What has to be disclosed to the appraiser?

[JasoninAK]

Okay everyone I am sorry for a dumb question and discussion. I inspected a house recently that I had concerns over and was begrudgingly given an engineer's report that dealt with the issues of concern.

I have heard a few different things regarding what has to be disclosed to the appraiser and I thought I knew my stuff but I am being told all sorts of different things now and have confused myself greatly.

Anyone have a link to information on what has to be disclosed to the appraiser? The appraiser's where I live have access to MLS and the disclosure documents attached and more and more Realtor's are deleting the disclosures and doing everything they can to not let the appraiser get ahold of them.

 

[J Grant]

As far as I know (unless a state has a specific law),, RE agents are under no obligation to disclose anything to appraiser. Agents typically do have an obligation to disclose defects to a byer that are known to them. ( as does an owner in many states per law, their obligation is to the buyer, not the appraiser)

 

[Lee Lansford]

...


Anyone have a link to information on what has to be disclosed to the appraiser? The appraiser's where I live have access to MLS and the disclosure documents attached and more and more Realtor's are deleting the disclosures and doing everything they can to not let the appraiser get ahold of them.

In a situation where seller disclosure statements are mandatory, demand a copy for your subject.

Simple. Done.

 

[George Hatch]

All you can do is ask, and all you can report is what you know. Even if what you know is limited to them refusing to disclose.

The assumptions that follow will be based on that. All assignments have assumptions, and limitations that go with them. Some just have more than others.

 

[CANative]

https://www.fanniemae.com/content/guide/selling/b4/1.1/05.html

Disclosure of Information

Any and all information about the subject property that the lender is aware of must be disclosed to the appraiser. The appraiser must determine if the information could affect either the marketability of the property or the opinion of the market value of the property.
Sales Contract Information

All appropriate financing data and sales concessions for the subject property that will be or have been granted by anyone associated with the transaction must be disclosed to the appraiser. Typically, this information is provided in the sales contract. Therefore, the lender must provide, or ensure that the appraiser is provided with, a copy of the complete, ratified sales contract and all addenda for the property that is to be appraised. If the contract is amended, the lender must provide the updated contract to the appraiser to ensure that the appraiser has been given the opportunity to consider any changes and their affect on value. If the lender is aware of additional pertinent information that is not included in the sales contract, the lender must provide this information to the appraiser.
Financial Information

The list below includes items that must be disclosed, if applicable:

settlement charges,

loan fees or charges,

discounts to the sales price,

interest rate buydowns,

below-market-rate financing,

credits or refunds of borrower expenses,

absorption of monthly payments,

assignment of rent payments, and

any other information not listed above that impacts property value.

Property Information

The list below includes items that must be disclosed, if applicable:

condo or PUD fees;

non-realty items included in the transaction;

any environmental hazard in or on the subject property or in the vicinity of the property that the lender is aware of or learns from the borrower, the real estate broker, or any other party to the transaction (see B4-1.4-08, Environmental Hazards Appraisal Requirements); and

any other items that affect the safety, soundness, or structural integrity of a property of which the lender may be aware.

Related Announcements

The table below provides references to the Announcements that have been issued that are related to this topic.
Announcements Issue Date
Announcement SEL-2014–03 April 15, 2014
Announcement 08–30 November 14, 2008

 

[Lee Lansford]

If the seller (or listing agent) of the property that you are appraising (due to current contract of sale) for lending use will not provide you with a copy of what is a mandatory (from seller to buyer) "seller's disclosure" statement--why would you accept the assignment???!!?

 

[J Grant]

CANative, your post relates to items the lender is aware of that the lender must disclose to the appraiser, not what the REALTOR /agent must disclose to the appraiser (agents typically do not have to disclose anything, we are not the agent's client and they have no fiduciary relationship with us)

Will an ethical agent choose to disclose some things to an appraiser? Yes, and I always thank them for it. But they are typically under no obligation to do so.

 

[CANative]

Okay. Now readers have both (I'll be a lot of appraisers didn't know about the lender responsibilities.)

http://realestate.msn.com/sellers-6-disclosures-you-must-make-or-it-could-cost-you

 

[J Grant]

I find a lot of what seller disclosed to buyer makes its way into the sales contract.

 

[andrew81]

hmmm ive never thought about it until now. in my market the 3 Realtor® offices all use the same exact forms and the sellers disclosure is always attached to the sales contract.

except for one broker that is not a Realtor member. his contracts are very short, often using different forms, and never include the sellers disclosure.