• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Withdrawing an Appraisal Report

Status
Not open for further replies.

Richard Carlsen

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Michigan
Interesting situation developing here in the North woods. I'd like to hear your take on it.

We have a listed HUD Code manufactured repo house that has a purchase agreement through a local Broker. The lender is an out of state company that I've done work for before, mostly COD but a couple of assignments that were invoiced. Two of these invoices are now at about 30 days or so past due with explanations on when payment will be forthcoming. I tend to believe them.

The sale is an RD with the borrower paying my fee. The borrower gave the check to the Broker who sent on to me to my P.O. Box. Being a sale with a Broker involved, the order went to the top of the pile, was inspected, the appraisal written and sent off. Yesterday, we receive notice from our bank that the check is NSF.

I called the broker, leaving a message about the check and telling him that I need to get paid immediately, by cash or certified funds. I also left a message at the borrower’s number to the same effect.

And here's the kicker, I notified the Lender via email about the NSF check and told the lender that until I am paid in cash or certified funds, I was withdrawing my opinion of value contained in the report and would not release the report for use in a closing until I am paid as agreed.

A couple of questions for discussion:

#1 Do I have any basis to be able to withdraw the value opinion? (I've already done it but can I make it stick?)

#2 Can I condition an appraisal report “subject to being paid” for it in the condition line?

I'd like to hear your honorable opinions on this little fiasco.
 

airphoto

Senior Member
Joined
Jan 15, 2002
Professional Status
Retired Appraiser
State
Pennsylvania
Rich'd,

For future use, and not entirely a 'lil white lie' .. (watch out, the PC police from the other forum are gonna call me racist for suggesting that kinda lie ..):

Would better have sent message to the lender that said "have discovered circumstances that may cause a significant alteration in my opinion of value. Existing appraisal no longer valid, and valuation probably inaccurate and not to be relied upon! Please return appraisal pending re-consideration of this information."

That way, you've told the truth, just not the whole truth .. and stopped the transaction ..
 

Dave Brigle

Sophomore Member
Joined
Dec 1, 2002
What you are saying Richard is the appraised value is conditioned on a fee. You can not go back in time and pretend something didn't happen (Trent Lott syndrome). Someone could suggest that you are giving a value for a fee.

The appraisal (value) has nothing to do with your fee. Collecting the fee is a different problem.
 

airphoto

Senior Member
Joined
Jan 15, 2002
Professional Status
Retired Appraiser
State
Pennsylvania
Dave .. disagree!

The appraised value is NOT conditioned upon the fee .. just the transmittal of the report ..
 

Richard Carlsen

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Michigan
OK.

Lets chew on this idea: The appraisal report is the result of a contractual relationship with the lender (regardless of who pays my fee). If the lender does not uphold their end of that relationship by seeing that my fee is paid, then the contract is null and void. By not fulfilling their end of the contract, they have no right to the fruits of my efforts in fulfilling the contract.

Make sense?
 

jtrotta

Senior Member
Joined
Jan 16, 2002
Richard

the other end of the scenerio; Your were provided "misleading" information by- the Buyer / Realtor / and Lender, which leads us to an important "Fact" - was this an attempt to Defraud you :?:

The fact that the "Buyer" knowingly distributed a check that was not valid, indicates he/she - commited a Felony. To the best of my knowledged after all is said & done, if the Lender sent you the Order, they are ultimately Responsible - ipso facto :lol: :lol:

If you want to claim a withdrawl of the assignment, it should be in writting; if the intent of the Lender is to pay you, I would ask for a statement to that fact from them on their "Letter Head" for future use.

Good Luck
8)
 

xmrdfghap

Senior Member
Joined
Jan 15, 2002
Professional Status
General Public
State
Florida
I would take the check to your local DA and and file a complaint.

I would advise the client that until the fee is paid (plus the maximum amount of fees as determined by law), the USE of the report is is a violation of the law in the same manner that the use of stolen property, that the user knows is stolen, is tanamount to accessory after the fact.
 

George W Dodd

Senior Member
Joined
Jul 9, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
If the lender is the client then they are responsible for the fee. I would proceed with collection from the broker.
 

Dave Brigle

Sophomore Member
Joined
Dec 1, 2002
The lender is not in default with your contract. The assignment (contract) was conditional "COD". The client has no responsibility to collect your fee. The fight is between you and the borrower who wrote NSF check.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks