Used the wrong form now what?

[Dublin ohio]

You CAN do that... if your software allows it. You CAN also buy sushi in a gas station. In both cases.... you shouldn't.

And I don't

 

[sputnam]

While the FNMA/Freddie Forms are copyrighted, can anyone link me one state board case where an appraiser was sanctioned over using a copyrighted form for non-lender work, please?

State appraisal boards enforce USPAP and any appraisal regulations applicable to their state. They don't enforce copyright laws. USPAP says nothing about which form you are to use in which situation.

 

[alebrewer]

It is poor practice to use the wrong forms - it discredits your work. Sanctions for same are rare because it is a rare case by its very nature. Most complaints originate in the banks and FNMA, FHA, etal.

https://www.mckissock.com/blog/appraisal/non-lender-appraisal-work/

I don't think anyone's argued that its not a best practice. They've argued that it's not that big a deal...

 

[Terrel L. Shields]

They've argued that it's not that big a deal...

And won't be until it gets turned into the state. Then it is a big deal. The fact 99 of 100 won't be turned in does not mean the form is compliant with USPAP nor simple common sense. Obviously the OP has run into a problem.

 

[alebrewer]

And won't be until it gets turned into the state. Then it is a big deal. The fact 99 of 100 won't be turned out does not mean the form is compliant with USPAP nor simple common sense. Obviously the OP has run into a problem.

To another's post - I've never heard of Texas citing anyone for reporting on the wrong form. Not to say it couldn't happen, but it hasn't yet. WRT this particular scenario, I'd be more concerned about potential civil litigation for missing something specific to the F/F forms - not researching prior transfers of the comparables for example.

 

[Reality Check]

I agree. Be easiest route imho. The certs and limiting conditions are not right.

The general form and different certifications and limiting conditions would have been easier.

Narrative report would have worked also.

I have switched to the general form and I took the McKissock Divorce and Estate Appraisals: Elements of Non-Lender Work, CE over the weekend. Thanks for the comments.

 

[Junior Member]

Okay. provide proof that any board has disciplined an appraiser for using a 1004 for private work. I'll wait.

Below is a snippet from the findings in one California BREA citation - the appraiser used a 1004 for a divorce and it was part of the reason for the appraiser's discipline. I've seen dozens of disciplinary cases as well as lawsuits in which the appraiser's use of a 1004 was an issue in the case and was one of the reasons for discipline or liability. When an appraiser does this, there are usually other problems with the appraisal work also. In other contexts, I've seen appraisers have disciplinary matters or legal claims relating, in part, to the use of 1004s for IRS work (conservation easements), property tax appeals, and purchase options. Of course, many appraisers go an entire career using 1004s for all sorts of purposes and never have a problem, because no one raises an objection or files a complaint.

 

[Cob]

To another's post - I've never heard of Texas citing anyone for reporting on the wrong form. Not to say it couldn't happen, but it hasn't yet. WRT this particular scenario, I'd be more concerned about potential civil litigation for missing something specific to the F/F forms - not researching prior transfers of the comparables for example.

I live in Texas and check the TALCB site a couple of times a year to read through the violations that appraiser are accused of commiting, do you also do this and haven't seen this violation before? If you don't go to TALCB site and check the violations, then I'm curious as to how you would know that, "it hasn't yet" I'm not trying to start an argument, but I am just curios how you would know that it hasn't happened.

Like I said, I check once or twice a year, just out of curiosity and I wouldn't know if it has ever happened before, I could EASILY see it being buried in deep with other violations and not easily seen.

 

[alebrewer]

I live in Texas and check the TALCB site a couple of times a year to read through the violations that appraiser are accused of commiting, do you also do this and haven't seen this violation before? If you don't go to TALCB site and check the violations, then I'm curious as to how you would know that, "it hasn't yet" I'm not trying to start an argument, but I am just curios how you would know that it hasn't happened.

Like I said, I check once or twice a year, just out of curiosity and I wouldn't know if it has ever happened before, I could EASILY see it being buried in deep with other violations and not easily seen.

Never said it hasn't happened - I said I haven't seen it. I'm a prior investigator for the TALCB and current mentor for the TALCB. I check the disciplinary actions monthly.

 

[Cob]

I completed an arbitration hearing about a month ago, when the Appraisal District and home owner turned in their evidence, the Appraisal District submitted an appraisal report that was completed on a FNMA 1004 for the Appraisal District, the Appraisal District said they use this appraiser and another on a regular basis to complete appraisal assignments for them.

SInce I was acting in the capacity of an arbitrator and not an appraiser, I simply viewed the rerport as evidence as I always do, I did not send the appraisal report into the state board as that's not my job as an arbirator to do so, but I was wondering why the appraiser would use a FNMA 1004 form, especially if he completes appraisal reports for this CAD on a regular basis.