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State Investigation; Not Completing A Report

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jnjappraisal

Freshman Member
Gold Supporting Member
Joined
Dec 2, 2012
Professional Status
Certified Residential Appraiser
State
Wisconsin
Recently, I received notice that a homeowner filed a complaint against myself due to not completing an appraisal report. Basically, they were upset that the order was eventually cancelled because I did not get the order completed as quickly as they would have liked. I received paperwork from the state, requesting my work file and informing me of this complaint. My question is this, how can I be reprimanded for report I never completed? There are many reasons why delivery of the report was delayed, with the biggest simply being the complexity of the property. It is interesting also, that the person filing the complaint is also the best friend of our real estate agent that we fired while we were trying to sell our home. All that aside, I am happy to comply with sending them my work file, but I am just curious how USPAP applies here, if at all? All that I had completed before the order was cancelled was inspection of the property.

Thank you
 

bnmappraisal

Elite Member
Gold Supporting Member
Joined
Nov 9, 2011
Professional Status
Certified Residential Appraiser
State
Florida
Check with your E&O provider
 

djd09

Elite Member
Joined
May 20, 2009
Professional Status
Licensed Appraiser
State
Ohio
but but but the homeowner is not the client...it is all confidential...what a gig.

why a state board would waste their time for something like this is beyond reason.

What did the State Board letter say? Did they have any proof there may have been any infraction?
 

hastalavista

Elite Member
Joined
May 16, 2005
Professional Status
Certified General Appraiser
State
California
There is likely no USPAP violation for not completing the assignment.
Your state regulator may also be able to enforce your state's business codes, which may come into play (I doubt it, but that is possible).
As long as you have a workfile (because a workfile is required whether the report was completed and delivered or not) you should be good.

I wouldn't worry about it too much.
I would let my E&O carrier know.

Good luck!
 

reviewbe

Sophomore Member
Joined
Oct 4, 2016
Professional Status
Certified General Appraiser
State
California
Wasn't there some talk in Oregon recently about license exposure for not turning in jobs on time?

Agree that there is no USPAP standard rule problem. Conceivably, you could get into public trust and ethics rule and taking an assignment that you knowingly couldn't finish in the time allowed (not saying you did this, just speaking generally) and that sort of thing. In other words, the front sections of USPAP, all of which would be pretty hard to make a case against an appraiser with especially if the issue is an uncompleted or untimely report. Good move to cooperate and please let us know the result. Your E&O often helps with legal representation in these kinds of matters, so good advice above to make them aware of your issue.
 
D

Deleted member 130081

Guest
The only worry is if you were not competent in the first place and then accepted without disclosing to the client (and the steps you would take) - you did say it was taking a while due to the complexity. I would gather support for competence, such as examples of similar property and assignment types - taking your time ought to be seen as a good thing, not bad. Neither USPAP or the state (as far as I have ever known), requires you finish in a certain amount of time or as the client prefers - that's a business relationship thing. Good luck!
 

djd09

Elite Member
Joined
May 20, 2009
Professional Status
Licensed Appraiser
State
Ohio
Due dates are not assignment conditions. They can cry all they want the homework is late. Might as well go back to high school.
 

hastalavista

Elite Member
Joined
May 16, 2005
Professional Status
Certified General Appraiser
State
California
Wasn't there some talk in Oregon recently about license exposure for not turning in jobs on time?
Yes, but the ASB put a quash on that with an FAQ as I recall.
I think Oregon consequently stopped going down this path (maybe Elliot can chime in?).
 

hastalavista

Elite Member
Joined
May 16, 2005
Professional Status
Certified General Appraiser
State
California
The only worry is if you were not competent in the first place and then accepted without disclosing to the client (and the steps you would take) - you did say it was taking a while due to the complexity. I would gather support for competence, such as examples of similar property and assignment types - taking your time ought to be seen as a good thing, not bad. Neither USPAP or the state (as far as I have ever known), requires you finish in a certain amount of time or as the client prefers - that's a business relationship thing. Good luck!

I just want to emphasize a point on the competency question:
While the USPAP allows the appraiser to gain competency during the assignment (with the appropriate disclosures that fcrecords identifies), the GSEs do not. So, in theory, accepting an GSE-assignment that one knows one is not competent to perform going in is not allowed. However, if one were to believe they were competent at the start, and discovered that the assignment was more complex than originally believed, then stopping the appraisal is allowed and is in compliance with the USPAP and GSE assignment-conditions.

If the assignment is taking longer than planned due to complexity, that shouldn't be a USPAP violation.

Again, good luck!
 
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