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Restricted Use?
- Thread starter froggy8
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BRCJR
Elite Member
- Joined
- Sep 20, 2005
- Professional Status
- Licensed Appraiser
- State
- Virginia
Restricted Use is restricting the use only. You can do a Restricted Use on the White House if you like.
You can put enough information in one to actually qualify it as a Summary or Self-Contained and still label it "Restricted Use".
I would not want to do a Restricted Use that had limited information included for an Attorney for a divorce or for Estate purposes.
I think a Summary following IRS guidelines would be warranted for Estate and I would hate for the other party of the divorce to have an appraisal that made mine look Mickey Mouse to the Judge.
Terrel L. Shields
Elite Member
- Joined
- May 2, 2002
- Professional Status
- Certified General Appraiser
- State
- Arkansas
A restricted report that is presented as evidence is insufficient under "discovery"
and you'd be in hot water. So why does the client want a "restricted use" appraisal?
If he thinks it costs less, then them no, it does not cost less.
If they think it is harder to nitpick than a summary, then Yes, it probably is. But is it sufficient to inform the client of the value AND be transparent to a court? No, probably not.
If they want it so that they can simply throw it away if it isn't what they expect, then simply label the report CONFIDENTAL TO THE ATTORNEY
Do a bare bones summary. Reference "stuff" that is on public records like demographics, etc. rather than explicitly write it out. Keep it simple.
and you'd be in hot water. So why does the client want a "restricted use" appraisal?
If he thinks it costs less, then them no, it does not cost less.
If they think it is harder to nitpick than a summary, then Yes, it probably is. But is it sufficient to inform the client of the value AND be transparent to a court? No, probably not.
If they want it so that they can simply throw it away if it isn't what they expect, then simply label the report CONFIDENTAL TO THE ATTORNEY
Do a bare bones summary. Reference "stuff" that is on public records like demographics, etc. rather than explicitly write it out. Keep it simple.
froggy8
Freshman Member
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- Apr 14, 2009
- Professional Status
- Certified Residential Appraiser
- State
- Pennsylvania
reporting
I meet with him to get my LLC setup and he asked me about doing appraisals for him. He has had previous people do appraisals that have all retired or are very close to retiring. He said they charged him $250-325. I told him my fee is $375. After discussing further I came to the conclusion they were also RE companies and were then getting the listing of the property. He told me he literally only needs a letter explaining the conclusion not all the other stuff we include. I told him I still have to do all the leg work the only difference is in reporting. I'm not sure where to go from there other than just say it's $375 for me to do a summary appraisal because I am not getting the listing. I also know they are not allowed to base their fee on getting the listing so I was kinda shocked when he told me that.
I meet with him to get my LLC setup and he asked me about doing appraisals for him. He has had previous people do appraisals that have all retired or are very close to retiring. He said they charged him $250-325. I told him my fee is $375. After discussing further I came to the conclusion they were also RE companies and were then getting the listing of the property. He told me he literally only needs a letter explaining the conclusion not all the other stuff we include. I told him I still have to do all the leg work the only difference is in reporting. I'm not sure where to go from there other than just say it's $375 for me to do a summary appraisal because I am not getting the listing. I also know they are not allowed to base their fee on getting the listing so I was kinda shocked when he told me that.
Michigan CG
Elite Member
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- Nov 1, 2006
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- Certified General Appraiser
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- Michigan
No can do a restricted report for an attorney for divorce. Look up the definition.
BRCJR
Elite Member
- Joined
- Sep 20, 2005
- Professional Status
- Licensed Appraiser
- State
- Virginia
I do not think it would be best practice but, help me understand why it "cannot" be done.
The definition itself does not preclude the use for an attorney for divorce.
Renee Healion
Elite Member
- Joined
- Feb 21, 2004
- Professional Status
- Certified Residential Appraiser
- State
- Connecticut
You could do a Restricted Use Report for your lawyer client if he were the only intended user . Since there are other intended users besides the client in estate or divorce cases, you cannot use it.
Mike Kennedy
Elite Member
- Joined
- Sep 28, 2003
- Professional Status
- Certified Residential Appraiser
- State
- New York
"for estate or divorce purposes" - both intended uses require OTHER PARTIES to read appraisal reports submitted by the Attorney.
Michigan and Renee are correct - "no can do"
STANDARD 2
U-28 USPAP 2012-2013 Edition
816 The Restricted Use Appraisal Report is for client use only. Before entering into an 817 agreement, the appraiser should establish with the client the situations where this 818 type of report is to be used and should ensure that the client understands the 819 restricted utility of the Restricted Use Appraisal Report.
820 (ii) state the intended use of the appraisal;34
Comment: The intended use of 821 the appraisal must be consistent with the limitation 822 on use of the Restricted Use Appraisal Report option in this Standards Rule (i.e., 823 client use only).
froggy8
Freshman Member
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- Apr 14, 2009
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- Certified Residential Appraiser
- State
- Pennsylvania
Renee and Mike...that is exactly what I was thinking which is why I started this thread. I wanted to be sure I was understanding USPAP correctly. What would be the suggestion to offer the attorney then? I am assuming the only way to handle this would be a Summary Report and report the same way I would for a regular person ordering an appraisal. Even though he doesn't need all the included documents I need to include them to cover my butt. Right??
Renee Healion
Elite Member
- Joined
- Feb 21, 2004
- Professional Status
- Certified Residential Appraiser
- State
- Connecticut
Tell him you have to do it to minimum standards which require you to communicate the results of your appraisal so that all the intended users can follow the process you used to get to your opinion of value. A letter won't cut it. Say you cannot comment on others not following the minimum requirements. (I love saying minimum, you say it too.)
He may not need "all the documents" but you do because they support your opinion. Offer a Summary Report in a non-lending format. For a regular price. Because you are a professional. Say you are sure he will understand, being a professional too.
In other words, don't take any crap from a cheap weasel and feel free to employ shame.
He may not need "all the documents" but you do because they support your opinion. Offer a Summary Report in a non-lending format. For a regular price. Because you are a professional. Say you are sure he will understand, being a professional too.
In other words, don't take any crap from a cheap weasel and feel free to employ shame.
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