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Rush: Need some opinions on these comments

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CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
These are some boilerplate comments I have found in a report I'm reviewing. Please comment.

The function of this report is for financing/lending purposes. Any liability for any unauthorized use of this report
is limited to the amount of the appraisal fee paid. Furthermore, the noted client, as indicated on the top of the
appraisal form, may only use this report. This report may not be given to and may not be utilized by any third
party. The appraisers and appraisal firm will have no obligation to reissue this report to any other party, other
than stated above.
This form (Fannie Mae Form 1004/Freddie Mac Form 70) and attachments developed by Government Sponsored
Enterprises (GSEs) is commonly accepted in the industry. The form includes standard guidance, limiting
conditions and certifications that may not apply to non-GSE transactions. Please be aware that secondary
mortgage market investors may have guidelines that differ from GSE guidelines. xxxxxxxx represents
and warrants that its work products comply with the Uniform Standards of Professional Appraisal practice.
However, xxxxxxx makes no representations or warranties that its work products comply with specific
investor guidelines or GSE guidelines.
Each client must be aware of its own investor guidelines and read this report in full, along with all xxxxxxx assumptions, limiting conditions, and certifications, which may be different than the standard form
limiting conditions and certifications, prior to making a decision utilizing this report. Please advise xxxxxxxxx immediately if you are aware of any errors or changes necessary to make this report comply with client
specific investor guidelines.

I think this may not be an appropriate because it implies that they didn't know the SOW.

FUNCTION (INTENDED USE) OF REPORT:
Pages 4, 5 and 6 of this Fannie Mae Form 1004/Freddie Mac Form 70 (Pages 4-6) provide definitions,
assumptions and limiting conditions, and certifications. While these provisions are binding for most appraisal
assignments, additional clarification of these definitions, assumptions and limiting conditions, and certifications
is provided below. These additional clarifications are legal and binding on all users of this appraisal.
As stated on Pages 4-6, the Intended User is the lender/client stated on Page 1 of Form 1004/Form 70. Please
note that certification #23 allows that the borrower may rely upon the appraisal as part of any mortgage financing
transaction, however this reliance does not apply to any other purpose. The borrower may not use the appraisal
for any other purpose than for a mortgage financing transaction. The borrower may not use the appraisal for
obtaining insurance, litigation negotiation or settlement, partnership dispute, for purpose of establishing a sale or
purchase price or any other purpose of any kind.

The function of this report is for financing/lending purposes. Any liability for any unauthorized use of this report
is limited to the amount of the appraisal fee paid. Furthermore, the noted client, as indicated on the top of the
appraisal form, may only use this report. This report may not be given to and may not be utilized by any third
party. The appraisers and appraisal firm will have no obligation to reissue this report to any other party, other
than stated above.
This form (Fannie Mae Form 1004/Freddie Mac Form 70) and attachments developed by Government Sponsored
Enterprises (GSEs) is commonly accepted in the industry. The form includes standard guidance, limiting
conditions and certifications that may not apply to non-GSE transactions. Please be aware that secondary
mortgage market investors may have guidelines that differ from GSE guidelines. xxxxxx nces represents
and warrants that its work products comply with the Uniform Standards of Professional Appraisal practice.
However, xxxxxxxxx makes no representations or warranties that its work products comply with specific
investor guidelines or GSE guidelines.
Each client must be aware of its own investor guidelines and read this report in full, along with all xxxxxxxx assumptions, limiting conditions, and certifications, which may be different than the standard form
limiting conditions and certifications, prior to making a decision utilizing this report. Please advise xxxxxxxxx immediately if you are aware of any errors or changes necessary to make this report comply with client
specific investor guidelines.

This statement seems to contradict the pre-printed stuff and limit the user to just the client.
 

Metamorphic

Senior Member
Joined
Mar 15, 2008
Professional Status
Certified Residential Appraiser
State
California
Reading that made my head hurt. I really cant figure out what it's trying to accomplish. It looks like he cut and pasted legal stuff till he thought he had enough.

If I were reviewing that I would just say that its "overly convoluted and possibly contradictory, and could be taken to mean x or y depending on how its read".

There's a principal of contract law that says that any vagueness in contract language is decided against the party that offered the language. I'd say that hash leaves him less protected than if he'd said nothing.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
I think he slept through the Fannie Mae accepted intended user part of his CE class. But I'm sure he dazzled some folks with his BS. Wonder what he's afraid of?:unsure:
 

Anthem

Senior Member
Joined
Mar 10, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
Looks like he stole some of this from someone else and did not understand what of most of it meant but thought it was "good Stuff"

Now wait a minute he is limiting the amount of liablitiy to the amount of the appraisal after he stated they were not intended users? Give me that report so I can sue him for the appraisal fee :) Then maybe he can sue them for giving me a third a party the report:)


I agree about the SOW statement that is poorly written and seems to admit a lack of knowledge concerning the clients needs.

Function of the report? How about Purpose.
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
COMPETENCY STATEMENT: The appraisers and xxxxxxxx Inc., have analyzed/appraised
the subject's property type before. The appraisers and xxxxxxxxx Inc. possess the necessary
knowledge and experience to complete this report in conformity with the competency provision of USPAP. The
appraiser signing on the right, supervised the appraisal process, has made a thorough review of the work file
including the finished report, has recommended changes where appropriate, and concurs with the analyses and
value conclusions stated herein.
The appraisers and xxxxxxxxxxxInc. accept full and complete
responsibility for the appraisal report
.

The report is single signed on the left by an AL.
 

Tim Hicks (Texas)

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Texas
Is the opinion of value $350? After all, if that is all the liablity he will accept then his opinion of value should have a ceiling of $350.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
From what I hear of OREA, if you turn it in its treated as BAU. Are you dedicated/committed?:huh:
 

Anthem

Senior Member
Joined
Mar 10, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
Is the opinion of value $350? After all, if that is all the liablity he will accept then his opinion of value should have a ceiling of $350.


Doesn't look like the statements provided here were his :)

This is a good example for another live thread here on the forum where someone asks for your "template", this guy is using other's statements.

How did the rest of the report look?
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
It's an AL with a license in the mid 4000 range (2-3 years?) from 140 miles away doing an appraisal on a complicated property in Coastal Mendocino. He used the MLS which covers the greater bay area and not the local MLS. The other MLS gets about 1 out of 10 or 15 sales in this area. He guessed his way to the high end of the range of value indicators but I think he's $70k too high at $920k. Most of the sales he used I've been in and the one I haven't been in my dad and his assistant appraised for the sale and I have a copy of that report.
 
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