What would you do?

[Rob Lentz]

I completed 1004 for a property a couple of months back (April) for MB client (one shot wonder)

I figured the deal was likely to die due to the subject being:
a.) 1975 on chasis mod,
b.) not owner occupied, and
c.) the client was looking for a place to put it in secondary market (not sure there is such a place)

Today I recieved an email from a local lender who is apparently in possession of the appraisal and likely working an in-house (portfolio) loan on it (which is what they should've done in the first place probably). They are asking me to change the legal description.

The one I used was somewhat abbreviated and taken from the tax role. Both say the same thing essentially, like Tom-Ato vs. Tom-Otto.

I realize they are not my client.
If they want to rely on the appraisal I completed for the original client, should I care?
My question is how would you handle this? I have not communicated back with them as of yet, because I want to think this through in light of USPAP confidentiality rules, etc.
My thought is that I really cannot make any changes to the original appraisal without it becoming a new assignment for a new client, with a new effective date...and of coarse a new fee. Again, what would you do?

 

[Randolph Kinney]

I realize they are not my client.
If they want to rely on the appraisal I completed for the original client, should I care?
My question is how would you handle this? I have not communicated back with them as of yet, because I want to think this through in light of USPAP confidentiality rules, etc.
My thought is that I really cannot make any changes to the original appraisal without it becoming a new assignment for a new client, with a new effective date...and of coarse a new fee. Again, what would you do?

I would politely tell them they are not your client. However, if they really want an updated appraisal and with their name as client, you will be happy to help them ... after they order the appraisal and a new client relationship is established.

 

[chicago guy]

This is not your client. You should not and can not make this change without a new engagement agreement, at which point it becomes a new job. It may be a good time to solicit this local lender for work.

 

[Jill Kinnaird]

Do not discuss anything about the prior appraisal. Don't even acknowledge that you've done one. Tell them you'll look forward to obtaining their request for a new appraisal order stipulating their specific requirements and your COD fee structure.

 

[stefan olafson]

I agree with Jill. What appraisal? I've never done or seldom done any work for you Banker Person, certainly not in the past six months. I've worked for a number of other clients such as your self in the past and all are relatively happy with my professionalism.

USPAP does not allow me to disclose who I've appraised for and what I've appraised.

I'd love to come by your office and discuss the possibilities of helping you out with an appraisal based on a mutually agreed upon scope of work...

Thanks

 

[Mztk1]

Just to throw out an option, you might say:

I can't comment on the prior appraisal but if you supply me with the legal description you have I can confirm whether it is accurate or not in a letter, which if you choose you can attach to the prior report. But if that is not sufficient than in order to help you directly you have have to engage my services to appraise the property with you as my client.

 

[stefan olafson]

Jim,

I don't think that would be kosher! Yes, you did the previous appraisal but for a different client. Providing them a letter they can attach to the report completed for another client?

Maybe have the previous client request the corrections in the legal description? Maybe the cost of a title opinion revealing the correct legal is less than what you'd charge for that letter or a new appraisal?

New Client/New Appraisal

 

[Scott R Marshall]

I like Jim's response. I don't know how the new client would be appreciative of you basically saying "I'm not telling you a thing about the prior appraisal and if you want my help give me some additional cash and we can then talk." I prefer the more diplomatic approach Jim suggested. Confirmation on an appraisers part that a legal description for a particular property is correct, done as a courtesy, which the client then can either attach to the appraisal report or simply make a business decision to go forward. No acknowledgement of the prior appraisal needs to be stated, just doing clerical research for somebody on a property as an appraiser (or a caring citizen). If the client needs changes done to the appraisal, I apologize that USPAP and in some cases state law do not allow me to do that (how that goes over who knows) and a second appraisal can be done for a lower fee (or same, of higher, or none). Good luck!!!

 

[Lee Lansford]

I completed 1004 for a property a couple of months back (April) for MB client (one shot wonder)

I figured the deal was likely to die due to the subject being:
a.) 1975 on chasis mod,
b.) not owner occupied, and
c.) the client was looking for a place to put it in secondary market (not sure there is such a place)

Today I recieved an email from a local lender who is apparently in possession of the appraisal and likely working an in-house (portfolio) loan on it (which is what they should've done in the first place probably). They are asking me to change the legal description.

The one I used was somewhat abbreviated and taken from the tax role. Both say the same thing essentially, like Tom-Ato vs. Tom-Otto.

I realize they are not my client.
If they want to rely on the appraisal I completed for the original client, should I care?
My question is how would you handle this? I have not communicated back with them as of yet, because I want to think this through in light of USPAP confidentiality rules, etc.
My thought is that I really cannot make any changes to the original appraisal without it becoming a new assignment for a new client, with a new effective date...and of coarse a new fee. Again, what would you do?

New assignment.

 

[Webbed Feet]

I prefer the more diplomatic approach Jim suggested. Confirmation on an appraisers part that a legal description for a particular property is correct,

Gosh, not to be a butthead or spoiler, though I am a featherhead... ....

But I thought "confirmation" a legal description is correct or not would best be left in the hands of a title company, professional surveyor, or a real estate attorney. .. Somehow I just sorta think the most an appraiser should do is say ... "Yeah, this is the one on the last recorded deed. I can't promise or guarantee it is correct. Sorry, ain't my job to make legal determinations." So naming our source for a legal description, and making a legal confirmation of one to be correct or not, are two vastly different acts. I rather think appraisers would be well advised to stay away from the later act.

Webbed.