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Why New Inspection For New Appr?

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Jeff Horton

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Alabama
Just had a discussion and I don't know the answer. We started talking about transferring one appraisal to another lender and that led to a discussion about doing a 2nd appraisal on the same property. My thinking was we had to do a new appraisal but I can't find that in USPAP. Looks like we can re-assign with permission in AO-10 but that lead to something else.

Many of us have said the simple thing to do if a second appraisal is needed is do another inspection, perhaps even a drive-by, then a new report. My question is why do another inspection? Is there something in USPAP that says we can not do two appraisals based on one inspection? (Unless somehow the inspection is confidential or client specific)

I don't know the answer to that but I can not come up with anything that says that the client owns our inspection (so to speak) like they own the report. So why can't we two weeks latter do another appraisal with the old effective date of the inspection? Is this something we dreamed up and agreed on or is there something in USPAP that I am overlooking? Is the inspection in some way client confidential?
 

Bill_FL

Senior Member
Joined
Aug 23, 2002
Professional Status
Certified General Appraiser
State
Florida
If it is a "new appraisal" the best way to establish that is with a new effective date. I dont know about you, but I am not willing to bet the house didnt burn down since the last time I saw it.
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Jeff:

Firstly, I agree with Bill that making the second inspection absolutely insures interpretation of yoru work product as a new effective date and a new assignment.

I am one of those who is not entirely clear that barring the second inspection that we MIGHT not get accused of 'stealing' the orginal clients 'right' to the appraisal inspection AND the subsequent (second) appraisal report.

The lack of clear definition of confidentiality, proprietary rights and/or defined ownership rights of the DATA acquired on an appraisal 'viewing' make me desire to cover my a$$ets, by the simple step of requiring a new inspection.

With the recent changes to USPAP and some face time with the powers that be for definition and clarification, I am entirely comfortable taking my notes from last summers class, and handing a judge or lawyer those very specific quotes/notes and saying I have the right and even responsibility to make my professional services available to the public and financial institutions who need or request them. I also have names and numbers of other witnesses, and those of the principals who taught the class!
~~~~
sooo
I have some doubts as to whether I could be hung for 'using' the previous inspection which was arranged on behalf of client A for the purpose of developing a subsequent report for client B... but you know having doubts is not the same as certainty.

I have NO qualms about performing a second inspection/effective date report at the request of client B.

I may be proven wrong in a court of law.

One of the concerns of the ASB is to provide the greatest public good, granted that this is USALLY defined as "to the financial institutions" but it also applies to the individuals who make up the public as a whole! If you apply THAT test and a little mercy in terms of fee to the homeowner, it seems to me that the greater good IS served by performing a second appraisal.

I will go with that.
 

Jeff Horton

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Alabama
Good answers and I agree that a second inspection is good idea. But I am still asking/wondering if anyone knows if that is a requirement and something that makes us feel safe?

In other words is this just another Urban legend?

Just curious but I don't "think" anyone owns the rights to our inspection. Just the report we produce.

And so what if the house has burned? If your effective date is your inspection date so what? I actually had that happen. My appraisal was dated for a couple of days before it burned. Ended up doing it for the Insurance Company instead of the Mortgage company but it didn't change my appraisal.
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
If it is an appraiser legend: I started it :p !

as a solution to the idiocy of the present changes to the 'law'.

Jeff:
But I am still asking/wondering if anyone knows if that is a requirement and something that makes us feel safe?

Nope: entirely MY personal opinion and CYA fix.


AO-10 exposure draft really digs into it.

Read old USPAPS back to the beginning issue... if you can lay your hands on them. I have every copy.

Previously we theoretically could NOT do a second appraisal unless/until the use of the first one went away, or the client released the report, or the market changed, or about a half dozen other 'requirements' were eliminated or fulfilled.

MOST OF WHICH "requirements" ACTUALLY WERE LEGEND!!!opinion, interpretation or "cause I heard it someplace else" as promulgated by USPAP instructors nationwide or local... instead of FACT as per the actual documents... :eek:

The citations in my USPAP class notes indicate a definite trend to greater restrictions rather than lesser over the last 12 years. The actual document gets thicker by the year.. but resolution of this issue is minimally or not at all addressed!

Until recently. but all the side issues are awaiting 'final answer'

COMMENT on AO-10! opin, squawk. define! B)

or deal with it based on others opinions :(

you pick.
 

Lee SW IL

Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
As advised by our Director of RE Appraisal in Illinois, reassinging a report by an appraisal is questionable.

His advise was to reinspect the property, perform a new report. ABC Bank can use an appraisal report that was performed for XYZ Mortgage. But, if ABC Bank requires the appraisal to have their name as the client, the appraiser could accept a new assigment from the new client. His point was you have two reports out with two different lenders with the same inspection date.

Even with a letter from XYZ Mortgage advising they are releasing the appraisal to ABC Bank, he advised against a reassignment. He made a point, only the appraiser must comply with USPAP, lenders do not have to comply with USPAP.
 

Jeff Horton

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Alabama
Originally posted by Lee Ann@Apr 30 2003, 12:19 PM
If it is an appraiser legend: I started it :p !
This may be the first time the world actually knows where a Legend started :rofl:

As I said I am really curious. I just had one that I did the drive-by in order to move it to a new lender. Then I pulled out and read AO-10 and was discussing this with an appraiser freind when this question came up.

Personally I am not convinced that I couldn't have just done another appraisal without another inspection. Of course in reality I would have been just basically copied the old one and changed the Appraisal date and kept the effective date. I am not comfortable to do that (yet) but at the same time I can not find anything in writing that says we can not do it that way. Maybe someone else has some information to share on this. If there is a problem I have not found it yet.

One of my Pastors favorite sayings is "Its not the things you know that cause the problem. It's the things you know that are not so." I think that describes USPAP and our understanding of it! :eyecrazy:
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Simple solution is .....no change in effective date!
 

Claude From NY

Senior Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
New York
I view it like this, the certification states that "I have personally inspected the interior and exterior of the subject". Given the scope of work, an informed intended user expects this inspection to be current with the report. So even though I may have inspected the property a week ago, I will at minimum do a " walk through" for a new assignment. Otherwise I would disclose that I have made a previous inspection for a different client and use that inspection / effective date.
 
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