Stock Ownership Disclosure

[DJBanas]

I have talked to a local bank about getting on their appraiser list. My checking & savings accounts are with this bank and my wife and I also just purchased stock in the bank. I know the savings/checking accounts don't give me ownership rights in the bank but the stock does.

Do I need to disclose in the appraisal reports that I own stock in the client?

 

[Mark K]

I have talked to a local bank about getting on their appraiser list. My checking & savings accounts are with this bank and my wife and I also just purchased stock in the bank. I know the savings/checking accounts don't give me ownership rights in the bank but the stock does.

Do I need to disclose in the appraisal reports that I own stock in the client?

When a local bank that I did a lot of work for went public, I purchased some stock because I knew it was a well run bank that never lost money. I continued appraising for them for several years until they were bought out. I did not disclose in the reports that I was the owner of 1/10 of 1% of the outstanding shares. I'd asked the bank controller and attorney if they wanted verbiage in the report re: stock ownership and they replied that they didn't believe it was necessary.

I didn't then and I still don't believe that its a conflict of interest.

I'm sure you'll get other opinions.

 

[Charles Witt]

No, in my opinion. The same would be said that you do not need to disclose you bank there. Unless you own a controlling interest!

 

[DJBanas]

Thanks! My initial opinion was that I did not have to reveal, but never hurts to get other opinions.