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Who owns the "Appraisal?"

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Don Clark

Thread Starter
Elite Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
"As a disclaimer, the following is my opinion based on recent changes by the Appraisal Foundation on Advisory Opinion 3(A)-3) and Statement on Appraisal Standards No.7(SMT-7) on updating of an appraisal. My opinion is also derived from attendance of the USPAP Instructor Certification Course. However, you should investigate everthing I say and satisfy yourself as to the validity and credibility of what is posted here."

In my opinion, and based on the above statement and the adopted changes to AO-3 and SMT-7, the "Appraisal" is the intelectual property of the appraiser.

How can that be? First, we have to start with 2 basic concepts:

1. The "appraisal" is all the work covered by Std-1. It is the appraisal process based on the scope of work, the intended use for intended users, and supplemental standards(only government agencies have supplemental standards), and all the data, thoughts, musings, inspections, and anything else done in preperation, and evidenced by the work file.

2. The "report" is not an appraisal, it is the report of an appraisal.

Based on 1 and 2 and those items noted prior to 1 & 2, the appraiser owns the appraisal. The client owns the report.

Words like "update", "recertification of value" are meaningless and are merely new "appraisal assignments". So, whatever words are used, the appraiser should treat each request as a new assignment. The new assignment can be attached to, or referrence a prior report. Or, it can be a completely new assignment with the "appraisal" and the appraisers work file as the source of intelectual concepts, and may involve either the same, similar, or a new scope of work.

Example: Lender A orders an "appraisal" from the appraiser. What they want is a report of the appraisers "appraisal". Appraiser completes the assignment and provides a report to lender A. Sometime after that(time frame is not important. Could be a day or may days), Lender B wants the "appraisal" reassigned to him/her. Appraiser informs Lender B that this is a new assignment and ask for $zzz.XX as a fee to complete the new assignment. The appraiser takes care not to include any confidential information relative to Lender A, completes the assignment for Lender B, gets paid and is in full compliance with USPAP that is effective January 1, 2003.

Makes life a lot easire folks, think about it.

Don Clark, IFA
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Thanks Don. This makes sense to me.

Now.... how do we explain that to a LO, Realtor and/or processor?????
 

wyecoyote

Senior Member
Joined
Jan 15, 2002
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Washington
It is simple Pamela you have to take the hooked on phonics course for realtors and processors. They have know idea and it is our job to educate them as to what they really want and need. ie.. how many times do you get a request for a drive by? Does this mean yes drive by the house and say you were there or do they want a 2055 exterior or other report? What about the one that says they want a drive by with interior? Or a "not quite full appraisal"???? Just my thought that we have to educate the client as to what they actually need??? They don't care about the terminology or how it really is they just want a report.

Just my thoughts

Ryan
 

George W Dodd

Senior Member
Joined
Jul 9, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
In my opinion, and based on the above statement and the adopted changes to AO-3 and SMT-7, the "Appraisal" is the intelectual property of the appraiser.

Don,

The next logical question would be: How do we start a class action law suite against unauthorized entities that import our property into their databases??
 

jtrotta

Senior Member
Joined
Jan 16, 2002
Don

perhaps this is why the paperwork notes at the top of the form;


"Uniform Residential Appraisal Report" :?:


8)
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
When I saw the Subject line, my first thought was that is was the intellectual property of the appraiser. Need I say more.

ter
 

Richard Carlsen

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Michigan
Stated the way you did, it makes sense that the appraisal (the conclusion reached following the process required) is the intellectual property of the appraiser. The physical report of that process and the conclusions reached are the property of the client.

Can you do an appraisal without a client and without a report? I think you can. An example would be just estimating the value of a lot as you drive by it for instance. Since we are licensed to appraise, any estimate or opinion of value constitutes an appraisal. It does not require the "reporting" of that conclusion, opinion or estimate in order for there to be an appraisal. Of course in the example I gave, it would take an investigation by the Thought Police to prove that you did not follow USPAP in arriving at the estimate of value of the lot as you drove by it.
 

jtrotta

Senior Member
Joined
Jan 16, 2002
An investigation by the "Thought Police" :roll:


Richard - a true Classic - :lol: :lol: :lol:

8)
 
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