Vermont Appraisal Laws

[hastalavista]

They're going to CYA themselves out of the appraisal form business.

I agree.

At what point does the appraiser's responsibility to send a secure document to the client end and the client's responsibility for ensuring the document is secure begins?

Just as a thought experiment:
What if we completed our appraisals on magnet boards with magnet letters.
We have an obligation to make sure that the report that is received by the client (lender) is the report we send.
Because we do our reports with these removable letters, we use a safe delivery system: we put it in a lock box (where's Al Gore?) and ship the report to the lender. We are confident that when they receive the report, it is secure. What they do with it at that point is not our problem.

But then, assume the lender says, "we want you to use our shipper from now on. And, by the way, we don't lock the lock boxes, so you need to acknowledge that your reports are now being sent in a manner that could result in alterations. And, BTW, we are going to charge you for this service."

How can any appraiser be held liable for any report if the delivery system acknowledges that by virtue of the system, the report can be altered, and the question regarding the appraisal occurs after the 5-year retaining period (which is the only requirement the appraiser has, unless they sign an agreement with Landsafe to hold onto the files for 10-years)?

m2:

 

[form1025]

No issues Fredrick,

It would be nice if all states had similar no indemnity laws, .

Illinois does. Yepster!

 

[Frederick R. Ruffell]

So what are the laws exactly that are in force in VT and IL?

 

[Vermonter]

So what are the laws exactly that are in force in VT and IL?

Found it-

"(b) The following conduct by an appraisal management company and the conduct set forth in 3 V.S.A. § 129a constitute unprofessional conduct. An appraisal management company includes agents acting on behalf of the registrant in the acquisition, delivery, or use of a real estate appraisal produced by a licensed real estate appraiser. When that conduct is by an applicant or an entity that later becomes an applicant for registration, it may constitute grounds for denial of a license:
(1) Influencing or attempting to influence the development, reporting, result, or review of a real estate appraisal through coercion, compensation, inducement, intimidation, or other manner intended to affect the independent judgment of a licensed real estate appraiser, including:
(A) Withholding or threatening to withhold timely payment for a real estate appraisal report.
(B) Withholding or threatening to withhold future business or work opportunities from a licensed real estate appraiser.
(C) Expressly or implicitly promising future business or work-related compensation for a real estate appraiser.
(D) Ordering or paying for real estate appraisal services based on predetermined valuations or other conclusions to be reached by a licensed real estate appraiser.
(E) Requesting or suggesting that a licensed real estate appraiser provide an estimated, predetermined, or desired valuation in a real estate appraisal report or provide estimated values or comparable sales prior to completion of the appraisal report.
(2) Altering or otherwise changing a completed appraisal report submitted by a licensed appraiser.
(3) Using an appraisal report submitted by an appraiser for a transaction other than the one for which it was developed.
(4) Requiring an independent appraiser to enter into an agreement requiring the independent appraiser to defend, to indemnify, or to hold harmless the registrant or other third party for the development, use, or contents of a real estate appraisal. This subdivision shall not affect a licensee's or a registrant's professional liability to consumers or to other licensees or registrants.
(5) Using or possessing an independent licensed real estate appraiser's digital signature, seal, or other similar stamp of endorsement.
(c) Registrants shall only transmit an exact copy of the completed appraisal to the client or other intended user.
(d) After hearing, and upon a finding of unprofessional conduct, the board may take disciplinary action against a licensee, applicant, or registrant. Without limitation, disciplinary action may include any of the following:
(1) suspending or conditioning a license or registration;
(2) requiring a licensee to submit to care or counseling;
(3) requiring that a licensee practice only under supervision of a named person or a person with specified credentials;
(4) requiring a licensee to participate in continuing education in order to overcome specified practical deficiencies;
(5) limiting the scope of the licensee's practice.
(e) Appeals from decisions of the board shall be governed by the provisions of 3 V.S.A. § 130a. (Added 1989, No. 264 (Adj. Sess.), § 1; amended 1993, No. 217 (Adj. Sess.), § 14; 1997, No. 145 (Adj. Sess.), § 55; 2007, No. 29, § 49; 2009, No. 103 (Adj. Sess.), § 48.)"

 

[Meandering]

I agree.

At what point does the appraiser's responsibility to send a secure document to the client end and the client's responsibility for ensuring the document is secure begins?

Just as a thought experiment:
What if we completed our appraisals on magnet boards with magnet letters.
We have an obligation to make sure that the report that is received by the client (lender) is the report we send.
Because we do our reports with these removable letters, we use a safe delivery system: we put it in a lock box (where's Al Gore?) and ship the report to the lender. We are confident that when they receive the report, it is secure. What they do with it at that point is not our problem.

But then, assume the lender says, "we want you to use our shipper from now on. And, by the way, we don't lock the lock boxes, so you need to acknowledge that your reports are now being sent in a manner that could result in alterations. And, BTW, we are going to charge you for this service."

How can any appraiser be held liable for any report if the delivery system acknowledges that by virtue of the system, the report can be altered, and the question regarding the appraisal occurs after the 5-year retaining period (which is the only requirement the appraiser has, unless they sign an agreement with Landsafe to hold onto the files for 10-years)?

m2:

Denis,

I am with you on this. If XML files can easily be manipulated, that is one GIANT can of worms. Oh and I bet there are some mortgage brokers peeing themselves that there was no XML files in 2002-2008, as I'm sure many more reports would have been altered if it was easy and did not require 100s of dollars in software to open and change.

And if they are unsecured files, what about your signature?

And, if the GSEs are now not wanting the PDF, where is the proof of what you sent, other than in your files? So it will be a he said, she said argument if something turns up differently down the road.

It's going to be very interesting over the next 10 years.


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