Restricted Report Format For Divorce

[Mark K]

In a typical mortgage appraisal, the appraiser is aware that the borrower will get a copy of the report - and may even intend to use that report to satisfy a clause in the purchase contract stating that the home must appraise for the sale price - but that does not make the borrower an intended user. There is only one way to become an intended user. Intending to use the report does not make one an intended user.

]

Nobody is saying that you have to include all parties as intended users in the body of the report.

But..

FAQ
266. RESTRICTED APPRAISAL REPORT AND THIRD PARTIES
Question: I have been asked by a client to prepare a Restricted Appraisal Report that he plans to provide to another intended user. Does USPAP allow me to use this report option in such a circumstance?

Response: No.

The Comment to Standards Rule 2-2 states:

"When the intended users do not include parties other than the client, a Restricted Appraisal Report may be provided.
In other words, this particular report option may only be used when the client is the only intended user.

The reason underlying this use restriction is that the client is assumed to have a sufficient level of knowledge to enable him or her to understand a report of this type. If other intended users were to be given such an abbreviated report, they could easily misunderstand it and potentially be misled."

IMO, this indicates that if you are aware that the report will be used by others, whether named as Intended Users or not, then a Restricted Report is not appropriate. If you give a report to an attorney in a divorce, its a VERY good chance that others will read and use the report; you are (or should be) just as aware of this fact as the appraiser for a mortgage is aware that the borrower may get a copy of the report. If you provide an appraisal for a divorce, much more often than not, there will be other users whether or not you acknowledge them as 'intended users' in the report.

You don't have to name someone as an intended user to know that they will be a 'user' of the report. Mortgage or divorce, I don't believe that a Restricted Report is the correct format. YMMV.

 

[Mark K]

"If I had known you existed, I would have hired you first and you would never have come within a mile of this courthouse today."

interesting side note....

About 30 years ago Eli Lily wanted to expand and in the process needed a couple of city blocks of houses removed via eminent domain with the help of the city.

Before the plans were announced, Eli Lily contacted every appraiser in town and paid them a retainer fee to work for them for the next couple of years. That way, no appraiser from the area could work for the homeowners.