SOW: Non-Intended Use/User

[ZZGAMAZZ]

Is it sufficient to the state the intended use in the SOW, or should one also state the non-intended use?

For example, should an appraiser indicate that "the report is not intended for mortgage lending purposes" if the intended use is for an estate settlement matter.

 

[Randolph Kinney]

Is it sufficient to the state the intended use in the SOW, or should one also state the non-intended use?

For example, should an appraiser indicate that "the report is not intended for mortgage lending purposes" if the intended use is for an estate settlement matter.

You would be smart to include such a statement. It makes it very clear to your client what the use is and is not.

 

[Hamlet]

I would state what the intended use is and that no other intended use is permitted.

 

[Mister Ed]

Here is how I handle ANY assignment: I state the intended purpose (even for Fannie Forms--which means I am repeating what the forms say). I also add that the report has no other intended uses reported the the appraiser by the client. If it is for an estate settlement matter, I state that the report is intended for use in the settlement of an estate and that the named client is advised that it would be appropriate to contract additional appraisal services for different uses... something to that nature. I do have boilerplate comments for various uses.

 

[The Warrior Monk]

It is only necessary to state the intended use.

FWIW, I do not use lending forms for nonlending purposes. Between the stated intended use, a executor/executrix or attorney being named as the intended user, a nonlending form, and a retrospective date of value, someone has to be asleep at the wheel to allow such a report to be used for lending purposes.

 

[Terrel L. Shields]

someone has to be asleep at the wheel to allow such a report to be used for lending purposes.

happens all the time though. I got a call a while back from some lender about a report and turns out it was an estate appraisal I had done for an attorney but the bank didn't want to pay for a new appraisal so they took it, then wanted me to put their name on it, of course.

 

[Fred]

Is it sufficient to the state the intended use in the SOW,

You should state (or summarize?) to the degree necessary to make your point. I don't know if it helps, but keep in mind, SOW is not a report section. You make statements "in" a report, not "in" the scope of work

 

[Webbed Feet]

Is it sufficient to the state the intended use in the SOW, or should one also state the non-intended use?

For example, should an appraiser indicate that "the report is not intended for mortgage lending purposes" if the intended use is for an estate settlement matter.

Which one, single, non-intended use would that be? If a person had to select from all the possible non-intended uses only one, how does that person decide the one?

Webbed.

 

[The Warrior Monk]

happens all the time though. I got a call a while back from some lender about a report and turns out it was an estate appraisal I had done for an attorney but the bank didn't want to pay for a new appraisal so they took it, then wanted me to put their name on it, of course.

I know it is attempted. A common one is for when reports prepared for a divorce cases. One of the parties wishes to buy the other party out, and sends the report to a lender. However, the lender can't use the report for all of the reasons that I stated above, plus the lender didn't order the report. Also, the applicant is not my client, there attorney is.

Other reports I do, even for nonlending purposes, are used for other nonlending purposes. For example, reports for estate planning are supplied to the tax assessor to get real estate taxes reduced. The appraiser can't stop these uses, even if they are specifically prohibited in the report.