a degree that the assignment results are not credible.

"limits the content of a report in a way that results in the report being misleading."

You are the judge of how long it takes to produce a credible report that is not misleading.

There is also grounds that this action if you agree to a discount violates the management section of ethics provisions of USPAP regarding a stipulated result see:

It is unethical for an appraiser to accept compensation for performing
an assignment when the compensation is contingent upon:


"5. the occurrence of a subsequent event directly related to the
appraiser's opinions and specific to the assignment purpose"

You made an excellent case for delay. To yield without removing the conditions you describe is to violate USPAP.
 
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